A new report by the International Council on Clean Transportation (ICCT) reveals that European automakers need to significantly increase their share of electric vehicle (EV) sales to meet the European Union's 2025 carbon dioxide (CO2) emission targets. The report, titled "Within Reach: The 2025 CO2 Targets for New Passenger Cars in the European Union", estimates that manufacturers will need to raise their battery electric vehicle (BEV) sales to an average of 28% by 2025, up from the current 16% in 2023, to comply with the regulations.

The EU's CO2 emission performance standards are designed to guide the automotive industry towards fully zero-emission vehicle sales by 2035. These regulations impose stringent CO2 limits on new car and van sales, with the 2025 target serving as a key milestone. The report examines data from the 10 largest automakers and finds that all but Volvo will need to cut emissions further to meet their goals.

Volkswagen and Ford face the most significant challenges, with each needing to reduce emissions by around 21%. Hyundai, Mercedes-Benz, and Toyota also have substantial reductions to make, exceeding the 12% average target across manufacturers. Meanwhile, BMW, Kia, and Stellantis are closer to compliance, with reductions required between 9% and 11%.

Source: ICCT

Although increasing the share of electric vehicles is the primary way to meet the targets, the report also notes that automakers have other compliance options. These include technological advancements, strategic adjustments, and utilizing legislative flexibilities, such as incentives for zero- and low-emission vehicles. Despite these challenges, the ICCT concludes that the 2025 targets remain achievable for all manufacturers.

This report underscores the urgency for automakers to ramp up their electric vehicle production and marketing as the EU continues its push toward a zero-emission future.