Automotive CO₂: Paris and Berlin propose relaxing targets in exchange for a "Made in Europe" bonus

A 90% reduction in CO2 by 2035, without compensation for the remainder

According to Netpublic, Emmanuel Macron and Friedrich Merz sealed this compromise on October 16, 2026, on the sidelines of the European summit in Brussels. The Chancellor sees it as "a sign of confidence addressed to the industry". These are not yet European rules.

The negotiating document, dated October 15, sets an effective reduction of 90% of emissions by 2035. The remaining ten percentage points would not give rise to any compensation by manufacturers. Paris and Berlin justify this choice by the growth of renewable fuels.

For 2030, compliance with thresholds would be assessed on average over 2030-2031. Credits acquired in 2029 would remain available thereafter, within a ceiling of 7 g/km per manufacturer. Plug-in hybrids offering at least 80 kilometers of electric range would retain their current utility factor until January 1, 2030.

Public aid linked to European production

Electric cars "Made in Europe" would obtain supercredits, without distinction of size. The coefficient would be 1.2, increased to 1.4 for small models. The use of low-carbon European steel and aluminum would raise it to 1.3 and 1.5. The scheme would likely apply from 2027 onwards.

In return, purchase and leasing aids, as well as public procurement, would be reserved for these models. In 2028-2029, they should be assembled in Europe and integrate at least 70% of European parts, excluding battery. A threshold of 50% would also target electric propulsion and main electronics.

For batteries, at least 10% should integrate three major components produced in Europe, including cells, in 2028-2029, then 20% in 2030-2031. For listed companies in the sector (Stellantis, Renault, Valeo, Forvia, Michelin), the final framework will depend on European negotiations.