The French government is reducing its subsidies for people buying fuel-efficient cars but is increasing penalties for buyers of high-consumption vehicles.
In 2008 France launched a bonus-malus system which has brought average CO2 emissions from new cars down from 149 g/km to 128. But in revenue terms, the penalties on gas-guzzlers have not brought in enough money to offset the cost of subsidising fuel-efficient cars. The bonuses start at €5000 for buyers of cars emitting less than 50 g/km and include €100 for cars emitting 90-105g, while the penalties start at €200 for cars emitting 141-150g. In future, any car emitting 190g or more will have to pay the penalty every year, not just once.
But going back on the 2035 zero-emissions target and deploying no industrial strategy could instead see loss of 1 million auto jobs.
A new study models the impact of EU electric vehicle leadership and ambitious policies on investment and jobs.
In many markets European carmakers are falling behind Chinese EV manufacturers as they have little to offer to aspiring drivers in the Global South ri...