Green German state premier says EU fines for excessive car emissions “make no sense”

The state premier of southern German Baden-Wurttemberg, Green Party politician Winfried Kretschmann, has called for the suspension of possible EU climate penalties for the automotive industry that could cost carmakers billions of euros, news agency dpa reported in an article published by the Frankfurter Allgemeine Zeitung. The affluent state, which is a carmaking hotspot housing Mercedes, Porsche, Bosch and many other prominent auto industry firms, could not stand by and impose hefty fines on its companies while other countries were supporting their key industries with billions of euros, Kretschmann argued. “That makes no sense,” the Green politician said.

According to current EU legislation, car manufacturers face fines if they exceed the so-called fleet limits for CO2 emissions, which is meant to incentivise the roll-out of low-emisisons electric vehicles. These limits are set to tighten in 2025 with manufacturers having to pay a fine if their vehicle fleet on average is emitting too much. Kretschmann stressed that a suspension would not call European climate targets into question. Instead, the industry, which has long since pledged climate neutrality, would be given the necessary flexibility, he argued. This would strengthen the economy instead of waging cultural battles over the combustion engine, the state premier added.

Germany’s economy minister Robert Habeck from the Green Party has also come out in favour of the suspension. The automotive industry is a central pillar of the German economy and directly employs hundreds of thousands of people in the country. The shift to electric mobility is shaking up longstanding industry networks and production practices centred on combustion engines which is exacerbated by the German carmakers’ late decision to significantly ramp up their investments in EVs and battery technology, where they face fierce international competition and lag behind in key fields.