Renewables
Franco-german deal on EU emissions sparks industry backlash
Transport & Environment has criticised a recent agreement between France and Germany to alter EU vehicle emission standards.
Key points
- France and Germany agreed to weaken EU car CO2 standards and IAA requirements.
- Clean Transport & Environment warns the move threatens the European battery supply chain.
- The policy could reduce expected EV supply shares in 2030.
What happened
A pact between French and German political leaders to adjust European Union car CO2 standards and Innovation and Automotive Accelerator (IAA) requirements has drawn strong criticism from clean transport campaigners, CleanTechnica reported.
According to Transport & Environment (T&E), the arrangement permits vehicles assembled inside the EU using Chinese-manufactured batteries to qualify for a 'Made-in-EU' designation. The proposals suggest local sourcing thresholds of 10 percent for battery cells during 2028 and 2029, increasing to 20 percent by 2030 and 2031.
Why it matters
T&E stated that over 50 percent of battery cells utilised in electric vehicles across the EU were manufactured domestically in 2025. Critics argue that the new lower thresholds could undermine demand certainty for regional gigafactories and potentially affect future production capacity.
Anna Krajinska, senior director at T&E, stated as reported by CleanTechnica: "Germany and France are making a historic mistake." Analysts suggest the policy might curb projected electric vehicle supply proportions for 2030 from the current 57 percent target down to 43 percent, impacting regional competitiveness against international manufacturers.
What comes next
T&E has urged members of the European Parliament and national governments to oppose any further relaxation of vehicle carbon standards. The organisation advocates for stricter 'Made-in-Europe' criteria and higher electrification mandates for large corporate vehicle fleets to support regional battery manufacturing demand from 2027 onward.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
27.8% of electricity in the world was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
