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CO2 Emission targets can result in giant fines for carmakers

Lars Erik Maurud, PA energy expert, is quoted in an article in Adresseavisen discussing how European carmakers are struggling to meet the EU’s emissions limits due to be implemented in 2021.

According to PA’s annual benchmark of carmakers, several may face huge fines if they fail to meet the limits which have been tightened to 95g of carbon per kilometer. Moreover, European car manufacturers will have to meet the requirements of a new EU legislation, where real driving emissions, monitored using portable emission measurement systems (PEMS), will be included.

According to PA’s benchmarking study, four car producers will struggle to meet EU’s emission limits: Volkswagen, BMW, Hyundai-Kia and Jaguar Land Rover. Even though the car producers invest about €40 million in research and development, several of them are facing fines of millions of euros. Meanwhile, PSA (Peugeot Citroën), FCA (Fiat Chrysler), Renault-Nissan, Toyota and Volvo all look set to reach their manufacturer-specific targets in this year’s annual rankings.

The CO2 Emissions Challenge Report

The CO₂ emissions challenge: how can carmakers meet the 2021 targets for CO₂ emissions?

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Lars Erik says: “Each year we measure emission values from different automakers and we believe the Worldwide Harmonized Light-Duty Test Procedure (WLTP) will provide more realistic emission figures than current tests – which have been criticised for not showing what the cars actually use in real life.” 

Lars Erik says that the manufacturers are trying different strategies to meet the EU requirements: “Toyota has increased focus on hybrid technology, while German carmakers have so far focused on optimising diesel and gasoline engines.

Failing to meet emission limits may even affect the stock price, so we are a little surprised that some have not taken more active steps. It's about culture. Take BMW as an example. They are a premium manufacturer and probably do not want to put small motors in their big cars.”

Lars Erik also believes that manufacturers, who fail requirements, would struggle to gain sympathy, as several others are likely to reduce emissions sufficiently.

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