German car industry demands the EU guts its CO2 law, despite climate consequences

Cars in Europe could emit an extra 0.5 to 1.4 Gt of CO₂ of avoidable carbon pollution – an increase of up to 31% compared to the current target – if the EU gives into new demands by the car industry, T&E analysis shows. The German carmaker association, the VDA, wants lawmakers to weaken the bloc’s 2035 climate target and create exemptions from the combustion engine phase-out for plug-in hybrids and a bonus for supposedly low-carbon fuels.

T&E analysed the industry proposal and found that sales of BEVs could range anywhere between 44% and 69%,instead of 100% in 2035. This would severely undermine market certainty and investor confidence, especially for battery and charging investments where Europe is trying to build resilience. This is also likely below where the market would be on its own without any regulation.

T&E said the industry proposal is not a serious document but a ploy to make any weakening of the EU cars law look like the middle ground. The EU Commission recently delayed its 2025 target and is now under pressure to review the 2035 law earlier than planned.

Julia Poliscanova, senior director for vehicles & emobility supply chains at T&E, said: “Give them a finger and they’ll take the whole hand. After crying wolf on the 2025 EU target despite EV sales growing in Germany, the car industry now wants to roll back the 2035 standard before any meaningful work to reach it has begun. Meanwhile, the rest of the world is going electric regardless. The EU cannot afford to let its auto industry fall further behind.”