European Carmakers Push for Flexibility in CO₂ Targets as Pressure Eases

Europe’s automotive industry is pushing back against some of the most ambitious climate policies in the world, arguing that the road to zero emissions must be more flexible. Major players, including Mercedes-Benz and automotive supplier Schaeffler, have joined forces with other industry groups to urge the European Union to rethink its 2035 target mandating a 100% reduction in CO₂ emissions from new vehicles.

In a letter addressed to European Commission President Ursula von der Leyen, the companies emphasized that while they share the long-term vision of a carbon-neutral future, the current framework is out of step with real-world conditions. They cite technological limitations, uneven infrastructure development across member states, and economic headwinds as barriers to achieving full electrification on the timeline set by Brussels.

The appeal comes at a time when regulatory pressure on the auto sector has slightly eased. Policymakers are recognizing that the transition to electric vehicles (EVs), while essential, is not without challenges—from the scarcity of raw materials like lithium and cobalt to the slow rollout of charging networks in rural and less affluent regions. Consumers, too, remain divided, with high upfront costs and concerns over driving range deterring many from making the switch.

Industry leaders are advocating for a more diversified approach. Alongside EVs, they argue, hybrids, hydrogen-powered vehicles, and synthetic fuels should play a role in reducing emissions. These technologies, they contend, can serve as transitional solutions while infrastructure and supply chains for electric mobility mature.

The debate is set to intensify in the coming weeks, with a high-level industrial meeting scheduled for September 12. The gathering is expected to bring together policymakers, manufacturers, and environmental advocates to assess whether the 2035 target should remain fixed or be adjusted to reflect market realities.

Environmental groups, however, caution against watering down the EU’s climate ambitions. They argue that relaxing targets could undermine Europe’s leadership in green technology and delay critical action to curb emissions. For them, the challenge lies not in loosening the rules but in accelerating investment in clean energy and charging infrastructure to make widespread electrification feasible.

For automakers, the stakes are high. Billions have already been invested in EV development, yet profitability remains elusive as companies juggle the costs of transformation with sluggish consumer adoption. Balancing innovation with financial viability is becoming increasingly difficult, especially for smaller suppliers that lack the resources of global giants.

The outcome of this debate could reshape Europe’s automotive landscape for decades. A more flexible regulatory framework might allow carmakers to adapt at a sustainable pace, while still keeping climate goals within reach. On the other hand, any softening of targets risks drawing criticism from activists and policymakers committed to bold environmental action.

As the September meeting approaches, one thing is clear: the future of mobility in Europe will be shaped not just by technological breakthroughs, but by the ability of regulators and industry to find common ground between ambition and practicality.