German Chancellor Friedrich Merz and French President Emmanuel Macron have reportedly agreed on a reform of EU automotive policy that keeps the 2035 goal of a 90% cut in CO2 emissions from new cars while giving manufacturers more room to keep selling combustion engine vehicles. The remaining 10% would no longer need to be offset with climate-neutral fuel or low-carbon steel. Cars running only on renewable fuel could count as zero-emission if fossil fuel use is technically impossible, and companies could shift over-delivery in 2030 to 2031 or bank credits from 2029.
