German court blocks 2030 ban on petrol and diesel cars for Mercedes and BMW

Germany's highest court has rejected attempts to ban Mercedes-Benz and BMW from selling new petrol and diesel cars after 2030. The ruling came after environmental campaigners argued that combustion-engine vehicles should be phased out sooner. Both carmakers welcomed the decision as a step towards clearer business regulations.

The Federal Constitutional Court in Karlsruhe dismissed lawsuits filed by the DUH environmental lobby. The group had pushed for stricter limits, claiming carmakers should adhere to a fixed 'carbon budget'. Judges ruled that no such budget had been assigned to individual companies, upholding earlier court decisions.

The case followed a 2021 landmark ruling by the same court, which found Germany's climate protection laws insufficient. That decision strengthened legal arguments in other European countries, including the UK and France, where similar challenges to combustion engine bans emerged. While no direct legal precedents were set, the ruling influenced debates on emission reduction targets across the EU. Mercedes-Benz and BMW responded positively to the outcome. Both companies stated the decision provided much-needed legal certainty for their operations in Germany.

The court's rejection of the lawsuits means no immediate ban on combustion-engine cars from 2030. Carmakers will continue selling petrol and diesel models under current regulations. The ruling also sets a reference point for future climate-related legal battles in Europe.