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France and Germany have reached a joint position on the EU Automotive Package on 16 October 2026, calling for greater flexibility in the CO₂ emission performance standards for light-duty vehicles (LDVs), non-binding targets for Clean Corporate Vehicles (CCV), and stronger European production requirements. The agreement seeks to balance the EU’s decarbonisation objectives with the competitiveness of its automotive industry and comes as negotiations on the Package are advancing in the European Parliament.

On the proposal to amend the CO₂ emission performance standards for LDVs, France and Germany propose replacing the 2035 target of a 100% reduction in emissions with a 90% reduction, without requiring manufacturers to compensate for the remaining 10%. They also call for additional flexibility in meeting intermediate targets, including averaging emissions over 2030-2031 and allowing manufacturers to carry forward a limited number of credits generated in 2029. For LDVs, the agreement proposes a five-year averaging period for the 2025 target, reflecting the slower uptake of electric vans.

Regarding the CCV proposal, France and Germany advocate for replacing the Commission’s binding national targets for zero- and low-emission vehicles in 2030 and 2035 with indicative ones.

In the European Parliament, negotiations are progressing along similar lines. On 21 October 2026, the EPP, S&D, and Renew groups have reached a compromise on the CCV proposal, likewise favouring non-binding national targets. However, the compromise would retain the Commission’s proposed Article 4, restricting public financial support to zero- and low-emission corporate vehicles meeting European production requirements, without broadening the proposed exemptions. It would also introduce national implementation plans, updated every two years, whilst leaving the definition of large companies and the proposed target levels unchanged.

The vote in the Parliament’s Environment Committee (ENVI) will take place on 4 November 2026.