Upholding the regulation’s 2035 zero-emission target for new cars would maintain current employment levels, with gains possible if paired with measures to support EU-based production.
(Berlin) October 15, 2026 — Weakening the EU’s CO2 standards for passenger cars and vans could cost up to 185,000 jobs in Europe’s passenger car industry by 2035, leaving employment well below 2025 levels, according to a new analysis from the International Council on Clean Transportation (ICCT), an independent non-profit research organization. This is because, despite temporarily stalling job losses in combustion engine production, a weaker regulation would slow job growth in battery electric vehicle production, battery production and recycling, and charging infrastructure installation and maintenance, leading to a net loss in employment overall.
Maintaining the EU’s current standards would instead keep employment broadly stable through 2035, with growth across the battery electric vehicle supply chain generating enough employment to offset job losses in combustion engine production. Pairing the standards with industrial measures that support EU-based production could turn that stability into long-term job growth. (....)