Germany has joined a growing backlash against fines for carmakers missing net zero targets as the Government comes under pressure to ease Britain’s electric car mandate.
Olaf Scholz, the German chancellor, has criticised EU plans to impose steep fines on manufacturers that miss carbon-reduction goals – saying the companies should instead be able to invest the funds in cutting emissions.
“The money must remain in the companies for the modernisation of their own industry, their own company,” Mr Scholz said.
The comments add to pressure on net zero mandates, which carmakers have said are becoming increasingly unrealistic as the majority of motorists shun electric cars.
Last week Louise Haigh, the Transport Secretary, held talks with major carmakers in Downing Street and pledged to work with the industry amid growing discontent over the UK’s own zero emission vehicle (ZEV) mandate.
The EU is introducing emissions targets that the car industry has said could lead to fines of billions of euros.
From next year, carmakers must reduce the average emissions of cars they sell by 15pc compared to 2021 levels as the EU moves to a total ban on petrol-powered cars by 2035.
Carmakers have pleaded for “urgent relief measures” in the wake of slowing consumer demand for electric cars, which help drive down the average emissions figure.
Companies have also said other “crucial conditions” such as charging infrastructure that would boost EV sales are not in place.
Robert Habeck, Germany’s economy minister, suggested earlier on Monday that the fines could be suspended next year if manufacturers were to make up the difference in later years.
Germany is expected to hold federal elections early next year following the collapse of the Scholz-led coalition government earlier this month.
Net zero rules could become a key election topic because of the importance of the automotive industry to the German economy.
Mr Scholz’s comments add to growing concern about the EU rules. Giorgia Meloni, the Italian prime minister, has said the 2035 ban is “self destructive” and Italian ministers have called for an urgent review of the laws.
In Britain, car manufacturers face fines of £15,000 per vehicle if they fail to meet a target of 22pc of sales being electric vehicles this year, rising to 28pc next year.
Last week, Ford said it would cut 800 jobs in Britain, in part blaming the mandate.
Nissan warned that the rules risked causing “irreversible” damage to the UK’s carmaking industry.
The Department for Transport said it planned to work “constructively and in close partnership with the sector” and suggested it could ease rules, but said the Government was sticking to plans to reinstate the petrol car ban in 2030.
Donald Trump’s incoming administration is reportedly planning to end subsidies for electric car sales.
