In a move that could reshape the future of the European automotive landscape, Italy and Germany are advocating for a significant shift in the European Union’s approach to CO2 emissions standards for cars.
As the bloc gears up to implement a complete ban on new petrol and diesel models by 2035, both nations are mobilizing support among other EU member states to reconsider existing targets and delay the proposed ban.
A Call for Reassessment
During a recent meeting in Brussels, Italian Industry Minister Adolfo Urso announced that Italy and Germany were intent on gathering backing from fellow EU nations to relax the stringent emissions targets set by the EU.
The minister emphasized that achieving the zero-limit ban on tailpipe emissions by 2035 is “certainly” unattainable under current circumstances.
This push comes as the two countries plan to propose at an upcoming EU Council summit that a review clause in the legislation be advanced from its original 2026 timeline to early 2025.
Urso’s remarks echo a growing concern within the automotive sector regarding its future viability, with the minister claiming that the European car industry is in a state of collapse.
“We are facing the prospect of tens of thousands of redundancies in the sector unless the EU alters its course,” Urso warned.
He outlined two possible pathways for the EU: to maintain current targets while creating conducive conditions for the automotive industry to meet them, or to postpone the objectives altogether if the first option fails.
The Political Backdrop
This plea from Italy and Germany is reflective of broader frustrations within the EU regarding the ambitious nature of its environmental targets.
Italian Prime Minister Giorgia Meloni has previously denounced the 2035 ban as “ideological madness,” a sentiment that resonates with many in the automotive sector.
Just days before Urso’s statement, the European Automobile Manufacturers’ Association (ACEA) called for a postponement of stricter emissions limits in response to a significant decline in electric vehicle sales.
The ACEA, which represents major car manufacturers including BMW, Ford, Renault, Volkswagen, and Volvo, reported a troubling drop in new car registrations.
In August, registrations fell below 644,000, marking an 18% decrease compared to the same month in the previous year.
Sales of electric vehicles, in particular, saw a substantial decline, with their market share plummeting almost a third from the 21% recorded in 2023.
The Case for Relaxation
The automotive lobby’s argument is underscored by an assertion that critical conditions for a successful transition to zero-emission vehicles are currently lacking.
ACEA’s board of directors highlighted the urgent need for an expansive charging and hydrogen refilling infrastructure, a competitive manufacturing environment, affordable green energy, as well as purchase incentives and a stable supply of essential materials, including batteries and hydrogen.
At present, European car manufacturers must ensure that the average emissions of all vehicles sold in a given year do not exceed 115.1 grams of CO2 per kilometer.
The EU plans to tighten this limit to 93.6 grams next year, a target that many in the industry view as increasingly challenging amidst falling electric vehicle sales and a market skewed towards larger SUV models.
With the prospect of hefty multi-billion-euro fines looming on the horizon, ACEA has urged the EU to adopt urgent relief measures.
However, the European Commission has maintained a firm stance, suggesting that the automotive industry bears some responsibility for its current predicament.
A spokesperson for the Commission asserted that there are still 15 months left for car sales and emphasized that the targets, set in 2019, were designed with sufficient time for industry adaptation.
The Future of Emissions Standards
Last year, the EU adopted further emissions reduction deadlines, effectively declaring that only vehicles emitting no CO2 would be permissible for sale within its borders by 2035—a de facto prohibition on petrol and diesel models.
However, Germany’s last-minute negotiation efforts resulted in a clause that mandates a review in 2026 regarding the potential allowance for the continued registration of vehicles powered by synthetic “low-carbon” fuels, providing a possible lifeline for internal combustion engines.
The automotive industry is eager to see this review—and a similar assessment for heavy goods vehicles slated for 2026—moved forward to 2025.
In contrast, industrial sectors poised to benefit from the accelerated electrification of Europe’s energy system, including generators and battery manufacturers, are lobbying vigorously for the EU to adhere to its existing emissions targets.
The Road Ahead
The unfolding developments represent a pivotal moment for the European automotive sector, which is navigating a complex landscape of regulatory pressures, market fluctuations, and technological transformations.
The ongoing dialogue between member states and industry stakeholders will play a critical role in determining whether the ambitious EU targets can be achieved or if a recalibration of expectations is necessary.
As Italy and Germany rally support for their cause, the upcoming EU Council summit will serve as a crucial platform for negotiations and discussions.
The outcome may not only influence the future of emissions standards but could also set a precedent for how the EU approaches environmental policies amid shifting market dynamics and technological advancements.
Conclusion
The intersection of politics, industry, and environmental sustainability is at the heart of the debate over CO2 emissions standards in the EU.
The Italian and German push to relax regulations highlights the tensions inherent in ambitious climate policies and the realities facing the automotive industry.
As stakeholders from various sectors weigh in, the European Union stands at a crossroads, with significant implications for its automotive future and broader environmental commitments.
The decisions made in the coming months will undoubtedly shape the trajectory of car manufacturing and sales in Europe for years to come.