Germany and France have agreed on a proposed reform of EU automotive policy that would keep the 90% CO2 reduction target for new cars but drop the requirement to offset the remaining 10% through climate-neutral fuels or low-carbon steel. According to Handelsblatt, reported by Anadolu, this could let petrol and diesel cars stay on sale after 2035 if they meet applicable emissions limits. Vehicles running exclusively on renewable fuels could also count as emission-free where technical rules block fossil fuel use. The deal would give automakers more flexibility: excess emissions from 2030 could be offset by reductions in 2031, carbon credits could be accumulated from 2029, and plug-in hybrids would get a more favorable emissions calculation. In exchange, France secured stronger Made in Europe requirements, including purchase incentives and public contracts favoring European-built vehicles, a larger share of European batteries and components, and removal of planned mandatory quotas for electrifying large corporate fleets. British-made vehicles could qualify as European if the UK aligns with EU trade protection standards. The changes still need to pass through the Council of the European Union.
