Good morning from Berlin, After a meeting with carmakers and trade union representatives on Monday, German Economy Minister Robert Habeck (Greens) joined Italy in suggesting bringing forward a planned 2026 revision of the EU’s CO2 car emission rules. These rules suggest that carmakers should reduce new cars’ average CO2 emissions by 15% by 2025, 55% by 2030 and 100% by 2035, notably by increasing their production of electric cars. If the initiative goes through, it would allow changes to carmakers’ current 2025 deadline to reduce the average emissions of their newly sold cars by 15%, and the industry would avoid multiple billion-euro fines. However, unlike Rome, Habeck defended the EU’s de facto ban on new petrol and diesel cars as of 2035. For his part, leader of conservative opposition CDU (EPP) Friedrich Merz – who eyes Germany’s chancellorship in the 2025 elections and will visit Commission President Ursula von der Leyen next week - said he was in favour of abandoning the de facto ban on combustion engine cars as of 2035. Jonathan Packroff has all the details. In Stockholm, the sluggish demand for electric cars and the EU’s current car emission rules resulted in Swedish battery maker Northvolt announcing on Monday that it will lay off almost a quarter of its workforce. Charles Szumski digs deeper. Meanwhile, the EU-China trade row – which started with the clash on electric vehicles – continues. |