At the EU level, there are signs of a relaxation of CO₂ fleet limits for passenger cars. An ICCT study now warns that this could cost the European automotive industry up to 185,000 jobs. Notably, the auto industry itself sees jobs at risk primarily due to the strict 2035 target currently in place.

The International Council on Clean Transportation (ICCT) has summarised the impact of current political decisions on CO₂ regulations for passenger cars on employment in the European automotive industry. The title of the 58-page study is: “Powering jobs: employment under the EU’s passenger car CO₂ standards”. The analysts’ core message is that maintaining current targets – i.e. effectively phasing out new internal combustion engine (ICE) vehicles by 2035 – would secure current employment levels. Relaxing the standards at this stage, however, would endanger jobs. Maintaining the current standards, combined with additional instruments (e.g., EU production incentives), could even generate job growth.

The ICCT authors argue that while the currently debated weakening of CO₂ targets for passenger cars by 2035 might temporarily halt job cuts in ICE production, it would slow employment growth in electric vehicle (EV) manufacturing, battery production, recycling and charging infrastructure development. The net result, according to the forecast, would be a “net loss in employment”.

Maintaining the current EU standards, on the other hand, would likely keep employment largely stable until 2035. As the study emphasises: “Although implementation pathways will inevitably lead to a decrease in jobs linked to ICEV production, they will also impact employment associated with battery production, battery recycling, and charging infrastructure.

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