Merz advocates for modifications to EU's significant 2035 combustion engine ban

German Chancellor Friedrich Merz is seeking amendments to the European Union's 2035 combustion engine ban following a consensus reached within his coalition. After late-night discussions in Berlin, Merz announced his intention to request extensive changes to the regulation, including the continued allowance of hybrid vehicles beyond the 2035 deadline.

Merz plans to send a letter to European Commission President Ursula von der Leyen to present Germany's updated stance, which comes after months of internal coalition debate. The EU's 2022 decision aimed to eliminate CO2 emissions from new cars by 2035, effectively phasing out petrol and diesel vehicles as part of its climate strategy.

Despite this, mounting criticism from automakers and several EU member states led Brussels to indicate a review of the ban earlier this year. The European Commission is expected to release a proposal on December 10, and Germany intends to push for substantial revisions.

Germany's automotive sector, facing intense global competition and low domestic sales, has expressed concerns over the ban. Merz highlighted in October that the 2035 target should not be treated as a strict cutoff. Many jobs in Germany depend on combustion engine vehicle production, and slow adoption of electric cars threatens carmakers ability to meet CO2 targets.

In the lead-up to February's parliamentary elections, Merz's conservative coalition, comprising the Christian Democratic Union (CDU) and the Christian Social Union (CSU), advocated for reversing the ban. Initially, the Social Democratic Party (SPD) opposed relaxing the restrictions, but co-leader and Vice Chancellor Lars Klingbeil indicated openness to compromise, combining advanced combustion engine technology with expanded electric vehicle support.

In October, a paper from Germany's federal states recommended easing the EU ban, endorsing plug-in hybrid vehicles, electric cars with range extenders, and climate-friendly fuels. Reacting to the coalition agreement, CSU leader Markus Sder expressed strong satisfaction with the new government position.

The accord followed extensive negotiations within the coalition committee, which regularly resolves CDU/CSU and SPD differences. Merz emphasized the importance of balancing the competitiveness of the European automotive industry with climate objectives, advocating for "innovation-friendly and technology-neutral regulation." He expressed gratitude to SPD partners for their efforts in reaching a shared position.

Analysis: Germany's Push for Revisions to the EU's 2035 Combustion Engine Ban

Chancellor Friedrich Merz’s push to amend the European Union’s 2035 combustion engine ban is an important development in the ongoing debate over environmental regulations and the future of the European automotive industry. After months of discussions within his coalition, Merz has signaled Germany’s intent to challenge the EU's stringent targets and advocate for changes that would allow hybrid vehicles to remain on the road beyond 2035. This move follows widespread concerns from both the automotive sector and certain EU member states about the potential economic consequences of phasing out combustion engine vehicles entirely.

At the heart of the German government's position is the need to protect the country’s vital automotive industry. The sector is facing increased pressure from global competition and struggling domestic sales, prompting fears that the 2035 target could jeopardize jobs and market stability. Merz's proposal to allow hybrids and explore alternative fuels aims to strike a balance between environmental goals and economic realities, pushing for a "technology-neutral" approach that allows room for innovation and flexibility in meeting CO2 reduction targets.

The opposition from the Social Democratic Party (SPD) initially complicated efforts to soften the ban, but recent developments suggest that a compromise is possible. SPD co-leader Lars Klingbeil has signaled openness to integrating advanced combustion engine technology with broader support for electric vehicles. This shift, combined with a paper from Germany's federal states advocating for more flexible regulations, indicates that Germany’s position is gaining traction within the coalition. For Merz, the goal is clear: securing an amendment that supports both Germany's economic interests and the EU’s broader climate objectives.

As the European Commission prepares to unveil its revised proposal in December, Germany's call for amendments will likely influence the final regulations. The outcome could have significant implications not just for Germany, but for the entire EU automotive market as it adapts to the transition towards more sustainable transportation. Germany’s stance will continue to be pivotal in shaping the future of European car manufacturing and the continent's approach to achieving its climate goals.

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• Merz pushes for changes to EU's landmark 2035 combustion engine ban