A new study warns that delaying Europe's CO2 targets could cost 185,000 jobs by 2035, as electric vehicle growth may not offset traditional automotive job losses.
Study highlights job risks from relaxed emissions rules
A new study by the International Council on Clean Transportation (ICCT) warns that relaxing Europe's CO2 reduction targets for carmakers could lead to the loss of up to 185,000 jobs by 2035. The European Commission is considering adjusting these targets, influenced by pressure from parts of the automotive industry, to allow for more internal combustion engine vehicles after 2035.Three scenarios examined for employment impact
The study, published on October 27, 2026, analyzed the effects of three regulatory scenarios on European automotive employment. Researchers found that a five-year delay in CO2 reduction goals could reduce employment in the studied sectors by 6% by 2035 compared to 2025. Keeping the current targets in place, however, could lead to a small employment increase of about 2%.Electric vehicles may reduce traditional jobs but create new ones
The study notes that electric vehicles require about 30% fewer jobs than traditional cars due to the simpler design of electric motors. However, it suggests that job losses in traditional sectors could be balanced by growth in new areas like battery production, recycling, and charging infrastructure. This balance depends on keeping vehicle manufacturing within Europe.Maintaining current rules could boost European employment
Researchers estimate that if current rules are kept, 68% of electric and plug-in hybrid cars sold in Europe would be made on the continent by 2035. A delay in targets would lower this to 56%, increasing reliance on imports. The study suggests maintaining current rules while supporting local production could lead to a 10% rise in employment, adding 320,000 jobs by 2035.Job gains depend on local production of electric vehicles
The findings align with estimates from the NGO Transport & Environment, which suggests accelerating the shift to electric company fleets could create up to 344,000 jobs by 2030. However, these benefits depend on producing electric vehicles and batteries in Europe, as otherwise, the economic gains might benefit foreign manufacturers.Some countries face higher risk from slower electrification
France, Germany, Italy, Spain, and Poland are among the countries most at risk of job losses if the transition to electric vehicles slows. The study cautions that its projections do not consider factors like automation, digital changes, or global economic shifts. It also notes that protecting current jobs does not guarantee future employment opportunities.
