The European Union is putting more pressure on the auto industry as of last week when the European Commission stated that it plans to require emissions to be reduced by 65% by 2030 and to be fully eliminated by 2035. This is an increase from previous requirements where emissions were expected to be reduced by 37.5% by 2030 and hybrids were expected to remain on the market for the remainder of the decade.
France is concerned that this target will be hard to reach and is lobbying for more time in the phasing out of combustion engines. France has agreed to meet a 55% reduction in emissions by 2030 but believes it will need a $21 billion investment for batteries and charging stations across the country if it has any hopes of meeting the new desired target.
The auto industry has been bracing for increased regulations on emissions, however, estimates are showing that the phasing out of combustion engines could lead to a loss of 100,000 jobs within the auto industry in France, which is over half of the total existing jobs.
The French auto industry is doing what it can to adapt to the new regulations as President Emmanuel Macron continues to advocate for an extension of the desired emissions requirements. It is unclear whether France will be able to gain enough support to alter the new deadlines or if the country will have to bite the bullet and adapt to the new standards.
Source: Bloomberg
