In a recent development, Germany has rejected a proposal by Italy to move up the planned EU review of the ban on the sale of new internal combustion engine cars from 2035. The German government cited concerns that the proposal would lower standards and create uncertainty for the industry.
The EU countries approved a law in March 2023 that mandates all new cars to have zero CO2 emissions by 2035, effectively phasing out diesel and petrol engines in favor of electric vehicles. Car manufacturers are facing stricter CO2 targets in 2025, with fines for exceeding limits set at €95 per excess CO2 g/km.
Italian industry minister Adolfo Urso emphasized the importance of not delaying decisions in the automotive sector, as it could lead to competitiveness issues within the EU. The European auto association ACEA has called for an earlier review of the targets to support carmakers by addressing key challenges like charging infrastructure and raw material supplies.
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