German proposals on EU car CO2 rules would slow EV sales, raise oil imports - NGO

Proposed changes by Germany's coalition government parties to European Union CO2 emissions standards for passenger cars would slow electric vehicle adoption, increase oil import costs and raise emissions, according to clean transport NGO Transport & Environment (T&E).T&E said an agreement by Germany's governing parties from April could reduce the share of battery electric vehicle sales in 2035 to between 53 percent and 76 percent, compared to 85 percent in the European Commission's proposed revision of emissions regulations for cars and vans. Existing EU rules aim for 100 percent zero-emission car sales by 2035.Chancellor Friedrich Merz's conservative CDU/CSU alliance had welcomed the European Commission's aim to weaken emissions standards for cars, but called for changes to the proposals. Germany, for example, opposed stricter rules regarding assumptions about the share of electric driving of plugin hybrid cars (utility factor), which would better align the official CO2 ratings with what the vehicles emit in the real world. According to T&E's analysis, the government proposals would increase car emissions by an additional 1.1 billion to 2.2 billion tonnes between 2025 and 2050. In addition, Germany alone could face up to 15 billion euros in extra oil import costs over the next decade because fewer electric vehicles would be on the road. Electric vehicles helped Germany avoid 3.5 billion euros in oil imports between 2015 and 2025, T&E added."We are experiencing the biggest oil crisis in 50 years, yet instead of reducing consumption, the federal government's proposals would lead to billions in additional spending on oil imports," T&E Germany managing director Sebastian Bock said in a statement. Consecutive German governments have called for weaker European CO2 standards for passenger cars. The country's massive automotive sector has struggled to compete internationally, with many companies in the industry still dependent on combustion engine technology. Other EU member states face similar challenges and have also called for a reform, including Italy and Czechia. Proposals by the European Commission are currently being negotiated in the European Parliament and by EU member state governments. T&E said backing the EU's fleet proposals would support Europe's automotive industry, battery production and jobs. Supporting EU-wide electrification targets for large corporate fleets would particularly benefit German automakers as the world's second-largest producers of electric vehicles. Germany's automotive industry is more advanced in its shift towards electric vehicles than public debates suggest, but a minority of laggard companies is skewing the debate and risks slowing the transition, according to a recent survey of car industry managers.

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