The new European emission regulations come into force, with possible billion-dollar fines

This Wednesday, January 1, 2020, the new European regulation on carbon dioxide (CO2) emissions for light vehicles comes into force, which will force manufacturers to ensure that the average of their cars sold in the region in 2020 does not generate more than 95 grams of CO2 per kilometer traveled if they want to avoid fines that could rise to billions of euros.

As can be seen from the agreement reached by the Twenty-Eight in Brussels, car producers will have up to three years to adapt to this new rule. Thus, in the period 2020-2022, a car that contaminates less than 50 grams of CO2 per kilometer will be counted as two sales the first year, as 1.67 vehicles in the second and as 1.33 cars in the third. It won’t be counted as a single vehicle until 2023.

Exceeding the limits set would mean exposing yourself to the payment of millionaire fines since, for each gram and vehicle sold that exceeds these figures, the companies will have to pay 95 euros.

Considering the sales in Europe of the different companies, Volkswagen could be the worst stop. In 2018, the average emissions of its vehicles registered in the common market amounted to 121.2 grams per kilometer, which represents a deviation of 26.6 grams that, multiplied by the more than 3.6 million cars it marketed in Europe, the German consortium would have to pay 9,190 million euros, according to data from Jato Dynamics collected by Europa Press.

Grupo PSA would also face millions in fines to follow last year’s path. Its vehicles expelled on average 114.2 grams of CO2 per kilometer, which means that it would have to pay up to 5,390 million euros in fines. Likewise, other groups such as Renault, FCA or Daimler also face sanctions, with fines that could be around 3,570, 3,240 and 3,010 million euros, respectively.

Among the companies that are in a better situation is Toyota. According to its sales in 2018, it would have to pay 550 million, since the average of its models emits 101.3 grams of CO2 per kilometer.

ELECTRIC OFFENSIVE

However, all brands have taken advantage of 2019 to boost their electric offensives and try to adapt to strict European regulations, in order to minimize eventual fines.

“The potential hefty fines are acting as a huge incentive for the launch of an unprecedented number of new electric or hybrid vehicles,” explains Moody’s Vice President and Analyst James Leaton.

For its part, the Federation of Associations of Automotive Dealers (Faconauto) has insisted that to meet the emissions targets for next year you have to move “from gasoline mode to diesel mode”

“We have to go from 27% diesel to 47%, and the rest must be hybrid and gasoline, and of course, plug-in hybrid, which will surely be an important part of the solution,” said the president of Faconauto, Gerardo Pérez, since diesel emits less CO2 into the atmosphere than gasoline.

INCREASED EMISSIONS

However, in 2018 the average carbon dioxide emissions of new cars sold in Europe stood at 120.6 grams per kilometer, 1.8% more compared to the figures of the previous year, according to data from the Association of European Automobile Manufacturers (ACEA).

Sources in the sector explained to Europa Press that this increase in CO2 emissions from new cars is due to the greater demand for off-road vehicles and, especially, to the uncertainty linked to diesel, which has caused a setback in the registrations of cars with this type of fuel.

Spain, on the other hand, was below the European average in terms of carbon dioxide emissions from cars, with 118.1 grams per kilometer, which represents a progression of 2.7% compared to the data collected during the previous year.

Source: Europe Press