The European Union’s executive arm may propose a solution in March to exempt automakers from emissions fines while sticking to its ambitious green transport goals, said Peter Liese, the top lawmaker on environment for the European People’s Party, the bloc’s largest political group.

The European Commission is in talks with the auto industry to address the challenges it faces and will present an action plan next month, according to the report. Liese said the action plan could include amending legislation to allow the banking and lending of emissions credits to give automakers more flexibility in meeting emissions standards.

On February 10, Liese told the media in Brussels: “I hope there will be short-term measures that allow us to maintain the current targets but remain flexible in terms of penalties. For example, if you do not meet the target in 2025, you can make up for it by exceeding the target in 2026 and 2027. I think this is a good thing. We have already applied this rule in the heavy vehicle market and it can be used in the light vehicle and car sector.” However, any proposal from the European Commission will need to be approved by member states and the European Parliament before it can take effect.

The European Automobile Manufacturers’ Association (ACEA) has repeatedly warned that automakers that fail to meet emissions standards will face heavy fines, and Volkswagen is trying to offset the 1.5 billion euros ($1.6 billion) in fines expected this year. Currently, automakers are allowed to “share” emissions with other automakers to avoid high fines. However, Bloomberg reported that this move may benefit foreign manufacturers such as Tesla and BYD rather than local European manufacturers.

The European Union launched its Green Deal five years ago as a cornerstone of potential growth, but public support for the deal has waned over concerns about the cost of energy transfer and the competitiveness of regional industries, while carmakers in particular have been hurt by persistent inflation, high borrowing costs and slowing growth in the electric vehicle market.

Hongchen Electronics has been continuously promoting technological innovation, improving product performance and reliability to meet market challenges and opportunities!

Hongchen Electronics FB:https://www.facebook.com/profile.php?id=100090112207603

Hongchen Electronics TK:https://www.tiktok.com/@hongchenelectronics?lang=zh-Hant-TW

Hongchen Electronics YouTube: https://www.youtube.com/@homchcable

Welcome to subscribe and watch！