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Czech Republic joining Italy to fight carmakers’ CO2 fines
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PRAGUE (Reuters) – The Czech Republic will join Italy in seeking to prevent carmakers from facing heavy penalties from next year when tougher CO2 emission rules take effect in the European Union, Czech Transport Minister Martin Kupka said on Sunday.
Kupka said carmakers will face problems meeting new targets due to falling demand for electric vehicles in Europe, adding that the two countries had agreed on Friday to present their joint stance this week when EU leaders meet in Budapest.
Starting in 2025, the EU will lower a cap on average emissions from new vehicle sales to 94 grams/km from 116g/km. Exceeding that cap could lead to fines of 95 euros ($103) per excess CO2 g/km multiplied by the number of vehicles sold.
Carmakers face trouble adjusting their ranges to meet those targets, Kupka said.
“They cannot do it because interest in electric cars is falling in all of Europe,” Kupka told a Sunday debate show on broadcaster CNN Prima News. He said carmakers would lack money to finance research and development if they are forced to pay fines.
The Czech Republic is among a group of EU countries pushing back against the bloc’s so-called Green Deal to tackle climate change and curb pollution. The tougher limits next year are a step towards plans to ban sales of new combustion engine vehicles in 2035.
The car industry contributes around 9% of GDP in the Czech Republic, a country of 10.9 million which made 1.4 million cars in 2023, making it one of Europe’s biggest per-capita producers.
Three carmakers operate in the country – Volkswagen’s Skoda Auto, Hyundai Motor Co and Toyota Motor Corp.
($1 = 0.9230 euros)
(Reporting by Jason Hovet; Editing by David Holmes)
The Green Deal is a set of policy initiatives by the European Union aimed at making the economy sustainable by addressing climate change and environmental degradation through various measures, including stricter emissions regulations.
Fines in the automotive industry refer to monetary penalties imposed on car manufacturers for exceeding regulatory limits, such as CO2 emissions, which can significantly impact their financial performance.
Electric vehicles play a crucial role in reducing emissions by replacing traditional combustion engine vehicles, which produce higher levels of CO2 and other pollutants, thus contributing to cleaner air and lower greenhouse gas emissions.
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