PARIS (Reuters) – Europe’s autos business may face fines of 15 billion euros ($17.4 billion) for carbon emissions because of slowing demand for electrical autos, Renault (EPA:) CEO Luca de Meo stated on Saturday.

Automakers face more durable EU CO2 targets in 2025 because the cap on common emissions from new autos gross sales falls to 94 grams/km from 116 g/km in 2024.

“If electrical autos stay at right now’s stage, the European business might need to pay 15 billion euros in fines or surrender the manufacturing of greater than 2.5 million autos,” de Meo informed France Inter radio.

“The pace of the electrical ramp-up is half of what we would want to attain the aims that may permit us to not pay fines,” de Meo, who can also be president of the European Vehicle Producers Affiliation (ACEA), stated of the sector.

Exceeding CO2 limits can result in fines amounting to 95 euros per extra CO2 g/km multiplied by the variety of autos bought.

That might end in penalties of lots of of tens of millions of euros for big carmakers.

“Everyone seems to be speaking about 2035, in 10 years, however we must be speaking about 2025 as a result of we’re already struggling,” he stated.

“We must be given just a little flexibility. Setting deadlines and fines with out with the ability to make that extra versatile could be very, very harmful.”