Obstructive European Automakers Behind the Wheel on Weakened Vehicle Emissions Standards

In the final weeks of 2025, the European Commission published the "Automotive Package," a proposal to significantly weaken one of Europe’s flagship climate policies. Notably, the Commission's proposal withdraws the 2035 100% CO₂ emissions reduction standard, revoking the effective phase-out of new internal combustion engine cars and vans in the EU. InfluenceMap’s analysis of recent engagement on the policy finds that advocacy by a group of highly influential automakers and their industry associations closely aligns with the EU Commission's proposed amendments. As a result, the proposal risks sidelining calls from other automakers and broader industry voices to preserve the policy’s current ambition.

Background

The EU’s CO₂ standards for cars and vans are a cornerstone of the bloc’s climate strategy, setting escalating CO₂ emissions reduction targets for new vehicles in 2025, 2030, and 2035. Following successful recent lobbying efforts to weaken the 2025 target and bring forward the review of the standards from 2026 to 2025, the European Commission launched a public consultation in July 2025 and hosted a series of strategic dialogues on the policy, which were attended by a select group of stakeholders.

In December 2025, following the review process, the Commission presented the Automotive Package, proposing a series of amendments to weaken the standards, which include:

• Lowering the 2035 emissions reduction target from 100% to 90%

• Adding credits for advanced biofuels/e-fuels and low-carbon steel after 2035

• Permitting banking and borrowing to meet the 2030 target from 2030–32

• Lowering the 2030 emissions reduction target for vans from 50% to 40%

• Introducing super credits for small electric cars made in the EU (a compliance flexibility that would allow manufacturers to offset internal combustion engine vehicle production by producing a lower number of EVs)

Proposed Amendments Mirror Negative Advocacy from the Automotive Industry

In the following table, InfluenceMap outlines the amendments that influential automotive industry players requested in the months leading up to the Commission’s announcement in 2025, revealing significant similarities between their advocacy and the final proposal. InfluenceMap found that each of these particular automakers and industry associations advocated for at least two of the key amendments listed above, which were included in the proposal. Notably, ACEA advocated for flexibilities similar to all five amendments featured in the Commission’s proposal.

• All entities listed above opposed the existing 2035 100% target, advocating for a lower standard and/or additional exemptions.

• More specifically, VDA repeatedly advocated for a 90% 2035 target, which the EU Commission ultimately included in its proposal. The 90% target will allow a role for plug-in hybrids and range extenders beyond 2035, a measure for which VDA repeatedly called.

• VDA, ACEA, Mercedes-Benz, Volkswagen, and BMW pushed for a role for "carbon-neutral" fuels and/or "e-fuels" in the CO₂ standards. BMW and VDA explicitly advocated for flexibilities that would permit the use of "carbon-neutral" fuels after 2035.

• VDA, ACEA, Mercedes-Benz, and Stellantis advocated for average-compliance or phase-in mechanisms that closely resemble the Commission’s proposed banking and borrowing flexibility. Similarly, Renault advocated for a “gradual shift” to the 2030 target until 2032, despite otherwise limited recent engagement.

• ACEA consistently advocated for a weaker 2030 target for vans, calling for the target to be lowered from 50% to 30–35%. The Commission ultimately proposed a midway target of 40%.

• ACEA and Stellantis both supported super credits for small electric cars, with the latter calling for super credits in its October 2025 consultation response.

• The Commission also stated that the package aims to “enhance technology neutrality”, closely echoing terminology that VDA, ACEA, Mercedes-Benz, and BMW used in meetings with policymakers.
  
  

The group of automotive companies and industry associations advanced its positions through frequent and sustained engagement with policymakers.

InfluenceMap’s analysis reveals that the six companies/industry associations listed in the table above met with the European Commission 23 times to discuss the EU CO₂ standards for cars and vans during the review process (July to December 2025). These obstructive automotive industry actors were also well represented in the Commission’s strategic dialogues—ACEA, Volkswagen, BMW, and Stellantis all participated in the most recent meeting in September 2025.

Some of the automakers also engaged at the national level. BMW and Volkswagen called on the German government to advocate for credits for renewable or carbon-neutral fuels, with Volkswagen also advocating for vehicles running on carbon-neutral fuels to be classified as zero-emission. Following this engagement, German Chancellor Friedrich Merz wrote a letter to the European Commission in November 2025 urging the Commission to ease the 2035 target and consider a role for biofuels, aligning with industry's asks.

Though a broader group of industry actors supported maintaining the stringency of the standards, their positions were not reflected in the Commission's proposal.

• Volvo Cars, Polestar, and E-Mobility Europe all strongly supported the 2035 100% CO₂ reduction standard and advocated against its weakening. In a December 2025 quote to Reuters, a Volvo Cars representative asserted that weakening the targets “risks undermining Europe’s competitiveness for years to come”. Electric vehicle charging companies were equally vocal in support of maintaining the ambition of the standards, with the CEO of Electra arguing that they “rely on this stability to make informed and effective investments and ask the legislator to not change the rules during the game.”

• Numerous utility companies and fleet operators also advocated against weakening the 2035 target in 2024-25, including Iberdrola, EDF, EDP, IKEA, Uber, Tesco, and Maersk. Many of these companies were signatories of an open letter to President von der Leyen signed by over 200 CEOs that explicitly called to “maintain the full integrity of the 2035 zero-emissions target” and argued that any delay would “erode investor confidence, and permanently hand the advantage to global competitors.”

Risk of Industry Laggards Seizing the Policy Moment to Further Weaken Climate Rules

If adopted, the EU Commission’s proposal will substantially reduce the emissions reduction potential of the policy. Transport & Environment estimates that the Automotive Package could result in 25% fewer battery electric vehicles sold in 2035, and with no new 100% target proposed for a later date, internal combustion engine vehicles could be sold indefinitely. The International Council on Clean Transportation projects that the reduced uptake of electric vehicles could lead to an 18% increase in CO₂ emissions from cars in the EU from 2028–2050 compared to projected emissions over that period under the current regulation.

Though the Commission’s proposal embraces many of the automotive industry’s demands to dilute the standards, the sector’s industry associations have since pushed for further weakening. As reflected in the press releases copied above, ACEA characterized the proposal as a “first step” that needs “more decisive measures,” while VDA’s president labeled the package as “disastrous” and urged further concessions for plug-in hybrid electric vehicles. Some automakers have conveyed a similar reaction, with the CEO of Stellantis stressing concerns over the “various caveats attached to the flexibilities" and a representative of Mercedes-Benz echoing ACEA’s suggestion that the amendments are a “a step in the right direction towards more flexibility.”

Framing the proposal as a "first step" highlights the risk of ongoing industry pressure to further dilute the standards. Early reactions suggest that forthcoming opposition is likely to focus on the proposed low‑carbon steel requirements and the limited concessions for plug‑in hybrid electric vehicles, in particular the planned tightening of the utility factor. Automakers have previously escalated their negative lobbying efforts after initially weakening EU climate rules, seizing on policy moments to further water down key decarbonization regulations. For example, the same automakers successfully advocated to weaken the 2025 CO₂ target for cars and vans less than a year prior to the most recent package of concessions.

Allowing a similar group of incumbent industry actors to further compromise Europe’s transition to electric vehicles could let Europe fall behind in the global EV race and undermine the stability required to support the economy through the energy transition. As the European Parliament and Council review the proposal, close scrutiny of the rationale behind the proposed amendments will be necessary to ensure the policy is not disproportionately shaped by the most vocal and obstructive industry actors.

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