European Automobile Industry seeks flexibility in EU CO2 emission compromise

The German Association of the Automotive Industry (VDA) and the European Automobile Clubs (EAC) are calling for greater technological openness following a compromise reached by the European Parliament's industry and transport committees regarding CO2 emission standards for new cars and light commercial vehicles.

The compromise, supported by the EPP, S&D, and Renew Europe groups, proposes that manufacturers must reduce average CO2 emissions by 87.5% rather than 100% starting in 2035. This target can reach a 95% reduction if manufacturers offset the remaining emissions using climate-friendly steel produced in Europe. This framework could allow the registration of internal combustion engines and plug-in hybrids after 2035.

VDA President Hildegard Müller has stated that the current compromise is insufficient, arguing that the industry requires more flexibility to ensure competitiveness and employment. The VDA is advocating for a 90% CO2 reduction target and expanded use of renewable fuels. Meanwhile, the EAC emphasizes the need for consumer choice and clarity, supporting a new category where vehicles running exclusively on approved renewable fuels would be considered emission-free for fleet limit calculations starting in 2030.