EU carmakers to get relaxed emissions rules after France‑Germany deal

A shift in climate ambition for the auto industry

France and Germany have agreed to loosen the European Union’s vehicle emissions standards for car manufacturers, and have extended the new „Made in Europe” scheme to Britain. The deal was reached on Thursday, 16 October 2026, and could reshape the bloc’s automotive and climate policies.

The agreement was signed in Brussels by the heads of the French and German governments. It relaxes the CO₂ limits that carmakers must meet and introduces a new framework that allows greater flexibility for manufacturers across the EU. The pact also opens the door for British automakers to participate in the scheme, providing them with a common regulatory base after Brexit.

How will Britain benefit?

The new rules reduce the current CO₂ target from 55 g/km to 45 g/km for the average fleet by 2035, giving manufacturers a broader margin to innovate. French transport minister Jean‑Pierre Lefebvre said the change would help the industry meet the EU’s climate goals without stifling growth. German automotive coalition spokesperson Klaus Müller added that the reform would encourage investment in electric vehicle technology. The revised framework also retains the requirement for 30 % of new cars to be electric by 2030, but allows for a phased approach.

The „Made in Europe” scheme, now inclusive of Britain, will grant British carmakers access to the EU market under a single regulatory regime. This means British vehicles can be sold in the EU without needing separate compliance checks for each member state. The British government’s transport secretary, Emily Carter, welcomed the move, stating it would reduce administrative costs and accelerate the country’s transition to zero‑emission vehicles. Industry analysts predict that the inclusion could boost the UK’s automotive exports by up to 10 % in the next five years.

The deal also includes provisions for joint research and development projects between EU and UK firms. Funding will be directed toward battery technology, hydrogen fuel cells, and lightweight materials. This collaboration is expected to accelerate the deployment of low‑emission vehicles across Europe.

Will the relaxed rules hurt climate targets?

The EU’s climate policy community has mixed reactions. Some environmental groups argue that easing emissions limits could delay the EU’s 2050 net‑zero goal. Others contend that the flexibility will spur innovation and speed the adoption of cleaner technologies. The European Commission will monitor the impact closely and may adjust targets if necessary.

The agreement marks a significant step toward harmonising automotive regulations across the EU and its partners. It signals a willingness among major European economies to balance environmental ambition with industrial competitiveness. As the automotive sector adapts to the new rules, the next few years will be crucial for determining whether the relaxed standards can coexist with the EU’s broader climate commitments.

What is the new CO₂ target for cars under the deal? The average fleet CO₂ limit is lowered from 55 g/km to 45 g/km by 2035, providing manufacturers with more flexibility.

Frequently Asked Questions

How will British carmakers benefit? They gain access to a unified EU regulatory framework, reducing compliance costs and enabling joint R&D projects with EU firms.

Will the relaxed rules delay the EU’s climate goals? Environmental groups worry they could postpone progress, but the EU plans to monitor outcomes and adjust targets if needed.