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Czechia and Italy to join forces in fight against CO2 fines for automakers

The EU will toughen the rules on vehicle CO2 emissions from 2025. Photo: Adriana Adie/NurPhoto via Getty Images
The EU will toughen the rules on vehicle CO2 emissions from 2025. Photo: Adriana Adie/NurPhoto via Getty Images
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The Czech Republic and Italy have agreed to team up in a bid to prevent carmakers from facing increased penalties from 2025 under new EU rules on CO2 emissions.

Czech Transport Minister Martin Kupka said on Sunday 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 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 Škoda Auto, Hyundai Motor, and Toyota Motor Corp.
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