Every little bit helps. There is a concern about auto emissions, but car registration tax[0] is proportional to displacement so there is an incentive to buy smaller engines. And of course, fuel is heavily taxed in Europe so there's a big incentive away from larger engines. If you compare something like a BMW 7-Series sold in the US to one sold in Germany, the German model will usually be sold with a smaller engine that costs less to register and much less to operate.

[0] https://kfz-steuer.wiki/en/car-tax-germany/