Europe’s EV industry warns against weakening 2035 zero-emissions target

Europe’s electric vehicle manufacturers and charging companies have called on the European Union to stand firm on its 2035 zero-emissions mandate for cars and vans. They warn that any delay would undermine the region’s competitiveness and threaten climate targets.

In a letter signed by more than 150 industry executives, including leaders from Volvo Cars, Polestar and charging operator Fastned, the group urged EU policymakers not to bow to pressure from established automakers seeking to soften the rules.

The letter came in response to recent comments from Mercedes-Benz chief executive Ola Källenius, who said achieving a 100 per cent cut in CO₂ emissions from new cars by 2035 had become unrealistic. He is among a number of senior industry figures who have argued for more flexibility.

Polestar chief executive Michael Lohscheller countered that shifting the goalposts would “undermine both Europe’s climate ambition and its global competitiveness.” Fastned’s chief executive Michiel Langzaal added that billions of euros had already been invested on the basis of the 2035 target and warned that “those investments only make sense if the EU sticks to its plan.”

A new analysis from Transport & Environment (T&E) suggests that most European carmakers remain on course to meet interim CO₂ standards between 2025 and 2027. The report highlights Mercedes-Benz as the only major brand at risk of missing the thresholds, raising the prospect that it could need to pool its emissions with lower-emitting manufacturers such as Volvo and Polestar to avoid fines.

EU officials are scheduled to meet industry representatives on 12 September to discuss the future of vehicle emissions regulation. The talks come at a sensitive moment, with Europe facing strong competition from Chinese EV makers and U.S. manufacturers benefiting from subsidies and trade protections.

Campaigners say the credibility of Europe’s climate policy is at stake. “This target is not just about reducing emissions,” said T&E’s vehicles policy manager Anna Krajinska. “It provides certainty for investment and ensures Europe can compete in the global race to electrify transport.”

Battery prices are continuing to fall and charging networks are expanding, helping EVs capture a larger share of the market. T&E expects electric vehicles to account for more than 30 per cent of European car sales by 2027, up from around 18 per cent this year.

For the EV industry, the outcome of this month’s Brussels meeting will send a signal to investors and consumers alike about whether Europe intends to maintain its course on clean transport or risk losing ground in the global transition.

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10 Sep, 2025