France and Germany reach agreement on revised EU automotive emissions targets

France and Germany have reached a strategic agreement aimed at securing the future of the European automotive industry. The deal involves revising the European Union's 2035 climate goals by adjusting carbon dioxide (CO2) emission reduction targets to 90% relative to 2021 levels, effectively abandoning the initial push for a 100% reduction that would have required additional offsetting measures like low-carbon steel or alternative fuels.

The initiative, which remains subject to formal EU adoption, also introduces 'Made in Europe' criteria for public procurement, auctions, and subsidy programs. This framework aims to ensure that next-generation electric vehicles are developed and manufactured within the European Union. Olaf Lies, Minister of Lower Saxony and a Volkswagen supervisory board member, welcomed the agreement, stating that it protects manufacturing jobs and strengthens future markets for battery technology and green steel.

This compromise follows intense pressure from German automakers who had long opposed the stricter 100% threshold. By aligning on this 90% target, Paris and Berlin seek to maintain the competitiveness of European companies while ensuring that sustainability requirements do not lead to industrial decline. The proposal is currently under consideration as part of a broader EU regulatory framework regarding local content and low-carbon footprint criteria.