The European Commission has reaffirmed that by 2035, all new cars in the EU must have zero CO2 emissions.
To support the automotive industry, the EU will allocate €1.8 billion for battery production and raw material supply chains. The Commission also proposed changing the penalty system: car manufacturers would report emissions every three years instead of annually, though the Czech Republic is pushing for an extension to five years.
Europe’s automotive sector faces weak demand, competition from China, and potential U.S. tariffs. Ursula von der Leyen stated that the EU will support domestic production to avoid reliance on external suppliers. However, experts believe the proposed measures are insufficient to counter Chinese and American competition.