European Union (EU) member states are challenging a Franco-German position on 2035 car emissions rules, amid concerns over the bloc’s electric vehicle (EV) transition and Chinese competition, reported Bloomberg.
Germany and France agreed a common position last month that would dilute the EU’s climate-neutrality targets for passenger cars and support domestic manufacturing.
The pact would effectively remove the planned 2035 ban on internal combustion engines and contains no requirements for offsets or compensation.
Opposing states support a more ambitious EV transition to address market share gains by Chinese competitors.
BYD and Chery Automobile accounted for 14.5% of total vehicle sales in Europe last month.
Ireland, which leads negotiations on the dossier, has circulated a compromise plan in response to the divisions.
Under Ireland’s draft, the required emissions reduction for passenger vehicles would be 90% by 2035.
Carmakers would need to offset the remaining 10% through fuel mechanisms and credits for low-carbon steel and aluminium.
The proposal also provides compliance flexibilities for manufacturers facing 2030 car emissions targets and 2025 van standards.
The Irish plan sits between the European Commission’s original proposal and the Franco-German agreement.
“The Irish presidency is committed to reaching agreement on CO2 standards for cars and vans. This is a complex proposal and we are working with member states toward a compromise agreement”, a spokesperson for the presidency was quoted as saying.
EU Climate Commissioner Wopke Hoekstra said last month that continued regulatory targets were the best way to protect European industry, citing higher fuel costs and recovering EV sales volumes.
Ambassadors will meet on 11 November to discuss three proposals ahead of trialogue talks.
Parliament will vote by year-end after its environment committee backed a 95% target for new passenger cars by 2035, allowing up to 7.5% fulfilment through green steel credits.
The Franco-German initiative sought to ease compliance for Volkswagen, Stellantis, Renault, and tier-one supplier Valeo.
Valeo has implemented job cuts and site closures while contending with low-cost competition from BYD and SAIC Motor’s MG brand.
