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17 Dec 2025, 13:16
Jennifer Collins
|
EU

EU eases stance on post-2035 car emissions rules, drawing mixed reactions from Germany

Clean Energy Wire

German chancellor Friedrich Merz and European carmakers welcomed proposed changes to the European Union's post-2035 rules on the sale of new internal combustion engine cars, backing what they described as a more flexible, technology-neutral approach to cutting emissions.

"More openness to technology and more flexibility are the right steps to take so as to better align climate targets, market realities, businesses and jobs," said Merz, adding that regulations shouldn't lead to "more bureaucracy".

The new proposal, which still needs approval from EU member states and the European Parliament, would replace the 2035 deadline to register new combustion engines with a requirement to cut tailpipe emissions by 90 percent. The remaining 10 percent would have to be offset through the use of low-carbon EU steel, e-fuels or biofuels. It also includes incentives aimed at boosting the bloc's battery industry.

The European Commission proposal follows intense lobbying from countries like Germany and Italy as well as many of the continent's automakers, forcing the proposed changes against a backdrop of sluggish car sales, growing competition from cheaper Chinese electric vehicles and a trade war with the United States.

In a statement, the Commission insisted the plans were consistent with the EU's 2050 climate targets but take a "pragmatic" approach. Moving away from a de-facto ban would allow plug-in hybrids, range extenders and internal combustion engine vehicles to play a role beyond 2035, alongside battery-electric and hydrogen-powered vehicles.

Other "key flexibilities" include lowering the 2030 CO2 reduction target for vans to 40 percent from 50 percent, introducing super credits for small, affordable electric cars and setting mandatory national targets for zero- or low-emission corporate fleets. The targets would be tailored to each member state, with national authorities choosing how best to meet them.

German environment minister Carsten Schneider said the proposal gives automakers "greater leeway to manage the transition to the electric future." Germany's car industry association VDA criticised the proposal as "disappointing" and "fatal," saying it would "impose new requirements on the auto industry — for example on the use of green steel or renewable fuels." Such requirements were beyond the industry's control and could leave manufacturers exposed to penalties if expectations were not met, said VDA president Hildegard Müller.

Martin Kaiser, head of Greenpeace Germany, said the EU is gifting Chinese electric carmakers an "early Christmas present" and "sacrificing Europe's climate goals."

Transport is the EU's largest source of greenhouse gas emissions. The sector's emissions have fallen only slightly since 2005.  The Commission's proposals "are expected to slow the momentum of Europe's EV market at a time when global car electrification is accelerating," the International Council on Clean Transportation (ICCT) said in a statement. But it added that proposals on corporate fleet regulations are a silver lining and could help speed up the adoption of zero-emission cars and vans, "increasing their future availability in the second-hand market."

A recent survey by German public broadcaster ARD found a large majority in the country believed the EU should abandon its 2035 ban on the sale of new petrol and diesel cars, with 67 percent saying it was wrong against 28 percent saying it was the correct decision to forge ahead with it. 

All texts created by the Clean Energy Wire are available under a “Creative Commons Attribution 4.0 International Licence (CC BY 4.0)” . They can be copied, shared and made publicly accessible by users so long as they give appropriate credit, provide a link to the license, and indicate if changes were made.
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