Policy Overview

The EU CO2 Standards for passenger cars and vans (2019/631) legislates increasing CO2 emissions reduction targets for new vehicles up to a 100% emissions reduction target for 2035, the aim is to reduce the climate impact of the automotive sector. The revision was introduced under the EU’s Fit for 55 legislative package after a public consultation was launched to gather stakeholder views in October 2020. In January to March 2025, the EU Commission held a ‘Strategic Dialogue with the Automotive Industry’ to discuss automotive regulations, including revisions to the CO2 standards for light-duty vehicles. Following this, the EU Commission launched a public consultation on the revision of the standards in July 2025.

Policy Passed

After intense negative policy engagement from industry, the EU Commission’s proposal to mandate a 2035 zero-emission CO2 target for all new light-duty vehicles sold in the EU was weakened. Despite an ambitious provisional agreement in line with the Commission’s proposal being reached in October 2022, in April 2023, the EU adopted the policy with an exemption for the sale of combustion engine cars that run on e-fuels to continue after 2035. This last minute development, likely prompted by intense industry engagement, weakened the ambition of the regulation by allowing the long-term sale of ICE-powered vehicles in the EU beyond 2035.

Policy Review

Following a Strategic Dialogue with the Automotive Industry, in March 2025, the EU Commission proposed a weakening of the 2025 15% CO2 reduction target by allowing automakers to meet the target over a three-year average between 2025-27. The amendment was formally approved by the EU Parliament and Council in May 2025. As a result of the Strategic Dialogue, the EU Commission also brought forward the revision of the standards from 2026 to Q3/4 2025. A public consultation was launched in July 2025 which will assess whether to adjust the emissions reduction targets and consider the role of various technologies after 2035.

InfluenceMap Query

GHG Emission Regulation

Policy Status

The act was signed on 19 April 2023 and published in the Official Journal on 25 April 2023. A review of the policy's targets and the role of e-fuels is currently underway with a public consultation open until 10 October 2025.

  • European Parliament: ENVI Committee
  • Rapporteur: Jan Huitema (Renew)
  • European Council: Environment Council

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

European Commission

European Parliament

European Council

Policy Engagement Overview

New Lobbying Trends in 2024-25

The automotive industry ramped up opposition to all elements of the CO2 standards in 2024-25. From late 2024, the automotive industry increasingly advocated for flexibilities in the 15% 2025 target, this included automakers, Renault, Mercedes-Benz, and Volkswagen, as well as industry associations, the European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA). Simultaneously, automaker associations pushed for the 2026 review to be brought forward to 2025, including European Automobile Manufacturers Association (ACEA) and German Association of the Automotive Industry (VDA).

From 2025, the automotive industry was increasingly unsupportive of the 100% 2035 target. In particular, there was consistent advocacy for technology neutrality with regards to the target, which included Mercedes-Benz and BMW, as well as industry associations, the German Association of the Automotive Industry (VDA), the European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA). In addition, VDA advocated for a reduction in the target and a phase-in mechanism.

The utilities and several members of the automotive industry strongly supported maintaining the ambition set in 2023. Eurelectric and Volvo Cars advocated against a review and weakening of the EU 2025 CO2 targets. Volvo Cars, Ford Motor, Iberdrola, IKEA, Uber, Tesco and Maersk strongly supported the 2035 target.

Long-term Lobbying Trends from 2022-23

Some automakers and cross-industry groups opposed a 2035 zero-emissions target and higher ambitions for 2025 and 2030 target dates including associations such as the German Automotive Association (VDA) and European Automobile Manufacturers Association (ACEA). Other major European industry associations continued to oppose the target between May 2022-March 2023, including BusinessEurope and the Federation of German Industries (BDI). In February and March 2023, Confindustria, the VDA, and BDI welcomed last-minute attempts to weaken the EU’s 2035 zero-emission CO2 target in the final stages of negotiations.

Several major automakers also attempted to weaken the target following the Commission’s proposal, including BMW and Stellantis in 2022. In final negotiations Renault, Porsche, a Volkswagen subsidiary and Volkswagen lobbied to include a loophole for e-fuels in 2023.

The energy sector opposed ambitious CO2 standards. Alongside oil and gas association FuelsEurope, companies including Repsol, Eni, Neste and Siemens Energy signed an open letter to policymakers ahead of the 2022 EU Parliament and Council votes calling for a technology open regulation on CO2 emission standards from vehicles. The letter was only signed by one light-duty automobile manufacturer, Mazda.

The utilities and renewable energy sectors supported a zero-emissions CO2 standard in 2035 or 2030 and pushed for a more ambitious 2030 target, including associations Eurelectric and WindEurope and companies Enel, E.ON and Siemens Energy. Iberdrola and EDP supported a 2035 EU zero-emissions CO2 target for cars and vans and Iberdrola opposed the use of e-fuels to meet the zero-emissions target.

The inclusion of road transport in the EU Emissions Trading System was pushed by automotive associations to replace ambitious CO2 targets for light-duty vehicles, including the European Automobile Manufacturers Association (ACEA) and the German Automotive Association (VDA).

Impacts on Policy Ambition

By considering the potential scenarios in the EU Commission's original Impact Assessment Report for CO2 Standards reform, and comparing this to the final proposal, a gauge of the impact of industry engagement can be taken.

EU Commission Proposal

  • CO2 Targets: The proposal would increase existing GHG emission reduction targets to at least 55% by 2030, up from 37.5%, and introduce a zero-emissions target for cars and vans by 2035. This would effectively phase out internal combustion engine vehicles powered by gasoline and diesel in the EU. This is in line with the higher ambitions set out in the EU Commission’s impact assessment.

  • Shorter term targets: The 2025 CO2 target of 15% was not increased, in line with advocacy positions taken by the automotive industry. Additionally, the option for interim targets (for example, in 2027) was not included in the proposal.

  • ‘Automotive Action Plan’: In March 2025, the EU Commission proposed measures to significantly weaken the 2025 CO2 targets, by allowing automakers to meet the 15% CO2 reduction target over a three-year average between 2025-27.

EU Parliament Position

The EU Parliament adopted its position on the CO2 standards revision, reaching a compromise position which closely resembles the EU Commission's proposal.

  • 2035 CO2 Targets: The target of 100% by 2035 was maintained, an amendment to weaken 100% 2035 target to 90%, in line with intense lobbying to weaken the 2035 target, did not pass.

  • Shorter term targets: An effort by the Rapporteur to increase the ambition of the file by increasing the 2030 target to 75% from 55% was not adopted, however the 2025 target was increased to 20% from 15%. In May 2025, the EU Parliament approved the EU Commission's proposal to weaken the 2025 target through a three-year compliance average between 2025-27.

EU Council Position

The EU Council adopted its position on the CO2 standards revision maintains the EU Commission’s proposed 2035 CO2 zero-emissions target that would effectively phase out the sale of ICE vehicles

  • 2035 CO2 Target: Despite resistance from a group of countries, including Germany and Italy, that insisted on greater flexibility, the EU Council proposal preserved the 2035 target.

  • Shorter term targets: In May 2025, the EU Council approved the EU Commission's proposal to weaken the 2025 target through a three-year average between 2025-27.

  • Short term review: The Council agreed to a review of the legislation in 2026 to assess the market and prospects for plug-in hybrid vehicles and e-fuels, which parts of the industry suggest can play a role alongside electric vehicles.

Policy Weakened

In October 2022, the European Commission, Council and Parliament reached a provisional agreement on the Commission’s original proposal, which includes a 2035 zero-emission CO2 sales mandate for new cars and vans. It also includes a 55% CO2 emission reduction target for new cars and 50% for new vans by 2030 compared to 2021 levels. However, in February 2023, the German government, supported by Italy, Poland and Bulgaria, u-turned on its initial support for an EU 2035 zero-emissions CO2 target. It warned that it would abstain in the final vote unless the policy includes a clause to permit the use of e-fuels. In April 2023, the EU adopted the policy with an exemption for the sale of combustion engine cars that run on e-fuels to continue after 2035. In March 2025, the EU Commission proposed an amendment to the 15% CO2 reduction target which would allow automakers to meet the target through an average over three years between 2025-27. The EU Parliament and Council approved the amendment in May 2025 which significantly weakened the ambition of the 2025 target.

InfluenceMap Query

GHG Emission Regulation

Policy Status

The act was signed on 19 April 2023 and published in the Official Journal on 25 April 2023. A review of the policy's targets and the role of e-fuels is currently underway with a public consultation open until 10 October 2025.

  • European Parliament: ENVI Committee
  • Rapporteur: Jan Huitema (Renew)
  • European Council: Environment Council

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

European Commission

European Parliament

European Council

Live Lobbying Alerts

Mercedes-Benz CEO and European Automobile Manufacturers Association President, Ola Kallenius, suggests EU's 2035 100% CO2 emissions reduction target could "collapse" the European car market

14/08/2025

Mercedes-Benz CEO and European Automobile Manufacturers Association President, Ola Kallenius, has opposed the EU's 2035 100% reduction target for light-duty vehicles. In a 11 August article, Reuters reported that Kallenius called for a "reality check" on the target as it may "collapse" the European car market. Kallenius argued that consumers would rush to buy petrol and diesel cars in the run-up to 2035 and that the EU should instead focus on tax incentives and cheap electricity prices. This comes whilst the EU CO2 standards for light-duty vehicles is under review, with a public consultation currently open.

The German Association of the Automotive Industry (VDA) unsupportive of EU's 2035 ICE phase-out

12/06/2025

In a press release published on 5 June 2025, the German Association of the Automotive Industry (VDA) proposed a 10-point plan for climate-neutral mobility ‘from the perspective of the German automotive industry’. In the proposal, VDA suggested that the current EU CO2 standards for light and heavy-duty vehicles “cannot be met,” and was unsupportive of the 2035 phase-out date for light-duty internal combustion engine vehicles. Instead, the association advocated for a technology-neutral approach, with a role for hybrid vehicles and renewable fuels beyond 2035. Regarding the proposal, VDA’s President, Hildegard Muller, suggested the “development and production of combustion engines — in which we are technological leaders — could be kept in Europe,” in a quote published by Politico in June 2025. VDA also advocated for a 90% 2035 emissions reduction target for light-duty vehicles instead of the current 100% target, and called for the respective 2026 and 2027 reviews of the light-duty vehicle and heavy-duty vehicle standards to be brought forward to 2025.

BYD strongly supports UK Zero Emissions Vehicle Mandate and advocates for the EU to maintain its CO2 standards for light-duty vehicles

27/03/2025

In a 20 March news article, the executive vice president of BYD, Stella Li, strongly supported the UK's zero-emission vehicle mandate for its clear target and schedule for electrification. Stella Li advocated for the EU to follow the UK's example by maintaining its CO2 standards for cars, emphasizing that frequent legislative changes create uncertainty for automakers.

Volvo Cars CEO advocates against EU weakening 2025 CO2 standards for cars and vans

20/03/2025

On 5 March, Automotive News reported that Volvo Cars CEO Jim Rowan advocated against the European Union introducing a weaker three-year compliance window to meet 15% 2025 CO2 targets. The CEO further criticized the European Automobile Manufacturers Association (ACEA) industry association, which Volvo Cars left in 2022, for working with EU policymakers to weaken the EU's primary climate policy to decarbonize road transport.

EU Industry does not fully support European Green Deal Regulation Reforms

05/12/2024

In a 22 November joint statement, the Mouvement des Entreprises de France (Medef), the Federation of German Industries (BDI) and the Confederation of Italian Industry (Confindustria) did not appear to fully support previously adopted reforms and regulations under the European Green Deal. The joint statement advocated for reforms to the EU ETS, including delays of implementation until the introduction of the EU Carbon Border Adjustment Mechanism proves "effective," and called for an earlier revision of the EU CO2 emission standards for cars and vans. The industry associations also called for a technology-neutral approach to the deployment of low-carbon energy, which does not clearly align with scientific recommended pathways to achieve net zero by 2050. The joint statement seemed to support additional investments for the green transition in Europe, however without stating a position on the need for stringent regulations and advocating for the review of existing legislation and increased focus of future legislation to better protect industry competitiveness.

European industry associations push to weaken EU light-and-heavy-duty vehicle CO2 emissions standards

31/10/2024

A collective of European industry associations, including Eurogas, FuelsEurope and the European Association of Automotive Suppliers (CLEPA) released a 25 October joint statement pushing to weaken the EU light-and-heavy-duty vehicle CO2 emission standards. The statement called for policymakers to prioritize a technology neutral approach over electrification, citing the need to enable consumer choice and for the market to play a role in decarbonization.

BMW and Renault CEOs oppose EU CO2 standards while Stellantis CEO supports a faster EV transition

17/10/2024

On 15 October, BMW CEO Oliver Zipse opposed the EU's 2035 ICE phase-out date, stating it was "no longer realistic", in comments reported by The Guardian at the Paris Motor Show. Renault's CEO Luca de Meo also appeared unsupportive of the 2025 target in 14 October comments published by Automotive News Europe, urging for a review and emphasizing economic challenges. In contrast, Stellantis CEO Carlos Tavares advocated against weaker targets or delays in 14 October comments reported by Financial Times, and supported a fast transition to electric vehicles.

Renault CEO opposes EU 2025 CO2 target

16/10/2024

In an 1 October Politico article, Luca de Meo, Renault CEO and President of the European Automobile Manufacturers Association (ACEA), reiterated the need to review the EU’s 2025 CO2 emissions reduction target, emphasizing economic challenges and stated that “Youʼre killing the baby at its birth”.

Renault CEO opposes EU 2025 CO2 target

10/10/2024

On 1 October, Luca de Meo, Renault CEO and President of the European Automobile Manufacturers Association (ACEA), reiterated the need to review the EU’s 2025 CO2 emissions reduction target, emphasizing economic challenges and stated that “Youʼre killing the baby at its birth”.

Automakers and utility companies support the EU 2035 100% CO2 emissions reduction standard amidst industry opposition

04/10/2024

In a 30 September joint letter, a range of companies including Volvo Cars, Iberdrola, IKEA, Uber, Tesco, Maersk, Polestar, and the Korea Battery Industry Association strongly supported the EU’s 2035 100% CO2 emissions reduction standard, opposing earlier attempts from Renault, the European Automobile Manufacturers Association and the German Association of the Automotive Industry (VDA) to weaken the regulation. Volvo Cars’ CEO stated that “Electrification is the single biggest action our industry can take to cut its carbon footprint. The 2035 target is crucial to align all stakeholders on this journey and ensure European competitiveness. We urge EU policy makers to focus on what actions we need to take to get there, rather than reopening legislation just agreed on.”

European Automobile Manufacturers Association advocates to two year delay in EU 2025 CO2 emissions targets for cars and vans

20/09/2024

According to a 12 September Bloomberg article, a leaked position paper from the European Automobile Manufacturers Association (ACEA) appeared to advocate for a two year delay in the EU 2025 15% CO2 emissions reduction target for cars and vans, significantly weakening the near-term emissions reduction potential of the policy. In a 14 September Le Monde article, the paper was attributed to Renault CEO and ACEA President Luca de Meo. Additionally, in a 19 Spetember press release, ACEA advocated for “short-term relief” from the 2025 target, and for the 2026 review of the standards to be brought forwards to 2025, alongside emphasizing challenges associated with the standards.

In contrast, Stellantis CEO Carlos Tavares opposed this attempt to weaken the target in 12 September comments, adding that "It would be surreal to change the rules now,". Stellantis left ACEA in 2022 due to misalignments with the association's climate policy engagement.

Volkswagen Chairman and ESG Officer advocates for a slow down of EU ICE vehicle phase-out

12/09/2024

At an 11 September event in Vienna, Volkswagen Chairman and ESG Officer Hans Dieter Pötsch generally supported electrification while strongly emphasizinig associated challenges, such as adequate electric vehicle (EV) charging infrastructure, the electrical grid, and the availability of raw materials and financial incentives. Pötsch appeared to advocate for a delay of the EU’s CO2 emissions reduction targets, saying targets must be “adapted to reality” and that “the e-mobility trend will prevail, but it will take more time.”

Volvo Cars continues to support the EU 2035 ICE vehicle ban

03/07/2024

Through a letter released by the Platform for Electromobility on 12 June, Volvo Cars warned newly elected MEPs against overturning the 2035 zero-emissions target for new cars and vans, arguing that going back on the deal now would put the EU’s 2050 climate goals at risk and undermine its global competitiveness.

Volvo Cars supports 2035 internal combustion engine phase-out date in the EU

27/06/2024

On 6 June, Volvo Cars’ head of EU’s office Céline Domecq supported a 2035 phase-out date for internal combustion engine vehicles in the EU in a press briefing with Transport & Environment. She argued that overturning the ban now would be “terrible” for manufacturers, who have already invested in battery electric vehicles, and that the focus should now be on enabling conditions, rather than challenging the regulation’s ambition.

US fossil fuel associations take legal action against EPA’s Clean Truck Plan and Light Duty Vehicle Emissions Standards

27/06/2024

In an 18 June press release, the American Fuel & Petrochemical Manufacturers (AFPM) stated that it would be taking legal action along with 11 other associations, including the Texas Oil and Gas Association, the Western States Petroleum Association (WSPA) and Consumer Energy Alliance, against the US EPA’s Clean Truck Plan. These groups claim that the EPA does not have the authority to restrict US citizens’ access to internal combustion engine technology. This comes the week after a previous AFPM press release which announced that the same coalition is also taking legal action against the EPA’s Light Duty Vehicle Standards.

Confindustria president opposes EU phase out of internal combustion engine vehicles by 2035

29/05/2024

In a May 24th statement following his election as Confindustria president, Emanuele Orsini stated that the association “does not agree” with the EU’s 2035 100% CO2 emissions reduction standard for new cars and vans, calling instead for technological neutrality. He also urged the next European Commission to focus on industry, competitiveness, and growth.

European Automobile Manufacturers’ Association and Stellantis support the 2035 ICE car ban in the EU

07/03/2024

In a February 26th press conference at the Geneva Auto Show, the CEO of the European Automobile Manufacturers’ Association (ACEA) and Renault, Luca de Meo, spoke in support of the EU’s internal combustion engine (ICE) vehicle ban, saying that European automakers would not challenge the EU’s decision to ban the sales of new ICE cars from 2035. He argued that the industry has already heavily invested in electrification, and going back now would not only be bad for the environment but also a waste of these investments. This echoes Stellantis' CEO Carlos Tavares’ position in a February 24th interview to Welt, who also supported the 2035 ICE car ban, while emphasizing that subsidies were still needed, given the high costs associated with the transition.

BMW criticizes EU 2035 ICE-phase out date over electric vehicle price war with Chinese automakers

07/09/2023

On September 4th, the Financial Times reported that BMW’s CEO, Oliver Zipse, warned that EU plans to ban ICE-powered vehicles is leading to a price war with Chinese rivals for low-cost vehicles, questioning whether the phase-out date could be met, and suggesting that it should be re-evaluated in a review in 2026.

Mercedes-Benz & Renault promote e-fuels in Europe to prolong combustion-engine vehicle sales

07/09/2023

A September 6th Financial Times article stated that executives from Mercedes-Benz and Renault advocated for e-fuels powering combustion engine vehicles, arguing that they should play a key role in the future of the European automotive industry over the full-scale electrification of the sector.

Renault states support for electric vehicles, e-fuels and technology neutral EU climate policy

30/03/2023

The CEO of Renault, and current chair of ACEA, Luca de Meo, was reported by Politico on 22nd March to have stated support for the transition to electric vehicles in Europe in a speech, while also promoting the role of e-fuel powered combustion engine vehicles & the need for "technology neutrality" in EU climate automotive policy.

Cross-sector coalition supports stringent EU CO2 zero-emissions 2035 target

27/03/2023

A joint letter signed by automakers Ford Motor and Volvo Cars and other companies including ABB, Danfoss, Iberdrola, IKEA, LeasePlan, Pfizer, Sanofi, Unilever, Maersk and the European Association for Electromobility (AVERE) advocated for European Union (EU) states to adopt a stringent EU zero-emissions 2035 CO2 target for cars and vans without an e-fuels loophole.

​​Volkswagen expresses support for e-fuels amidst last-minute attempts by EU members states to weaken 2035 zero-emission CO2 target

17/03/2023

​​In a 13th March Financial Times article, Volkswagen CEO, Oliver Blume, appeared unsupportive of the European Union’s planned 2035 zero-emissions target for light-duty vehicles, advocating for a long-term role for e-fuels and stating that “the (German) federal government has to undertake the respective steps”. This statement comes as the German government is undergoing negotiations with the EU Commission, having expressed last-minute opposition to the regulation in its final stages.​

​​Volvo Cars condemns last-minute attempts to weaken the EU’s 2035 zero-emissions CO2 target for light-duty vehicles​

17/03/2023

​​A March 14th AutoNews article reported that Volvo Cars CEO, Jim Rowan, criticized attempts by Germany, Italy and other European countries to weaken the European Union’s 2035 zero-emissions CO2 target through seeking an e-fuel exemption. Rowan condemned the “deeply worrying and disappointing development”, warning that "now is not the time for backtracking and blocking of science-based climate targets for our industry”.​

BDI welcomes weakening of the EU’s 2035 zero-emission CO2 target for light-duty vehicles

10/03/2023

On 28th February, Detroit News reported that the Federation of German Industries (BDI) welcomed last-minute attempts by the German government to weaken the EU's 2035 CO2 zero-emission target for light-duty vehicles, advocating for the inclusion of e-fuels in the regulation.

VDA calls on German government to push for an e-fuels exemption in the EU’s 2035 zero-emission CO2 target for light-duty vehicles

10/03/2023

In a February 2023 press release, German Association of the Automotive Industry (VDA) President, Hildegard Müller, appeared to support the weakening of the EU's 2035 zero-emissions target for light-duty vehicles, calling on the German government to push for an e-fuels exemption in the EU Commission's proposal.

Confindustria welcomes the weakening of the EU’s 2035 zero-emission CO2 target for light-duty vehicles

10/03/2023

In a 6th March press release, the CEO of Confindustria welcomed the watering down of the EU’s 2035 zero-emission CO2 target for light-duty vehicles, calling for a “gradual” transition.

Polestar CEO criticizes last-minute attempts to weaken the EU’s 2035 zero-emission CO2 target for light-duty vehicles

10/03/2023

In a 6th March Automotive News Europe article, the CEO of Polestar, a Volvo Cars subsidiary, appeared to publicly criticize last-minute attempts to weaken the EU’s 2035 zero-emissions CO2 target through the inclusion of an e-fuel exemption in the policy.

Porsche pushes for e-fuels as Germany attempts to weaken the EU’s 2035 zero-emission CO2 target for light-duty vehicles

10/03/2023

On 6th March, it was reported that Porsche, a Volkswagen subsidiary, has been a key player in seeking to exempt e-fuels from the EU’s planned 2035 zero-emissions CO2 target for light-duty vehicles. The Automotive News Europe article suggested that Porsche appears to have influenced the German government’s last minute attempts to weaken the regulation in final negotiations.

Ford criticizes last-minute attempts to weaken EU’s 2035 zero-emission CO2 target for vehicles

10/03/2023

On 6th March, a senior executive from Ford Motor appeared to publicly criticize last-minute attempted changes to the EU 2035 CO2 target agreement’s terms to weaken the proposals stringency, in a statement reported by Politico.

CEO of VW subsidiary Audi urged German government to support existing EU 2035 zero-emission CO2 target for vehicles

10/03/2023

On 3rd March, the CEO of Audi, a VW subsidiary, publicly supported the EU's 2035 zero-emissions CO2 target and urged the German government to not reject the agreement during final negotiations in a statement reported by Reuters.

​​Confindustria stresses job losses from the EU's vehicle CO2 standards, calls for 2026 review​

03/03/2023

​​In a 22nd February press release, Confindustria President Carlo Bonomi highlighted the economic impacts of the European Union's vehicle CO2 Standards and suggested the policy should be weakened during review in 2026. ​

Confindustria stresses negative economic impacts of EU CO2 standards

24/02/2023

In a 16th February press release, Confindustria warned against the economic impacts of the EU Parliament’s approval of CO2 standards favoring electric vehicles, describing the decision as “extremely perplexing” and highlighting job losses in Italy

Anglo American supports EU hydrogen economy regulations with major exceptions

10/02/2023

A Freedom of Information request from a 14th June 2022 meeting between EU Commissioner Kadri Simson and Anglo American yielded insights into Anglo American’s positions on the EU hydrogen economy. While the company supported more ambitious hydrogen infrastructure provisions under the EU Alternative Fuel Infrastructure Regulation, and supported the EU Hydrogen Strategy, Anglo American engaged more negatively on other areas of hydrogen regulation in the EU. This included supporting the EU Renewable Energy Directive’s sub-targets for renewable hydrogen and hydrogen-based synthetic fuels in transport and industry, but expressing unclear positions on strict rules for renewable hydrogen production; supporting the development of hydrogen-powered fuel cell electric vehicles, while calling for a technology neutral approach to decarbonizing transport and not supporting a full phase out of internal combustion engine (ICE) vehicles; and supporting the EU’s carbon dioxide emissions standards for cars and vans while not supporting an ICE phase out.

BDI opposes EU 2035 100% zero-emissions vehicles target

07/11/2022

In an article published on 28th October, the Federation of German Industries (BDI) expressed its opposition to the EU Parliament’s decision to phase out light duty internal combustion engine (ICE) vehicles by 2035. On the same day, the association opposed the ban in a tweet, calling for the use of e-fuels instead.

Stellantis opposes EU 2035 100% zero-emissions vehicle target

21/10/2022

In an October 17th Automotive News Europe article, Stellantis CEO, Carlos Tavares, appeared to explicitly oppose the EU's 2035 100% zero-emissions vehicle target, which would effectively phase out the sale of new ICE-powered light-duty vehicles in the EU, for the first time. Tavares called for the policy to be renegotiated to include a long-term role for hybrid vehicles.

Automotive associations support a 2035 zero-emissions target for EU cars and vans

21/10/2022

A joint letter signed by Volvo Cars, Eurelectric and the European Association for Electromobility, amongst others, urged EU policymakers to adopt a 2035 zero-emissions CO2 target for cars and vans and oppose a loophole granting cars powered by e-fuels to be included in the target.

BDI opposes policies under the EU's Fit for 55 package, supports sustainable fuel quotas

07/10/2022

The Federation of German Industries (BDI) published a position paper on the EU’s Fit for 55 package on 20th September, in which the association laid out its opposition to the 2035 zero emissions vehicle standard proposed by the EU Commission. In addition, the association supported quotas for low-CO2 and climate neutral aviation fuels as part of ReFuelEU Aviation, while emphasizing the risk of carbon leakage and the need for flexibility to compensate for additional costs, and called for "ambitious but realistic" quotas for biofuels in the Renewable Energy Directive (RED).

In the same position paper, BDI advocated for a Carbon Border Adjustment Mechanism (CBAM) test phase which only includes industries that support it, and the maintenance of free emissions allowances in the EU Emissions Trading System (ETS). Furthermore, the entity supported the extension of the EU ETS for road transport and buildings, but not for aviation, and it did not support “inappropriate” Minimum-Energy-Performance-Standards (MEPS) in the Energy Performance Buildings Directive (EPBD), as well as not supporting an energy consumption cap in the Energy Efficiency Directive (EED).

European entities advocate to delay the effective phase-out of ICE vehicles

23/09/2022

On September 20th, a group of European entities, including FuelsEurope, Copa-Cogeca, European Association of Automotive Suppliers, Repsol and Neste released a joint statement which appeared to advocate to delay the effective phase-out of Internal Combustion Engine (ICE) vehicles under the EU’s light-duty CO2 standards. The statement stressed that “recent geopolitical developments” have caused uncertainties for full electrification and called for the Trilogue negotiations to enable “ICE vehicles registered to run exclusively on CO2 neutral fuels” after 2035, as a complementary pathway to electrification.

ACEA opposes EU's proposed ICE phase-out

14/07/2022

In a July 2022 position paper, the European Automobile Manufacturers Association (ACEA) opposed a 100% zero-emissions target (and ICE phase-out date) for heavy-duty vehicles in the EU. ACEA argued that the internal combustion engine “will continue to play an important and long-term role”, and instead called for the use of “fossil-free fuels” as a way to decarbonize the heavy-duty vehicle (HDV) sector. ACEA also emphasized extensive qualifying conditions needed for a transition towards a zero-emission HDV sector, including the expansion of charging and re-fuelling infrastructure and zero-emission vehicle incentives.

Confindustria opposes EU's proposed ICE phase-out

14/07/2022

In a 5th July press release, Confindustria President Carlo Bonomi did not support the proposed Light Duty CO2 Standards, emphasizing negative economic and social costs from the proposed 2035 internal combustion engine (ICE) phase-out timeline

FuelsEurope and en2x support long-term role for ICE vehicles

06/07/2022

In a 1st July press release, FuelsEurope appeared to support a continued role for internal combustion engine (ICE) vehicles by supporting the EU Council’s provision to include a 2026 review for CO2 standards, for which they stated “we will redouble our work to make renewable fuels in land-based transport a significant and constructive contribution to meeting the targets of the Green Deal”. Similarly, in a 1st July press release, Wirtschaftsverband Fuels und Energie (en2x) CEO, Adrian Willig, appeared to support a long-term role for internal combustion engine (ICE) vehicles by urging European politicians to include renewable fuels in future CO2 standards.

Eurelectric supports ICE vehicle phase out by 2035 in the EU

06/07/2022

In a 29th June tweet, Eurelectric expressed support for the EU phase out of internal combustion engine (ICE) vehicles by 2035, describing the EU decision as a win for e-mobility.

Confindustria opposes ICE vehicle phase out by 2035 in EU

30/06/2022

In a 24th June press release, Confindustria stated opposition to the proposed phase-out of internal combustion engine (ICE) vehicle sales by 2035 in Europe, suggesting that the target could be delayed in the EU Council session at the end of June.

Mercedes and Volkswagen appear to support EU's ICE phase-out target

17/06/2022

In communications to the media, both Mercedes-Benz Group and Volkswagen Group appeared supportive of the EU’s announced zero-emissions 2035 CO2 target. Volkswagen called the plan an “ambitious but achievable goal”, while Mercedes-Benz stated "by 2030, we are ready to go fully electric wherever market conditions allow". This appears to leave BMW as the only major German automaker directly opposing the policy.

EU associations oppose the EU's ICE phase-out target

16/06/2022

On 8th June the Federation of German Industry (BDI) stated in a press release that it does not support the complete phase-out of internal combustion engine vehicles in 2035. The entity advocated for a 90% reduction target instead, stating that a lower target would prevent job losses and protect the automotive industry. In a 13th June press release, Confindustria opposed the result of the 8th June EU Parliament plenary vote on CO2 Standards for Light Duty Vehicles which approved a 2035 phase-out of internal combustion engine vehicles, stating that it would put thousands of jobs at risk. On May 31st, FuelsEurope wrote an Op-ed in Politico which appeared unsupportive of the effective ICE ban. FuelsEurope urged policymakers to “recognize new vehicles operated on up to 100 percent renewable fuels” in vehicle CO2 regulations and emphasized supply and cost concerns with electric vehicles.

EU autos split on zero-emissions CO2 target

10/06/2022

On June 9th, European automotive industry associations including ACEA and VDA opposed the European Parliament’s plenary vote on a 2035 zero-emissions CO2 target for cars and vans. ACEA President and BMW CEO, Oliver Zipse, expressed his concern with the outcome and called for a halfway review to define post-2030 targets. Volvo Cars, on the other hand, appeared to support the decision, with CEO Jim Rowan stating: "given the climate crisis we all face, this demonstration of global leadership will help ensure the EU delivers on the goals of the Paris Agreement, which require 100 percent zero tailpipe emission vehicle sales in Europe by 2035".

Companies oppose EU vehicle CO2 target

10/06/2022

On May 31st, a group of companies and industry associations representing the mobility, engineering, and energy sectors, including Mazda, Eni, Siemens Energy, Repsol and Liquid Gas Europe, signed a joint letter to Members of European Parliament (MEPs) strongly opposing a zero-emissions CO2 target for cars and vans ahead of the European Parliament's plenary vote. They instead called for a technology open regulation that recognizes the contribution of sustainable renewable fuels, thus promoting a long-term role for the internal combustion engine over a complete transition to EVs in the EU.

CEOE advocates for technology neutrality in CO2 standards

27/05/2022

In a position statement outlining priorities for the Spanish Presidency of the EU Council, published on 22nd May, the Confederación Española de Organizaciones Empresariales (CEOE) advocated for technology neutrality in the EU’s CO2 standards for light duty vehicles.

BusinessEurope opposes 2035 ICE phase out

18/05/2022

In a letter to members of the EU Parliament's Environment Committee on 10th May, BusinessEurope opposed the proposed 2035 phase out for internal combustion engine (ICE) vehicles on the basis of technology neutrality.

Companies support 2035 diesel and petrol phase out and zero-emissions by 2050

17/05/2022

In a joint letter on 18th May, companies including Ford Motor, Volvo Cars, Iberdrola, Vattenfall, Uber, Unilever, and EDP urged the European Parliament and EU governments to support a 2035 diesel and petrol phase out date for new cars in Europe. The letter also stated support for all cars and vans on the road to reach zero-emissions by 2050.

Eurelectric signs letter advocating for EU vehicles emissions targets

11/05/2022

On 4th May, Eurelectric signed a joint letter urging the EU Parliament’s environment committee to support a 2035 CO2 zero-emissions target (and effective ICE vehicle phase-out) ahead of the Parliament vote on 11th May. Eurelectric also advocated for higher CO2 reduction targets for carmakers in 2025, 2030 and an interim target in 2027, as well as calling for a rejection of loopholes being pushed by the oil & gas industry that would allow carmakers to buy fuel credits to comply with CO2 targets.

Air Liquide supports long-term role for ICE vehicles

04/05/2022

An open letter to EU policymakers on 19th April, initiated by Air Liquide's Head of Innovation Dr. Armin Günther, supported a long-term role for internal combustion engine vehicles in the EU, advocating for EU policies (including the Alternative Fuels Infrastructure Regulation, the Energy Taxation Directive, CO2 Standards for Light and Heavy Duty Vehicles and the Renewable Energy Directive) to support e-fuels and hydrogen over the electrification of transportation. The letter stated that “electromobility will in all likelihood not lead to any significant greenhouse gas reductions in the period up to 2030, which is crucial for the long-term success or failure of climate protection. In particular to, the high CO2 emissions caused by the construction of batteries, the high share of fossil fuels in power generation that will still exist for a long time and the enormous expense for the charging infrastructure.”

CLEPA supports a reduced CO2 emissions target for light-duty vehicles

27/04/2022

In an April 20th press release, the European Association of Automotive Suppliers (CLEPA) supported a vote by the EU Parliament's Committee on Industry, Research and Energy (ITRE) in favour of reducing the CO2 emissions reduction target for light-duty vehicles proposed by the Commission from 100% to 90%, effectively opposing a phase-out of ICE-powered vehicles in the EU.

BusinessEurope opposes the proposed 2035 ICE phase-out target

24/03/2022

In a letter to the Chair of the EU Environment Council on 16th March, BusinessEurope opposed the EU Commission’s proposed CO2 standards to phase out internal combustion engine (ICE) vehicles by 2035 on the basis of technology neutrality in road transportation, as it suggested that it is “impractical and risks large negative employment effects.”

Confindustria opposes the EU's 2035 zero emissions standard

24/02/2022

In a press release, Confindustria appeared to oppose specific EU GHG emissions standards for light duty vehicles, advocating for a weaker 2030 CO2 standard of 45% rather than 55% and a delayed decision on 2035 and 2040 targets, opposing the 2035 zero emissions standard proposed by the EU Commission.

BusinessEurope opposes 2035 ICE phase-out target

24/02/2022

In a letter to the Chair of the EU Competitiveness Council, BusinessEurope appeared to advocate against policies to scale up electric vehicles, instead promoting technology neutrality and investment in all low-carbon technology. It also did not support the EU’s proposed 2035 phase out for internal combustion engines.

BusinessEurope does not support revisions to the EU's CO2 standards for light duty vehicles

02/02/2022

BusinessEurope met with the EU parliament rapporteur on the revision of the CO2 standards for light duty vehicles in January. During the meeting, BusinessEurope stated that it did not support the proposed 2035 and 2027 targets, and emphasized the need for 'technological neutrality'. However, it did advocate for policy to aid the roll-out of charging infrastructure.

BusinessEurope voices opposition to various EU climate policies

02/02/2022

In a letter to the French presidency of the EU in January, BusinessEurope explained that it did not support the EU Commission’s proposed Carbon Border Adjustment Mechanism. It also advocated for carbon leakage protection for indirect and direct emissions and emphasised the need for “sufficient” free allocation of emission allowances in the EU Emissions Trading System. In addition, BusinessEurope stated that it did not support the proposed CO2 standards for light duty vehicles.

BDI opposes vehicle CO2 standards for 2035

14/01/2022

In feedback to the EU Commission in November 2021, the Federation of German Industry appeared to oppose the proposed 2035 CO2 Standards, stating that it “rejects a de facto ban on vehicles with internal combustion engines”.

EU autos split on ICE phase-out

11/11/2021

According to an Irish Times article, Renault has opposed an EU 2035 zero-emissions CO2 target, which would phase out internal combustion engines, citing the high consumer cost of EVs. Meanwhile, the Italian government wants an ICE-vehicle exemption for Ferrari and Lamborghini. BMW chief executive, and ACEA President, Oliver Zipse, has backed the proposed exemption, while Volkswagen (which owns Lamborghini) has opposed it, instead voicing its support for EVs.

Renault oppose ICE phaseout by 2035 in the EU

15/09/2021

Renault are opposing a 2035 phase out date for ICE-powered vehicles in the EU, instead advocating that the date should be delayed until 2040 for hybrids.

Volkswagen push ACEA to support ambitious policies

13/07/2021

A report from Politco Pro suggests that Volkswagen has been lobbying ACEA, the EU autos industry association, to support more ambitious electrification policies & CO2 standards for light-duty vehicles in the upcoming Fit for 55 package. VW will this week announce the group’s new decarbonization 2030 strategy.

Entities Engaged on Policy

The table below lists the entities found to be most engaged with the policy. The entities are ranked by performance band. InfluenceMap tracks over 500 companies and 250 industry associations globally. Each entity name links to its full InfluenceMap profile, where the evidence of its engagement can be found.

Influencemap Performance BandOrganizationPolicy PositionPolicy Engagement Intensity