Europe’s EV Industry Urges EU to Keep 2035 CO₂ Target

Europe’s electric vehicle industry is pressing the European Union to stand firm on its 2035 deadline to phase out CO₂ emissions from new cars and vans. In an open letter, over 150 industry leaders stressed that delaying the target would slow Europe’s clean mobility transition, increase reliance on fossil fuels, and risk ceding ground to global competitors.

The call comes as policymakers prepare to review the bloc’s 2035 climate rules at a meeting on September 12. While some traditional automakers and suppliers are lobbying for weaker timelines, the EV sector argues that clarity and consistency are critical for sustaining innovation, supply chain investment, and long-term consumer confidence.

Industry representatives warn that softening the target could undermine Europe’s broader climate goals and send mixed signals to markets already grappling with high competition from abroad and rising trade tensions. With interim CO₂ standards for 2025–2027 already in place, the outcome of this debate is set to define Europe’s credibility and pace in the global race for green mobility.

The letter from 150+ EV industry leaders reflects a widening split within European automotive: pure-play EV manufacturers, battery producers and charging-infrastructure operators - whose business cases depend on the 2035 target - versus traditional OEMs and combustion-engine suppliers pushing for extended timelines. The outcome of the September review has material implications for capital allocation across the entire European auto value chain.

The competitive dimension is also central. Chinese EV manufacturers have scaled rapidly and are exporting into Europe at price points that European legacy OEMs struggle to match. Delaying the 2035 target risks trading short-term relief for legacy business models against long-term competitiveness - a trade-off European policymakers will need to weigh explicitly rather than default to via policy uncertainty.

For automotive OEMs, battery manufacturers, charging-infrastructure operators and their financiers, Cognitud's climate action, market intelligence and ESG strategy teams help clients build scenario-based transition strategies robust across different regulatory outcomes, structure capital plans that reflect both the timing risk and the underlying market trajectory, and prepare disclosures aligned with CSRD and ISSB expectations that give investors visibility into how climate-policy shifts translate into commercial exposure.