Volkswagen:EU CO2 Regulation: Difference between revisions

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* Beyond 2035, the EU targets to have 100% emission reduction.
* Beyond 2035, the EU targets to have 100% emission reduction.
* '''Failure to comply with the regulation will lead to a fine of €95 per g/km of target exceedance for every vehicle registered in the EU.'''
* '''Failure to comply with the regulation will lead to a fine of €95 per g/km of target exceedance for every vehicle registered in the EU.'''
* Automakers are allowed to pool their fleet to meet the regulation targets.  
* Automakers are allowed to '''pool''' their fleet to meet the regulation targets.
The above targets are just reference targets. Each car maker has a difference conversion factor for 2025 based on their average WLTP and NEDC emissions in 2020. As such the EU mass adjustment figure in 2025 is expected to be reduced by 21%<ref>https://te-cdn.ams3.digitaloceanspaces.com/files/2024_04_Carmakers_compliance_2025_targets.pdf</ref>.
The above targets are just reference targets. Each car maker has a difference conversion factor for 2025 based on their average WLTP and NEDC emissions in 2020. As such the EU mass adjustment figure in 2025 is expected to be reduced by 21%<ref name=":2">https://te-cdn.ams3.digitaloceanspaces.com/files/2024_04_Carmakers_compliance_2025_targets.pdf</ref>.


T&E estimates that carmakers would have to increase their BEV share (based on 2023 sales) to 24%  in 2025 in order to achieve the emission target<ref name=":0">https://www.transportenvironment.org/articles/bridging-the-gap-carmakers-progress-toward-the-2025-car-co2-targets/</ref>.
T&E estimates that carmakers would have to increase their BEV share (based on 2023 sales) to 24%  in 2025 in order to achieve the emission target<ref name=":0">https://www.transportenvironment.org/articles/bridging-the-gap-carmakers-progress-toward-the-2025-car-co2-targets/</ref>.
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* Volkswagen's new light commercial vehicles in the EU had an average emission of 187 g/km at the end of 2023.
* Volkswagen's new light commercial vehicles in the EU had an average emission of 187 g/km at the end of 2023.
* Volkswagen Group assumes that its new passenger cars and light commercial vehicles fleet in the EU will meet the 2025 statutory target<ref name=":1" />.
* Volkswagen Group assumes that its new passenger cars and light commercial vehicles fleet in the EU will meet the 2025 statutory target<ref name=":1" />.
* In 2021, Volkswagen's statutory target was 121.6 g/km (based on WLTP). Statutory targets are differs from the EU emission targets since it takes into account pooling<ref>https://www.eea.europa.eu/en/analysis/indicators/co2-performance-of-new-passenger?activeAccordion=ecdb3bcf-bbe9-4978-b5cf-0b136399d9f8</ref>. If the statutory target reduces by 15% in 2025, it means Volkswagen still has a gap of 15.6 g/km for passenger cars.  [[File:VW CO2 emissions.png|left|thumb|350x350px|Source: Volkswagen 2023 annual report, page 165]]
* In 2021, Volkswagen's statutory target was 121.6 g/km (based on WLTP). Statutory targets are differs from the EU emission targets since it takes into account pooling<ref>https://www.eea.europa.eu/en/analysis/indicators/co2-performance-of-new-passenger?activeAccordion=ecdb3bcf-bbe9-4978-b5cf-0b136399d9f8</ref>. If the statutory target reduces by 15% in 2025, it means Volkswagen still has a gap of 15.6 g/km for passenger cars.
 
* '''According to Handelsblatt, the statutory target for Volkswagen in 2025 will be 105 g/km<ref>https://www.handelsblatt.com/mobilitaet/elektromobilitaet/klimabilanz-verschaerfte-grenzwerte-setzen-volkswagen-unter-druck/100016675.html</ref>.''' [[File:VW CO2 emissions.png|left|thumb|350x350px|Source: Volkswagen 2023 annual report, page 165]]
 




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== Strategies that Volkswagen can employ to avoid paying fine in 2025 ==




According to Digital Ocean which has taken into account T&E estimates, Volkswagen can avoid paying the 2025 penalty by employing the following strategies<ref name=":2" />;


* Increasing its BEV share of unit deliveries to 24% in 2025 from 12% in 2023 and only growing ICEs slightly. Volkswagen has a strategic target of 20% BEV share worldwide by 2025 (and 29% BEV share in the European area).
* Reducing the number of most polluting vehicles, increasing the share of MHEVs to 46% in 2025 (from 12% in 2023) and increasing the share of BEVs to 21%.
* Pooling with Volvo cars and increasing BEV share to 19%.
* Pooling with Tesla, increasing BEV share to 15% and increasing ICEs only slightly.<br />