During this week’s Paris Motor Show, CEOs of major car manufacturers called for a review of the EU’s CO2 emission targets, highlighting the tension between regulatory pressures and industry challenges. While the French minister for the industry and economy hinted at an openness to discuss the 2025 targets, the focus remained on the industry’s push for greater flexibility in emissions regulations.
Carlos Tavares, CEO of Stellantis, acknowledged the gravity of the climate crisis, stating, “What is a tough year compared to the fact that the planet is on fire and my children will suffocate under 50 degrees in Portugal?” However, he was the only executive to mention the climate emergency explicitly. Other CEOs reverted to a familiar refrain, blaming the EU’s car CO2 targets for the industry’s challenges.
In an unexpected move, French minister Antoine Armand hinted at a potential softening of the 2025 CO2 targets. While reconfirming France’s commitment to the 2035 objective of selling only zero-emission vehicles, Armand showed a willingness to be more flexible on the 2026 CO2 reduction objective. This shift in stance raised eyebrows, as it could be seen as a concession to the industry and might ultimately benefit Chinese competitors.
Oliver Zipse, CEO of BMW, went a step further, calling for Europe to cancel its plan to ban new fossil fuel-powered cars from 2035. Zipse argued that this move would reduce reliance on China’s battery supply chain and allow Europe to leverage its technological strengths. He advocated for a new regulatory framework that includes alternative fuels like e-fuels or biofuels and hydrogen fuel cell cars.
“A correction of the 100% BEV target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs less reliance on China for batteries,” Zipse said. He emphasised the need for a strictly technology-agnostic path within the policy framework to maintain Europe’s competitive edge.
Affordable EVs Take Centre Stage
Despite the high-level discussions on emissions targets, the Paris Motor Show was marked by a surge in enthusiasm for new, affordable electric vehicles (EVs). Carmakers showcased a range of cheaper EVs, reflecting a growing optimism that consumers are finally able to access electric vehicles in the €15,000-25,000 range.
Consumers as the Clear Winners
As the Paris Motor Show wraps up, consumers emerge as the clear winners. The EU’s 2025 CO2 targets have been instrumental in pushing manufacturers to prioritise mass-market, affordable EVs, making electric vehicles more accessible to a broader range of buyers. However, the industry’s calls for regulatory flexibility and the French minister’s hints at softening emissions targets raise important questions about the future of Europe’s climate commitments.
