France and Germany have agreed a joint plan on cars that would soften the European Union's CO2 emission targets for 2035 and open the door for Britain to be treated as a trusted partner under the EU's "Made in EU" rules.
Under the Franco-German plan, CO2 emissions from cars would fall by 90% from 2021 levels in 2035, but automakers would no longer have to close the remaining gap to 100% through compensatory measures such as low-carbon steel and alternative fuels. The softened target is broadly in line with the wishes of German automakers.
The plan also says that for the automotive sector, "Made in EU" should cover the EU's 27 countries and other European partners that were part of the EU internal market on January 1, 2020 — a definition that would include Britain, which left the EU single market at the end of 2020. Inclusion would be subject to full reciprocity and dynamic alignment with EU conditions on third-country investment and trade protection measures.
The deal is provisional and will need European consensus and approval from other EU countries and the European Parliament before it can take effect. British officials welcomed the possible inclusion of Britain's automotive sector while noting that details had yet to be seen.