EU Delays Carbon Border Levy Proposals Amid Auto Industry Pressure

The European Union has postponed legal proposals concerning its carbon border levy and a 2035 ban on CO2-emitting cars. Initially slated for December 16, the draft agenda might be delayed further due to pressure from carmakers. The proposals aim to address EU carbon emission targets amidst foreign competition.

The European Union is set to delay its proposals on carbon border tariffs and modifications to a 2035 ban on CO2-emitting cars, previously scheduled for December 16, now potentially pushed further back. This comes amid growing pressure from carmakers and EU member states like Germany and Italy.

Concerns arise from automakers demanding policy adjustments to accommodate slower electric vehicle sales and heightened competition from China. Planned amendments could allow continued sales of plug-in hybrids and combustion engine vehicles running on CO2-neutral fuels beyond 2035.

While industry flexibility is debated, a relaxation of policies would undermine the EU's climate goals, risking increased CO2 emissions by 2050, contrary to the region's net-zero emission commitments.

(With inputs from agencies.)