EU Delays Proposals Impacting Climate and Industry Policies

The EU has delayed proposals impacting the 2035 ban on CO2-emitting cars and the expansion of the carbon border tariff to more products. Automakers cite struggles with EV sales and competition from China. Plans to support European industries with an 'Industrial Accelerator' policy also face a postponement.

The European Union's decision to delay pivotal proposals concerning a ban on new CO2-emitting cars by 2035 highlights ongoing negotiations within the bloc. This delay affects the auto industry's ability to plan amid slow electric vehicle sales and competitive pressure from Chinese manufacturers.

The original December 8 release of these plans, now moved to December 16, also includes a postponed expansion of the EU's carbon border tariff to cover products like washing machines. The delay raises questions about the EU's commitment to climate targets, as weakened measures could mean more CO2-emitting vehicles on roads past 2050.

An 'Industrial Accelerator' policy, intended to favor locally made products and support domestic industries against inexpensive imports from China, has also been postponed. This proposal has divided EU member states, with some seeing it as a growth opportunity, while others warn it could deter investment and increase costs.

(With inputs from agencies.)