EU Postpones Key Auto and Carbon Tariff Plans Amidst Industry Pushback

The European Union has delayed decisions on a 2035 CO2-emitting car ban and expanding the carbon border tariff. Car manufacturers call for policy flexibility, citing slow EV sales and Chinese competition. Proposed measures are critical to achieving EU climate goals but draw mixed reactions from member countries.

The European Commission has postponed its release of significant proposals affecting the automotive industry and carbon emissions policy. Originally scheduled for Wednesday, the announcements have been moved to December 16, the Commission confirmed.

The auto sector eagerly anticipates these proposals, which could potentially soften the 2035 ban on new CO2-emitting cars. Carmakers and governments like Germany and Italy advocate for flexible policies amid challenges such as sluggish electric vehicle sales and Chinese market competition.

Simultaneously, European officials have delayed introducing plans to expand the carbon border tariff. Some member countries fear additional postponements may impact climate goals and economic stability. Concerns about industrial competitiveness and local investment continue to fuel debates among EU nations.

(With inputs from agencies.)