EU to delay 2030 car CO2 target, cut 1M EV sales
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- European Commission proposed extending the 2030 CO2 target deadline by two years (or up to five years if car lobby succeeds), which would lower ambition by 8.5 percentage points and reduce required battery electric car sales by about 1 million.
- Chinese brands BYD and SAIC sold more plug‑in hybrid vehicles in 2025 than BMW and Mercedes combined, and Chinese “extended‑range” EVs are gaining popularity.
- European carmakers such as Renault, VW, and BMW launched dozens of affordable EV models in 2025 after the EU’s 2025 emissions target spurred investment, with the Renault 5 becoming the third‑most‑sold model in the EU last year.
- Emerging‑market EV sales reached roughly 25 % of all new car sales in 2025, with high BEV shares in Indonesia, Thailand, and Turkey surpassing those in the United States.
- EU’s 2030 CO2 target is a key driver for continued EV investment; weakening it would diminish demand for batteries, chargers, and related cleantech components.
Why it matters: Car manufacturers and lobbyists who favor internal combustion engines stand to gain from a relaxed target, while European EV makers, battery suppliers and the broader cleantech ecosystem lose investment incentives, risking a loss of market share to Chinese competitors and a slowdown in Europe’s green‑tech industrial policy.
