Renault Executive Is ‘100% Confident’ the EU Will Ease CO2 Rules

(Bloomberg) -- A top executive at one of Europe’s biggest automakers is certain Brussels will end up relaxing car-emissions standards that are supposed to get stricter this year.

The European Commission has been in talks with the industry to address challenges including the regulation and will present an action plan on March 5. Renault SA Chief Strategy Officer Josep Maria Recasens is “100% confident” changes will be introduced to give carmakers more leeway to meet pollution rules.

“It’s not about giving up or delaying the targets,” Recasens said on the sidelines of an event organized by Spain’s carmakers’ association in Madrid. “It’s about being flexible about how those goals are achieved. Otherwise, what’s the alternative? To pay fines or to shut factories?”

Carmakers across the bloc have been warning for months that they risk having to pay billions of euros in fines over failing to meet 2025 targets, citing the slowdown in demand for electric vehicles. Some member states have discussed options including introducing multiyear compliance periods, or allowing manufacturers to bank or borrow CO2 credits across several years.

Several manufacturers already have disclosed intentions to pool their fleet with EV makers that can help them comply with the regulation. Tesla intends to form a pool with carmakers including Toyota, Ford and Stellantis, while Mercedes-Benz aims to partner with Volvo Car and Polestar.

A proposal by the commission to spare carmakers from emissions fines would need approval by member states and the EU parliament to enter into force.

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