Germany, France seek softer EU car emissions rules

BRUSSELS

German Chancellor Friedrich Merz and French President Emmanuel Macron have agreed on a joint position to further ease EU car emissions rules, Handelsblatt reported on Oct. 7.

The agreement links Germany’s push for looser emissions limits to French demands for stricter EU production requirements for subsidized electric vehicles. Details remain under negotiation, the newspaper said.

Current EU law requires average carbon dioxide emissions from new cars and vans to fall by 100 percent from 2021 levels by 2035, effectively ending sales of new petrol and diesel vehicles.

The European Commission proposed lowering the target to 90 percent in December 2025, with the remaining emissions compensated through low-carbon steel produced in the EU, synthetic fuels and biofuels.

Berlin and Paris now want an additional 10 percentage points of flexibility without compensation. Combined with the proposed offset options, this could lower the required reduction in tailpipe emissions to 80 percent, allowing manufacturers to sell more combustion-engine vehicles after 2035, Handelsblatt reported.

The two governments also want greater flexibility around the 2030 target, which requires a 55 percent emissions reduction for new cars. They propose assessing compliance over five years, from 2028 to 2032, instead of the Commission’s proposed three-year period from 2030 to 2032.

The longer period would give manufacturers more scope to meet their targets and avoid fines.

Germany needs French support to secure a majority among EU member states, according to the report. In return, Berlin is prepared to accept stricter “Made in EU” requirements under the proposed Industrial Accelerator Act.

France wants public subsidies for electric vehicles to be limited to models largely produced within the bloc.

Lawmakers in the European Parliament’s transport committee are seeking a compromise within the next two weeks, the newspaper said.