Toyota suggests more flexible EU CO₂ targets for 2035
Image: Toyota
Toyota is calling on European policymakers to adopt more pragmatism, technology-friendly regulations, and stronger partnerships to ensure the competitiveness of the automotive industry. This call comes amid EU discussions on the Industrial Accelerator Act (IAA) and the automotive package, as well as reviews of the Zero Emission Vehicle (ZEV) mandate in the UK.
The Japanese company emphasizes that it has been developing and producing vehicles, engines, and hybrid systems in Europe for over 60 years, and is investing alongside European suppliers in skills and expertise. “Toyota is not a guest in Europe. We are a European manufacturer, and we want the European automotive industry to succeed,” says Yoshihiro Nakata, President and CEO of Toyota Motor Europe.
Toyota supports Europe’s climate goals “unconditionally,” but calls for a balance between political ambition and realistic conditions. Regulations should be based on actual customer demand and take into account all technologies that help reduce CO₂ emissions. Regarding the Industrial Accelerator Act, the world’s largest automaker welcomes the aim to strengthen Europe’s industrial base but warns against restricting manufacturing to the EU alone. According to the company, this relevant market, together with Britain, Turkey, and Japan, accounts for around 31 million vehicles.
Under the guiding principle of “Made with Europe,” Toyota is committed to recognizing a limited number of free trade and customs union partners based on full reciprocity. The required European value-added threshold is set to be introduced gradually, reaching 70 percent after three years, with key requirements only taking effect starting in 2030. As a basis for calculation, Toyota proposes the value at the factory exit, including engineering, research and development, as well as final assembly. This approach aims to take into account not only the origin of components but also other aspects of European vehicle production.
Toyota calls for moderation in regulation
Toyota considers a 70 percent threshold realistic for overall vehicle sales, rejecting the proposed 85 percent figure. For government procurement, incentives, and corporate fleets, the manufacturer calls for uniform regulations. Fuel cell vehicles should be excluded initially until the market and supply chain develop further.
Even regarding the CO₂ targets for 2035, Toyota calls for greater flexibility for automakers. Projections suggest that battery electric vehicles will account for around 45 percent of new registrations by 2030, while current regulations require a share of over 55 percent. The gap is even larger for light commercial vehicles. Toyota warns that without such flexibility, investments may flow toward meeting regulatory requirements rather than advancing the necessary technologies.
Specifically, Toyota proposes a five-year implementation period from 2028 to 2032 along with a 90 percent CO₂ reduction target by 2035. Additionally, renewable fuels and green steel are to be taken into account through flexible regulations. For light commercial vehicles, the company calls for separate reduction targets of 35 percent by 2030 and 80 percent by 2035, both based on a five-year average calculation.
Vehicles that run exclusively on approved renewable fuels are to be classified as emission-free under a unified EU definition per RED III regulations. If demand or infrastructure development slows down than expected, Toyota advocates for regular reviews of the targets.
"Isolation weakens us. Europe has the skills, people, and reliable partners to take a leadership role. However, legislation must keep up with the pace at which customers are ready and able to embrace this change. ‘Made with Europe’ is our core goal, because together we are stronger," says Matt Harrison, Chief Corporate Officer of Toyota Motor Europe."
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Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.
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