NetBet: Auto Manufacturers to Face Fines of €11.4 Billion for Exceeding EU Carbon Targets
- The top ten car manufacturers are facing a collective fine of €114.6 billion in 2021 unless they drastically reduce their carbon footprint, research shows.
- Daimler AG is the furthest away from meeting EU 2021 carbon targets, resulting in potential annual fines of €13.3 billion based on fleet emissions.
- Groupe PSA produced the most polluting best-selling models last year, which would cost them €1.263 billion to offset alone.
- No car manufacturer is currently on track to meet EU targets, as the transport sector still accounts for a staggering 24% of annual global carbon emissions.
LONDON, June 30, 2020 /PRNewswire/ -- None of the top ten car manufacturers are close to meeting EU carbon targets and could face annual fines of €11.4 billion each as a result, new research shows.
The Auto Emissions Report found that Daimler AG is the carmaker that's furthest away from achieving the 2021 EU target of 95CO2g/km average fleet emissions, while Toyota Industries is the closest to lowering its carbon footprint - but still faces significant fines.
Automakers need to substantially reduce their annual carbon footprint in order to meet EU emissions standards, or else face fines of €95 per CO2g/km that exceeds the target, multiplied by unit sales. Based on the fleet emissions and unit sales of top manufacturers over the last year, this equates to a staggering €11,462,337,802 on average in penalties each.
As well as paying fines for exceeding EU targets, auto manufacturers would also have to offset the emissions of their annual sales. In 2019, top ten car makers would have had to pay a collective €424 billion - or an average of 39.5% of their annual revenue each.
Manufacturers and distance from EU target
An analysis of the best-selling models of each brand reveals that Group PSA produced the most polluting cars on average last year, which would cost €1.3 billion to offset. Based on EU sales, the most polluting model sold last year was the Renault Clio.
Dissecting the running costs of manufacturers' flagship models shows that the Mercedes-AMG GT was the most polluting model on the market last year, while the Peugeot 508 was the most environmentally friendly. Despite this, the 508's carbon footprint is still equivalent to consuming 12,208 litres of gas, or 10,659 litres of diesel.
The transport industry is one of the largest contributors to the global carbon footprint, accounting for an estimated 24% of the world's greenhouse gas emissions last year. Although many manufacturers are electrifying their fleet to reduce emissions, the car making sector is facing more pressure than ever to tackle their contribution to climate change.
To see the results of the Auto Emissions Report, visit: https://www.netbet.co.uk/auto-emission-report
Data gathered from a range of sources, including auto manufacturers' annual reports, EUROPA, transportenvironment.org and Carbon Engineering. Tonnes are metric.
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