Germany and France have officially agreed on a modification to the previously planned phase-out of combustion engines. According to a joint declaration released by the two governments on Friday, the change is being implemented to allow for greater “regulatory flexibility” and “technological openness” within the future of the European automotive industry.
The countries are proposing a comprehensive package designed to provide “concrete incentives for investment, research and development, European production capacities, and resilient supply chains.” This initiative aims to enable the European Union to meet its climate targets while simultaneously bolstering the industry’s “technological sovereignty, industrial foundation, and international competitiveness.”
The original EU mandate stipulated that, across the Union, no new combustion engine vehicles should be registered from 2035, with an average CO2 reduction goal set at 100 percent. Last year, the European Commission had proposed lowering this target to 90 percent, with the remaining 10 percent of emissions meant to be balanced through various measures, such as utilizing CO2-poor steel from the EU, e-fuels, or biofuels. The new push from the German and French governments includes a reduction to 90 percent, although notably, this proposal suggests that the residual 10 percent does not need to be offset by mandatory compensating measures.
