Continuous Tightening of Carbon Emission Policy Has Increased the Pressure on EU Automobile Enterprises to Transform
The European Commission not only ignored the call of carmakers to relax emission reduction targets in the year of the pandemic, but did the opposite, planning to further reduce carbon emissions from new cars. It is reported that von der Leyen, the President of the European Commission, will soon submit a new emission reduction and environmental protection plan to the European Commission in the near future. The new plan raises the EU's 2030 greenhouse gas emission reduction target from 40% to 55%. Under the EU's original plan, carbon dioxide emissions for new cars will be reduced by 37.5% by 2030. The European Commission now plans to increase this to 50%. It is reported that the EU will reset phased emission targets for new cars by June 2021. Previously, the most stringent carbon emission regulations in the history of the European Union was launched on January 1, 2020: 95% of new cars must meet the emission control target of 95g/km. From 2021, the average carbon dioxide emission of all new cars should be lower than 95g/km. Those failing to meet the target will face a fine of 95 euros per gram per car. In the wake of the outbreak of the novel coronavirus, overwhelmed car companies lobbied the EU hard, hoping to relax this year's carbon dioxide emission target, as new car sales and profits suffered. But they did not get the support of the European Union. During the outbreak of the epidemic, France and Germany have announced incentives to buy electric vehicles as part of their recovery plans to combat the epidemic. So far, it seems to have achieved certain results. The EU has become the fastest growing electric vehicle market this year, even surpassing China at one time, and the market growth rate has more than doubled. However, for carmakers with huge number of fuel vehicles such as Volkswagen, coupled with the best-selling medium and large fuel SUV, it is still difficult to meet the challenge, is likely to face carbon emission fines. According to the estimates, under the current policy, the 13 major EU car companies will pay about 14.5 billion euros in fines for excessive carbon emissions, of which Volkswagen Group may have to bear 4.5 billion euros in fines, making it the most severely fined car company. With the further tightening of policy, the pressure on EU car companies will further increase.