Germany has rejected a proposal by the Italian government to bring forward a review of the 2035 ban on the sale of new internal combustion engine cars.
The European Union last year approved a landmark law that bans the sale of new gas and diesel cars from 2035 and requires all new cars to have zero CO2 emissions.
The EU Commission scheduled a review of the legislation for 2026, to assess hybrid cars and whether their technology had advanced enough for them to be excluded from the ban.
Italy had sought to bring forward that review date.
On Wednesday, German Environment Minister Steffi Lemke said, “Germany will not entertain discussion on potentially watering down the European CO2 emission performance standards ... the German government does not support the Italian government’s proposal.”
Auto manufacturers face tougher CO2 targets in 2025, as the cap on average emissions from new vehicle sales in Europe falls from 116g/km in 2024 to 94 grams/km.
Exceeding CO2 limits can lead to fines of 95 euros per excess CO2 g/km, multiplied by the number of vehicles sold.
That could leave auto manufacturers facing penalties of hundreds of millions of euros.
The looming penalties come as demand for electric vehicles (EVs) has dropped off considerably across Europe. New car sales in the European Union fell 18.3 percent in August to their lowest in three years, according to the European Automobile Manufacturers’ Association (ACEA).
Last month, the ACEA urged the commission to bring forward the review targets to give carmakers some relief.
They said the necessary conditions to boost EV sales—including charging infrastructure, cheaper energy, tax incentives, and raw material supply—are not in place.
German Economy Minister Robert Habeck said he hoped the European Commission will consider a political solution to the issue.
France, Italy, Poland, and Greece are understood to be considering voting in favor of imposing tariffs of up to 45 percent on imports of electric vehicles made in China.
China is accused of subsidizing the manufacture of EVs for export, resulting in artificially low prices.
The European Commission is investigating the allegations and has proposed a series of tariffs, which will be voted on by the 27-member bloc on Oct. 4.
The proposed tariffs range from 7.8 percent for Tesla cars, to 35.3 percent for the Chinese brand, SAIC, and other companies who have been accused of not cooperating with the EU investigation.
The tariffs are on top of the EU’s standard 10 percent import duty for cars.
Under EU rules, the commission can impose final or definitive tariffs for five years unless a qualified majority of 15 EU countries, representing 65 percent of the bloc’s population, votes against the plan.
The EU executive said it is willing to consider alternatives to tariffs, including a price undertaking, which would involve a minimum import price and a volume cap, suggestions that have already been rejected by Chinese automakers.
