Car Crisis May Lower Climate Demands in EU

Ease up on the emission targets and let's build gasoline cars even after 2035! The demands are getting louder from both governments and companies in the EU. But Sweden says no.

» Updated: September 27 2024

» Published: September 26 2024

Car Crisis May Lower Climate Demands in EU
Photo: Sylvain Plazy/AP/TT

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Italy's government is taking the lead as more and more voices are heard – not least from various right-wing parties – about the need to slow down the pace of the EU's climate policy.

Anyone who is a friend of Europe must have the courage to say when things don't work, Prime Minister Giorgia Meloni said in a speech to the industrial association Confindustria last week.

Italy is now pushing to bring forward a planned review of the EU's new car emission rules to 2025 instead of 2026. This would allow them to change the targets set for 2025, which require car manufacturers to reduce their emissions by 15 percent compared to 2021 – otherwise, they risk facing hefty fines.

Petrol Cars

Italy also wants to go further and ensure that the revision leads to the abolition of the decision not to allow any new petrol and diesel cars from 2035.

They have support from, among others, Germany's conservative opposition leader Friedrich Merz, who could well be Chancellor in a year's time.

The Swedish government, however, is clear that it does not want to backtrack on the decisions.

It's important for industry that when the EU sets a regulatory framework, industry knows what the rules are. I think shifting gears mid-way is a dangerous path to take, says Minister for Trade and EU Affairs Benjamin Dousa (The Moderate Party) on his way to an EU meeting in Brussels on Thursday.

Electric Car Tariffs?

The demands to ease climate targets come at a time when European electric cars are struggling with declining sales figures and threats of closure.

The EU Commission is pointing fingers at overly state-subsidized competition from China and has introduced preliminary tariffs – which are not at all popular with the German car industry.

Heavy pressure is being applied to get EU countries to say no to making the tariffs permanent when the issue is put to a vote within a month.

Sweden has not yet made up its mind. The government has many considerations to take into account.

Sweden is a strong free trade advocate, but we also know that China has unfairly subsidized the industry. But we must also consider how it affects Sweden's economy, says Dousa.

After long disagreements, EU countries agreed last spring to effectively ban the sale of new petrol and diesel cars from 2035.

"By 2035, all new cars should be emission-free. If you can invent a combustion engine that doesn't emit anything before then, that's fine. But a technology that produces carbon dioxide will not be allowed", a Commission official explained when the proposal was presented two years ago.

On the way, the average emissions of the newly manufactured vehicle fleet should be reduced by 15 percent by 2025 and 55 percent by 2030, compared to 2021.

The legislation includes a review to be conducted in 2026.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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