A new study by the International Council on Clean Transportation (ICCT) warns that relaxing EU CO₂ fleet limits for passenger cars could lead to the loss of up to 185 000 jobs in the European automotive industry. The report, titled Powering jobs: employment under the EU’s passenger car CO₂ standards, evaluates the impact of current and proposed environmental regulations on employment.
Current EU legislation mandates a 15 per cent reduction in CO₂ emissions by 2027 compared to 2021, a 55 per cent reduction by 2030, and a full phase-out of internal combustion engine vehicles by 2035. However, the European Commission’s draft Auto Package from late 2025 suggests weakening these targets, with some parliamentary committees proposing a 95 per cent reduction target by 2035.
The ICCT analysis suggests that maintaining existing standards would keep employment levels stable until 2035, with a potential decline of only two per cent compared to 2025. Conversely, implementing additional industrial measures to boost local production could create approximately 320 000 new jobs, representing a ten per cent increase in net employment.
The study highlights that while weakening CO₂ targets might temporarily protect jobs in traditional engine manufacturing, it would hinder growth in electric vehicle production, battery manufacturing, recycling, and charging infrastructure. The researchers conclude that a five-year delay in standards would result in a net loss of employment across the sector.
