France joins Germany in fight against ban on new cars with combustion engines

France and Germany have agreed on a joint approach to the future of Europe’s automotive industry that envisages further easing emissions rules for new cars. Unlike the European Commission’s proposal, carmakers would not have to offset the remaining emissions if they cut CO₂ emissions by the proposed 90% by 2035. The agreement also expands the scope for other powertrains and opens a debate over whether greater flexibility will help European manufacturers or slow their transition to electric vehicles.

The Commission’s existing proposal envisaged a 90% reduction in CO₂ emissions from new passenger cars and vans by 2035 compared with 2021. Carmakers would have to offset the remaining 10%, for example by using low-carbon steel produced in Europe or synthetic fuels and biofuels made from waste materials.

The Franco-German agreement retains the 90% target but, according to Reuters information cited by Clean Energy Wire, drops the requirement to offset the remaining emissions. The agreement also envisages carmakers meeting emissions-reduction targets over multi-year periods.

France and Germany are also proposing that the so-called utility factor for plug-in hybrids—which determines what share of kilometres they are expected to travel on electricity—remain unchanged until 2030, and that vehicles running on renewable and low-carbon fuels be classified as zero-emission. Exactly how these rules would affect emissions calculations will depend on the final version of the European legislation.

Support for the “Buy European” rule

Paris and Berlin are linking changes to emissions rules with support for European manufacturing. Germany is set to back France’s call for “Buy European” rules that would give preference to products made in the EU in public procurement, auctions and the awarding of subsidies. In practice, this is an attempt to combine looser conditions for carmakers with incentives for manufacturing and supply chains in Europe.

Until now, the two countries had been on opposite sides of the dispute over automotive rules. Berlin called for greater flexibility, while Paris opposed further weakening of emissions targets and advocated European preferences in public support. France’s change of position could therefore shift the balance in EU negotiations. However, any final agreement must be considered by both member states and the European Parliament.

Slowing the transition to electric vehicles

The proposal has drawn criticism from opposition parties and environmental organisations. Katharina Dröge, co-chair of the German Greens’ parliamentary group, called the agreement a source of chaos and uncertainty for the market and consumers, while saying China was rapidly moving ahead. Critics fear that frequent changes to the rules will make it harder for manufacturers and customers to decide on investments in electric mobility.

Transport & Environment called the agreement a “historic mistake” and warned that slowing the transition to electric vehicles comes at a time when Europe’s automotive industry is facing competition from Chinese manufacturers and drivers are paying high prices for petrol and diesel. Its concern is that regulatory easing could delay investment in batteries and other technologies that are now crucial to automakers’ competitiveness.

Greenpeace Germany urged the European Parliament to reject the Franco-German proposal and retain the existing rules. The organisation said renewable and low-carbon fuels would be expensive and unavailable in sufficient quantities to ensure transport meets its climate targets. The German Steel Federation, meanwhile, warned that weakening the obligation to offset emissions could reduce the incentive to use low-carbon steel.

The automotive industry itself is also divided in its assessment of the agreement. The German Association of the Automotive Industry (VDA), for example, criticised the proposal as inadequate and called for further changes, particularly to the accounting of renewable fuels and the voluntary use of green materials.