Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

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: 27 September 2024, 20:19

» Published: 26 September 2024

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

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.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

The Central Bank Lowers - but Uncertain After Trump's Victory
1 MIN READ

The Central Bank Lowers - but Uncertain After Trump's Victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange Rises at Opening
1 MIN READ

Stockholm Stock Exchange Rises at Opening

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall

Better than expected for Novo Nordisk
1 MIN READ

Better than expected for Novo Nordisk

No "Trump Effect" on the Stockholm Stock Exchange
1 MIN READ

No "Trump Effect" on the Stockholm Stock Exchange

Stock Market Euphoria as Trump Heads for Victory
2 MIN READ

Stock Market Euphoria as Trump Heads for Victory

Rush on the Tokyo Stock Exchange after the election night
1 MIN READ

Rush on the Tokyo Stock Exchange after the election night