Euro auto still lacks consensus on CO2 emission policy

Back in 2017, the EU decided to pursue progressively stricter CO2 emission standards for light vehicles, which would culminate in an eventual ban on new internal combustion engine models in 2035. For 2025, a revised limit of 93.6g/km CO2 is set for passenger cars and vans, representing a 15% reduction from the 2021 baseline figure. This will be in place until 2029.

However, leading figures in the European automotive industry have criticised the implementation of this policy. Renault Chief Executive Luca de Meo warned in September 2024 that automakers are not compliance ready and could face billions in fines—the European Commission (EC) penalises each gram in excess of the specified limit to the tune of €95 (US$98). There are mixed opinions on the validity of this assessment.