France and Germany are nearing a deal to set the EU’s 2035 car-emissions target at a 90% reduction from 2021 levels, without further compensatory measures. Their plan would also allow Britain to qualify for the EU’s “Made in Europe” scheme, subject to reciprocity and other conditions.
The Franco-German plan would set the 2035 target for car emissions at a 90% reduction from 2021 levels, without requiring automakers to close the remaining gap through low-carbon steel or alternative fuels. The plan still needs confirmation, and the two countries must win support from other EU members and the European Parliament for it to take effect.
The proposal would extend “Made in Europe” coverage for the automotive sector to the EU’s 27 countries and other European partners that were part of the EU internal market on January 1, 2020, which would include Britain. Inclusion would depend on full reciprocity, alignment with EU investment conditions and EU trade-protection measures. A UK official said inclusion would be good news for Britain’s automotive sector, but that the proposal needed European consensus and its details had yet to be seen.
