The European Commission’s recent softening of its stance on new car emissions, allowing for continued gasoline and diesel vehicle production beyond 2035, has drawn cautious support from within the German Social Democratic Party (SPD). SPD MEP René Repasi defended the move, arguing it addresses anxieties among workers in the automotive sector who fear job losses resulting from the previously stringent “zero emissions by 2035” mandate.
Repasi emphasized that while electric mobility remains the unequivocal future, the revised policy provides much-needed clarity and avoids derailing the transition. He stressed the importance of maintaining ambitious climate protection goals, reiterating the need for substantial investment in electric vehicle charging infrastructure and continued industry efforts toward electrification. However, he cautioned against relying solely on carbon offsetting strategies to achieve climate targets.
Despite the deviation from the original strict deadline, Repasi expressed skepticism that the revised regulations would lead to significant planning uncertainty for the automotive industry. He suggested that a misinterpretation – suggesting continued profitability for traditional combustion engines for decades – was unlikely, considering the global trend towards electric vehicles, a direction already being taken by German and European automakers.
The Commission’s proposal, which reduces the emissions reduction target for new cars to 90% and allows for “compensation” through initiatives like low-carbon steel and synthetic fuels, effectively opens the door for plug-in hybrids, mild hybrids and traditional combustion engine vehicles alongside electric and hydrogen vehicles. The adjustments also include easing targets for vans and heavy-duty vehicles, introducing greater flexibility in achieving compliance.
A key aspect of the revised approach involves member state-level targets for company vehicles to incentivize the adoption of low- and zero-emission vehicles by larger companies. Furthermore, accessing public funding will now be contingent on utilizing low-emission vehicles and possessing a “Made in the EU” quality seal. To bolster the transition, the EU is committing €1.8 billion to accelerate the development of a battery value chain within the EU, including €1.5 billion in interest-free loans for European battery cell manufacturers. Critics, however, are already voicing concerns that this relaxation could compromise the EU’s overall climate ambitions and undermine the rapid shift to a fully electric transportation sector. The move underscores a growing tension between stringent environmental targets and the economic realities facing the European automotive industry.