Transport accounts for nearly one-fifth of Japan’s total carbon dioxide emissions, with vehicles making up the bulk of that share. Automotive policy will therefore be central to the government’s target of reducing transport emissions by 35 per cent by 2030 relative to 2013 levels.
The EU offers one influential model for automotive decarbonisation. Its vehicle emissions rules principally use the tank-to-wheel method, which measures carbon emissions only during driving. Based on this method, battery electric vehicles (BEVs) are classed as zero-emission vehicles.
Reflecting this approach, the EU proposed that new cars and vans would be required to meet a zero-emissions standard by 2035, effectively phasing out new gasoline and diesel cars, hybrid electric vehicles and plug-in hybrid vehicles. The measure was adopted in 2023. In practice, the policy strongly favours BEVs.
Many vehicle producers in the EU have been struggling with the transition. Approximately 51,500 jobs were cut in the German automotive sector in 2024 alone. Bavarian Premier Markus Soder criticised the combustion engine ban in September 2025, arguing that such a rapid reduction in emissions is unrealistic.
In response to these criticisms, the EU unveiled a new proposal in December 2025 for the revision of the 2035 combustion engine ban, setting a new target of a 90 per cent cut in carbon dioxide emissions from 2021 levels. Under this proposal, the remaining emissions would be offset by using lower-emissions steel made in the EU and e-fuels or non-food biofuels.
