Leaked: Car Industry’s Latest Demands Could Cost EU Extra €74bn in Oil Imports

The European car industry, represented by the lobby group ACEA, has put forward demands to weaken the EU’s climate targets for vehicle emissions, a move that could significantly delay the transition to electric vehicles (EVs) and increase Europe’s reliance on imported oil. According to an analysis by Transport & Environment (T&E) based on a leaked ACEA position paper, these demands include extending the averaging period for carmakers’ 2030 CO2 targets from three to five years and scrapping the utility factor adjustment for plug-in hybrid vehicles (PHEVs). Such changes would allow manufacturers to sell fewer battery electric vehicles (BEVs) and more polluting combustion engines, potentially stagnating BEV market share at around 21% through the decade instead of reaching the 57% target set by current EU law. The implications of adopting ACEA’s proposals are substantial. T&E estimates that the weakened targets could lead to an additional €74 billion in oil imports between 2026 and 2035, as fewer BEVs would displace less crude oil consumption. Furthermore, the changes could increase CO2 emissions by up to 2.4 gigatonnes between 2026 and 2050, equivalent to more than five years of emissions from the current EU car fleet. The German government has already aligned with ACEA’s position by supporting the prolongation of PHEV sales, a stance criticised for potentially widening the gap between Europe and countries like China, which are advancing more rapidly towards full electrification. Critics, including T&E’s vehicles policy manager Émilie Casteignau Bernardini, argue that the car industry’s lobbying undermines efforts to reduce oil dependency at a time when petrol prices remain high across Europe. She emphasised that delaying the availability of more affordable EVs harms consumers and weakens Europe’s competitiveness in the global automotive market. The debate over the future of vehicle emissions targets is ongoing, with the European Parliament and member states currently considering revisions to the 2035 CO2 reduction goals and the proposed Clean Corporate Fleets law, which aims to boost demand for EVs. ACEA’s demands also include calls to weaken the 2035 target from a 100% reduction in CO2 emissions to just 80%, using a system of credits for carmakers that could allow continued sales of combustion engine vehicles under certain conditions. T&E warns that this could result in BEVs making up only 52% of new car sales by 2035, rather than the full 100% envisaged under existing proposals. The lobby group’s position paper also seeks to reduce the zero and low emission vehicle thresholds and remove caps on bonus credits, further diluting the regulatory push towards electrification. As the EU moves forward with its climate and transport policies, the outcome of these negotiations will be critical in shaping the continent’s automotive future. Maintaining stringent CO2 targets and supporting ambitious fleet regulations are seen by environmental advocates as essential steps to ensure a swift and effective transition to electric