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SummaryCompaniesTruckmakers send letter to EU asking for emission credit system to soften"Draconian" penalties unfairly impact truck manufacturers, Daimler saysHigh prices, poor charging infrastructure and battery costs remain roadblocks to major electrification BRUSSELS/STOCKHOLM, Oct 30 (Reuters) - European truck manufacturers including Traton's Scania (8TRA.DE), opens new tab, Volvo (VOLVb.ST), opens new tab and Daimler Truck (DTGGe.DE), opens new tab have urged the European Union to soften its CO2 emissions rules for the sector, a letter seen by Reuters showed. The industry is under pressure to cut its planet-warming emissions. But electric trucks still make up a small fraction of the market, as they cost significantly more than diesel models and buyers remain concerned about charging infrastructure. Advertisement · Scroll to continueReport Ad In a letter to the European Commission dated Oct. 13, the companies called for changes to the EU's credit system which rewards manufacturers whose emissions fall below both the bloc's targets and a linear trajectory between target years. Instead, they want credits for simply beating the headline targets. Christian Levin, CEO of Scania and Traton, told Reuters the letter was "a cry out for help". "We're not arguing the targets are wrong... but it's going to be very, very difficult," said Levin, who is also the chair of the European automobile manufacturers' association's (ACEA) commercial vehicles board. Advertisement · Scroll to continue Get the key points from this story with Reuters AI A spokesperson for Daimler Truck said the industry had invested heavily in electrification but faced "draconian" penalties for missing targets - despite factors outside of their control, including battery manufacturing and charging infrastructure. "The best would be to remove these stupid fines on the industry, and rather force everyone in the system through incentives or penalties to do the job together," Levin added. Under EU law, truckmakers must cut emissions from new trucks by 15% by 2025, rising to 90% in 2040, compared to 2019 levels. Most truckmakers are on track to meet the 2025 goal - mainly through improving their diesel-powered lineup rather than selling more electric trucks. Environmental campaigners warn that weakening the targets could slow Europe's shift to electrification and open the door to Chinese producers. Campaign group Transport & Environment said the proposed changes could cut EU sales of zero-emission trucks by 27% in 2030. The European Commission did not immediately respond to a request for comment. Commission President Ursula von der Leyen recently promised heavy-duty vehicle manufacturers "concrete measures to assist them to reach their targets", in a separate letter to EU leaders. Brussels is already considering weakening its 2035 car CO2 emissions target, following pressure from industry and member states. Reporting by Kate Abnett in Brussels and Marie Mannes in Stockholm; additional reporting by Christina Amann, Ilona Wissenbach, Giulio Piovaccari Purchase Licensing Rights Kate AbnettThomson ReutersKate Abnett covers EU climate and energy policy in Brussels, reporting on Europe’s green transition and how climate change is affecting people and ecosystems across the EU. Other areas of coverage include international climate diplomacy. Before joining Reuters, Kate covered emissions and energy markets for Argus Media in London. She is part of the teams whose reporting on Europe’s energy crisis won two Reuters journalist of the year awards in 2022.EmailMarie MannesThomson ReutersStockholm-based company news correspondent who mainly covers anything to do with retail and industrial companies in Sweden as well as other sectors with Swedish companies. She previously covered the general Nordic stock market from Gdansk, reporting on a range of subjects, from companies exiting Russia to M&As and supply chain concerns. Marie has degrees in journalism and international relations and is keen on finding stories that drive the market and that have unreported elements to it.EmailXInstagramLinkedin
