German auto industry lobby group VDA said that Europe needs to revisit its environmental standards in order to remain competitive after USA’s withdrawal from the Paris climate agreement.
“The regrettable announcement by the USA makes it inevitable that Europe must facilitate a cost efficient and economically feasible climate policy to remain internationally competitive,” Matthias Wissmann, president of the German auto industry lobby group VDA, told Reuters.
“The preservation of our competitive position is the precondition for successful climate protection. This correlation is often underestimated,” Wissmann said, adding that the decision made by the United States is disappointing.
According to the VDA, which represents companies like Daimler, BMW and Volkswagen, electricity and energy prices are already higher in Germany than in the United States, putting the former at a disadvantage.
VDA’s comment comes after German Chancellor Angela Merkel said that there was no turning back from the 2015 Paris climate agreement.