France and Germany came close to an agreement on car emissions

France and Germany are close to an agreement in the automotive sector, according to which the European Union's targets for reducing carbon dioxide emissions from cars will be adjusted by 2035, paving the way for the UK to be recognized as a trusted partner under "Made in the EU" rules. The post France and Germany are close to an agreement on car emissions appeared first on Arjan Ambassador.

According to Ambassador Arjan, the European Commission proposed last year that the amount of carbon dioxide emissions of cars should be reduced by 90% by 2035, compared to the level of 2021, but car manufacturers should use low-carbon steel and alternative fuels to reduce emissions to 100%.

According to the joint plan of France and Germany, which still needs to be approved, the goal of reducing emissions will be set at 90%, and there will be no need for more compensatory measures. This adjusted target is largely in line with the demands of the German automakers.

The joint plan of the two countries also addresses the EU's proposal to apply requirements related to domestic production content and carbon emissions to products purchased through public tenders and purchases, public auctions or subsidy schemes.

France has tried to limit the scope of these products to goods produced within the European Union. In contrast, some other EU members, including Germany, believe that other countries should also be included in the scheme, including countries that have close links with European automotive supply chains or have signed free trade agreements with the EU.

The provisional joint plan between France and Germany states that in the automotive sector, the concept of "Made in Europe" should include the 27 member states of the European Union and other European partners that were part of the Union's internal market on January 1, 2020. This definition also includes England, which left the EU single market at the end of 2020.

However, the joint plan of the two countries stipulates that this inclusion should be subject to an agreement on full reciprocity. Also, continuous coordination with the European Union's requirements on third country investment and compliance with trade protection measures of this Union will also be necessary.

The situation could mean that the UK would have to accept measures taken by the European Union to limit imports of hybrid and battery-electric vehicles made in China.

According to a Reuters report, in Germany, the new target for reducing carbon dioxide emissions may face challenges, as the country's environment minister from the Social Democratic Party has proposed limiting the target to 95% and compensating for the remaining five percentage points through the use of low-carbon steel.