EU Eases CO2 Rules, Sparking Debate on Auto Industry's Future
Mixed

EU Eases CO2 Rules, Sparking Debate on Auto Industry’s Future

The European Commission’s recent decision to permit continued CO2 emissions from new passenger vehicles beyond 2035 is drawing mixed reactions, with Social Democrat MEP René Repasi defending the move as a necessary measure to alleviate anxieties within the automotive workforce. In an interview with ARD’s “Tagesthemen” Repasi acknowledged the concerns of workers fearing job losses tied to the previously stringent “internal combustion engine” phase-out, stating the revised approach creates “clarity” while maintaining a commitment to climate ambitions.

While steadfast in his belief that electric mobility remains the “future” Repasi conceded the need for increased flexibility within the transition. He cautioned against complacency, emphasizing the continued necessity of investment in electric charging infrastructure and ongoing efforts by automotive companies to embrace electrification. “We cannot achieve climate protection solely through compensation” he stressed, referring to the Commission’s allowance for manufacturers to offset remaining emissions through carbon capture, the use of e-fuels and low-carbon steel produced within the EU.

Critics are concerned that the relaxation of the zero-emission target could erode the EU’s commitment to ambitious climate action and foster a false sense of security within the automotive industry. However, Repasi dismissed such fears, arguing that the change is unlikely to be misinterpreted by industry leaders as a license to sustain traditional combustion engine production for decades. He pointed to the global and particularly European, shift towards electric vehicles, emphasizing that German automakers, among others, are actively participating in this transition.

The Commission’s proposal also includes a reduction in the CO2 reduction target for vans from 50% to 40% by 2030, alongside more “flexible” standards for heavy-duty vehicles. A key element is the plan to implement member-state-specific targets for the adoption of zero-emission and low-emission vehicles by large corporations, linking access to public funding to the deployment of such vehicles and their “Made in the EU” provenance. A further €1.8 billion will be allocated to accelerate the development of a fully EU-based battery value chain, with €1.5 billion in zero-interest loans intended to support European battery cell manufacturers. The effectiveness of this combined approach, balancing the needs of the economy and environmental sustainability, remains a critical point of debate within the European political landscape.