It is a white note that circulates in ministerial offices and European bodies. In European jargon, it is called a “non-paper”. It is not signed, but it comes from a major car manufacturer, whose CEO also chairs the European Automobile Manufacturers Association in Brussels (ACEA). Everyone will have recognized Renault and Luca de Meo, even if the company makes no comment.
This document advocates the use of a little-known provision, Article 122.1 of the Treaty on the Functioning of the European Union (TFEU), a sort of “European 49.3”, which would make it possible to urgently defer the application of a regulation, bypassing the Strasbourg Parliament.
The purpose of this document, which The World could read, is to postpone from 2025 to 2027 the tightening of the so-called CAFE (Corporate Average Fuel Economy) standard on carbon dioxide emissions. From 2025, the average threshold authorized per vehicle will decrease by 15%, to reach a maximum of between 90 grams and 95 grams of CO2 per kilometer (a figure that varies depending on calculations and brands). A car manufacturer that exceeds the limit would be liable for a fine of 95 euros per excess gram for each car sold. Considering current sales in the European market, in 2025, Renault's note estimates that “Penalties could reach 13 billion euros for passenger cars and 3 billion for commercial vehicles”.
A high-performance thermal vehicle, the note recalls, currently emits on average 120 grams of CO2 per kilometer. To comply with the CAFE standard, a manufacturer will therefore have to sell one “wattage” (100% electric) for four thermal vehicles. However, the European electric market “has been stagnating for over a year at less than 15% for private cars and 7% for utility vehicles”the document specifies. Which makes the objective impossible to achieve.
Three solutions to avoid the fine
Manufacturers have three options to avoid the fine. The first, the note warns, would be dramatic for employment. It involves reducing the production of thermal vehicles by more than two million units and that of vans by 700,000 units, “the equivalent of more than eight European factories”.
The second is to reach an agreement with American or Chinese manufacturers (Tesla, Volvo, a subsidiary of Geely, or MG for example) to buy carbon credits from them. But this “pooling” amounts to subsidising competitors, at a time when Europe is trying to introduce customs duties to curb them. “In any case, details the note, “Given the current market share of electric vehicles in Europe, pooling would not be enough” to avoid fines.
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Source: Lemonde
