France and Germany propose 90 per cent CO₂ cut for new cars by 2035
Germany and France are set to propose that carmakers cut fleet CO₂ emissions by 90 per cent by 2035, rather than the currently planned 100 per cent - with no requirement to offset remaining emissions. That's according to excerpts from a preliminary agreement paper which also point to stricter "Made in Europe" requirements as the two countries seek to reshape the EU's 'Auto Package'.
Image: Florian Treiß
Last week, _FAZ_ and _Handelsblatt_ reported that French President Emmanuel Macron is abandoning his resistance to a relaxation of the EU fleet CO₂ targets for cars. In return, German Chancellor Friedrich Merz is to move away from his previously defensive stance against overly strict “Made in EU” requirements. While the broad outlines have been agreed upon, further details are still under negotiation, according to EU diplomats cited last week. Spiegel now quotes from the preliminary agreement paper between the two sides, which is to serve as the basis for negotiations at the EU level.
Fundamentally, France and Germany have so far held differing positions on key aspects of the Auto Package. Chancellor Merz and President Macron are now each conceding on one major issue but, in return, receiving support for another core concern. Thus, France is reportedly willing to support a relaxation of the CO₂ fleet targets – even beyond the level proposed by the Commission. In return, Germany is yielding on the planned Industrial Accelerator Act (IAA) and supporting stricter “Made-in-Europe” rules than originally envisaged.
According to the agreement paper, both sides are now proposing that the CO₂ fleet targets for manufacturers should be reduced by 90 per cent by 2035, rather than the previously planned 100 per cent. The remaining 10 per cent would explicitly not need to be offset by manufacturers – at this point, the paper goes beyond the EU Commission’s proposal from last December.
Just over a week ago, _Handelsblatt_ had reported that Germany and France were in favour of a relaxation “by a further ten percentage points without compensation”. In other words: “Together with compensation options, the reduction could mathematically amount to at least 80 per cent.” However, this is apparently not the case. The 90 per cent from the Commission’s proposal is to remain, with the only change being that manufacturers will not have to offset the remaining 10 per cent.
The preliminary agreement paper states: “In light of the significant technological, economic, and geopolitical changes since the establishment of the existing regulatory framework, the automotive package should strike a better balance between climate targets, industrial competitiveness, technological development, and strengthening European value creation.” It also says: “The increasing use of renewable fuels in the existing vehicle fleet would be taken into account. The share corresponding to ten percentage points of residual emissions would therefore not need to be offset by manufacturers.”
Regarding the strengthening of the “Made-in-Europe” approach, both sides state that state subsidies should primarily flow into European car production. “A central element of the package should be a stronger link between public funding and European value creation,” Spiegel quotes from the document. However, the paper does not become more precise on this point.
According to _Spiegel_, initial actors have already criticised the initiative. Susanne Goetz, an officer at the organisation Transport and Environment (T&E), warns: “Germany and France are making a historic mistake.” Europe must become less dependent on crude oil imports and needs affordable electric cars. “But this agreement drastically slows down the sales of electric cars.” There is also scepticism from the Parliament: “This draft is not sufficient,” SPD MEP Tiemo Wölken told _Spiegel_. Less ambition in CO₂ reduction without any compensation makes achieving climate targets in the transport sector “unlikely to impossible”.