France and Germany want an 80% reduction in CO2. More diesel vehicles after 2035
Emmanuel Macron and Friedrich Merz were to agree on a common position by October 7, 2026, ahead of votes on the EU’s automotive package. France will support softer CO2 limits, while Germany will agree to stricter “Made in Europe” requirements.
At the end of 2025, the European Commission proposed that starting in 2035, manufacturers reduce the average emissions of new cars by 90% compared to 2021 levels, rather than bringing them to zero. This would correspond to a limit of 11 g CO2/km. According to the Commission’s plans, internal combustion engines could still account for 27-29% of new cars after 2035, including plug-in hybrids and range extenders.
Paris yields on CO2, Berlin on production
According to “FAZ” and “Handelsblatt,” France is ready to support further easing of the target. Germany and France plan to propose a CO2 reduction of another 10 percentage points less than what the Commission wants. Taking into account available compensation mechanisms, the required reduction would mathematically be at least 80%. For manufacturers, this would mean the ability to sell more gasoline-powered cars after 2035.
The current proposal suggests that the remaining emissions must be offset through the use of European steel with a lower carbon footprint and climate-neutral fuels. Clean fuels could account for up to 3% of the 2021 reference target, while green steel could account for 7%. However, it is unknown how much such materials and e-fuels will cost in 2035 or whether they will be available in sufficient quantities.
The agreement is also supposed to include a 2030 target of a 55% reduction compared to 2021 levels. The Commission proposed measuring this over a three-year period, but Macron and Merz want a five-year timeframe from 2028 to 2032. This would allow manufacturers to make up for any excess emissions in subsequent years and avoid immediate penalties.
The price of France’s approval is Berlin’s support for stricter “Made in Europe” rules under the Industrial Accelerator Act. Germany previously wanted to include production in Turkey, Vietnam, and Morocco as well. France insists on a narrower definition of European origin, though an exception might be made for the United Kingdom.
The European Parliament has postponed voting
The European Parliament’s Transport Committee was scheduled to vote on the package on October 5, but the deadline has been pushed back by about two weeks. A plenary vote is planned for November. A simple majority in Parliament will be required, along with approval from at least 15 countries representing 65% of the EU’s population in the Council.
The package still includes incentives for small electric vehicles. A car shorter than 4.20 meters will count as 1.3 cars when calculating fleet emissions. For example, one Volkswagen ID. Polo would reduce a manufacturer’s average emission figure more significantly than a larger electric vehicle. The target for trucks by 2030 is set to drop from 50% to 40%, and member states will receive individual requirements regarding the electrification of company vehicles.
The package also includes 1.5 billion euros for the Battery Booster initiative and administrative changes that, according to the Commission, are expected to save companies 706 million euros per year. Truck manufacturers are also set to gain greater flexibility.
Macron and Merz’s agreement has not yet been formally confirmed, and the details remain under negotiation. The Commission still insists that “the future is electric.” However, with the target reduced from 100% to 90%, and possibly even 80%, the path to this future may involve many more gasoline-powered vehicles.
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