Czech Republic Joins Italy in Opposition to CO2 Fines for Carmakers

The Czech Republic is among several EU nations pushing back against the bloc's ambitious Green Deal aimed at combating climate change and reducing pollution.

Prague: The Czech Republic is aligning with Italy to oppose heavy penalties for carmakers set to take effect next year under new CO2 emission regulations in the European Union, Czech Transport Minister Martin Kupka announced on Sunday.

During a debate on CNN Prima News, Kupka highlighted that car manufacturers may struggle to meet the new targets due to a decline in demand for electric vehicles across Europe. He stated that both countries agreed to present their unified position at the upcoming meeting of EU leaders in Budapest.

Beginning in 2025, the EU will tighten its emissions cap on new vehicle sales from 116 grams of CO2 per kilometer to 94 grams. Exceeding this limit could result in fines of €95 ($103) for each gram of excess CO2, multiplied by the number of vehicles sold. Kupka expressed concerns that carmakers might find it challenging to adapt their product lines to comply with these stricter requirements.

“They cannot do it because interest in electric cars is falling in all of Europe,” Kupka said, emphasizing that the potential financial penalties could impede carmakers’ ability to invest in research and development.

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The Czech Republic is among several EU nations pushing back against the bloc’s ambitious Green Deal aimed at combating climate change and reducing pollution. The upcoming emission limits are part of a broader initiative that includes plans to ban the sale of new combustion engine vehicles by 2035.

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In the Czech Republic, the automotive sector is a significant contributor to the economy, accounting for approximately 9% of GDP. In 2023, the country produced 1.4 million cars, making it one of the largest per-capita automotive producers in Europe. Major car manufacturers operating in the Czech Republic include Volkswagen’s Skoda Auto, Hyundai Motor Co, and Toyota Motor Corp.

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