Scholz Pushes for Easing EU Auto Emission Fines and Unified EV Incentives

The German chancellor urges the EU to suspend penalties for automakers exceeding CO2 limits and calls for Europe-wide measures to boost electric vehicle sales.

Olaf Scholz has called on the EU to suspend upcoming CO2 emission fines for automakers, arguing they could hinder investments in electric vehicle production.
From 2025, stricter EU fleet emission standards could result in billions of euros in fines for automakers failing to meet the targets, with Volkswagen potentially facing the largest penalties.
Scholz advocates for a unified European approach to incentivizing electric vehicle purchases, suggesting tax benefits or direct subsidies to boost demand in the struggling EV market.
The European Commission will begin a strategic dialogue in January 2025 with automakers, unions, and industry groups to address challenges, including emissions rules and EV market competition from subsidized Chinese manufacturers.
Environmental groups, including Greenpeace, warn against relaxing emission regulations, arguing that the pressure is essential for climate goals and the long-term competitiveness of European automakers.