EU's Green Car Rules Criticized for Punishing Industry and Consumers

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Automotive Industry,EU Regulations,Green Transition

The European Union's strict emission standards and 2035 ban on new combustion engines, aimed at achieving green goals, are facing criticism for causing job losses, hindering innovation, and increasing costs. The inflexible rules, critics argue, are pushing the European car industry toward failure by neglecting alternative technologies like plug-in hybrids and range extenders. Conservative and far-right lawmakers across Europe are increasingly vocal in their opposition to the EU's ambitious green and digital agendas, claiming they burden citizens and businesses.

The rules were meant to give certainty. To ensure Europe’s car industry hit the EU’s ambitious green goals, in 2021 lawmakers in Brussels set strict emission standards and an effective ban on new combustion engines by 2035. But since then, “quite a lot has happened,” says Benjamin Krieger, secretary-general of the European automotive parts industry body Clepa. “There’s conflict, there was a pandemic.

” Because of regulations like this, it makes it harder to get projects off the ground in Europe, says Borgas. “The speed is gone, also the readiness of anyone to invest is so low . . . it’s so uncertain,” he adds. “This is not a very good business environment.” The German government this month wrote to Brussels seeking to roll back some of the reporting requirements, which they say pose “unreasonable administrative burdens” to companies, according to a letter seen by the FT.

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