Germany’s federal coalition has agreed on a unified national position regarding the EU’s 2035 zero-emission requirement for new cars. The government wants scope for ‘highly efficient combustion engine models’ alongside electric vehicles as the EU reviews its regulation. A formal proposal from Brussels is expected in December.
Germany’s coalition government has agreed on a joint position regarding the EU regulation that will permit only new cars with zero tailpipe CO₂ emissions from 2035.
Following the coalition committee meeting, party sources confirmed that Germany will advocate for additional technological options to be considered in the EU’s upcoming review. The position communicated to the DPA newsagency states that ‘highly efficient combustion engine models’ should remain eligible for registration beyond 2035.
A letter from Merz
German Chancellor Friedrich Merz intends to outline the government’s stance in a letter to EU Commission President Ursula von der Leyen. According to the parties, the aim is to ensure that the upcoming revision of the EU regulation takes account of a broader technological spectrum.
“We will not continue to adhere to this stubborn and misguided combustion engine ban in the EU,” Merz told a regional party conference in Magdeburg. “We must remain a strong industrial location,” he added. “We need every possible measure to help reduce CO2 emissions, but not with bans, not with regulation, not with dying industries, but with state-of-the-art technology,” he insisted.
The government’s internal agreement follows several weeks of negotiation, during which differing views on the role of combustion technology had delayed a unified position.
Postponement?
The European Commission announced earlier this year that it would reassess the 2035 regulation following requests from several member states and industry representatives. A revised proposal was expected on 10 December.
It seems that this date will not be held. The EU Commissioner for Transport, Apostolos Tzitzikostas, told the newspaper De Tijd that they’re working hard on it but that there’s a good chance it will be rather the beginning of next year than December 10.
The existing legislation requires all new cars registered from 2035 to be zero-emission, effectively limiting registrations to battery-electric and hydrogen fuel-cell vehicles. The Merz letter goes further than the Commission wants, which makes 10 December unrealistic.
“Postponement would be good,” Tzitzikostas agrees, “We still want a complete, all-encompassing solution for the problems of the European car industry, the European citizens, and our competitiveness as a whole. A few weeks of postponement don’t make a big difference in these.”
More flexibility
Germany’s coalition argues that the transition should include a broader range of options. A paper adopted by Germany’s federal states in October urged the federal government to secure the ‘future of the combustion engine’ through regulatory measures.
It warned against a ‘strict ban on combustion engine technology from 2035 onward’. The document also highlighted the potential role of ‘alternative climate-friendly drive concepts, climate-friendly fuels and complementary transitional technologies, such as highly efficient combustion engines, plug-in hybrids, and electric vehicles with a range extender’.
The European Commission’s proposal will determine the extent of Germany’s influence in the upcoming legislative process. Further negotiations among EU member states are expected as the regulation progresses through review and potential amendment.
If CO2 regulations are to be relaxed, compensation is required, such as accelerating the ‘greening’ of the professional car market. Other possible measures in the rescue package include a ‘kickstart’ for more European battery production, cheaper EVs (below €20,000), and a minimum requirement for European parts in cars assembled in Europe.
New EV subsidy scheme
Meanwhile, the German federal government also agreed on the framework for a new EV subsidy scheme aimed at lower- and middle-income households, first announced in October. According to a resolution paper following the coalition committee meeting, the program targets households with low and medium incomes.
The document states: “A taxable annual income of €80,000 per household shall serve as the basis for determining eligibility.” The eligibility threshold will rise by €5,000 per child.
The planned subsidy amounts to 3,000 euros. The paper adds that “it increases by €500 per child to a maximum of €1,000”. Households with particularly low net incomes will receive an additional top-up.
The government intends to finalize the program’s complete design by the end of the year, with the launch scheduled for “as soon as possible in 2026”, subject to approval under EU state-aid rules.
