A Franco-German proposal to soften the EU’s 2035 combustion engine phaseout has drawn sharp criticism for undermining climate goals and ceding the electric vehicle (EV) market to China. The draft, which would allow carmakers to meet only a 90% emissions reduction and introduce multiyear flexibility, is seen as a political concession to Germany’s auto industry. It also introduces a new category for renewable-fuel vehicles—provided they’re made in Europe—and includes the UK in subsidy rules under “full reciprocity.” Environmental group Transport & Environment warns the plan will accelerate China’s EV dominance.
German Chancellor Friedrich Merz’s push to extend the life of internal combustion engines is politically expedient but economically shortsighted, critics argue, as it diverts investment from future-ready technologies.
Source: Financial Times Companies · Summarized by HeadlinesBriefing