EU Poised to soften 2035 Combustion Engine Ban Amidst Auto industry Pressure
Strasbourg, France – December 16, 2023 – The European Commission is preparing to adjust its ambitious plan to ban the sale of new combustion engine cars by 2035. This shift comes after significant lobbying from Germany, Italy, and the European automotive sector. The proposed change would allow for up to 10% of new car sales to be non-electric vehicles, marking a notable departure from the previously firm commitment.
This potential backtrack represents the EU’s most significant adjustment to its green policies in the last five years. It’s a direct response to concerns raised by automakers struggling to compete with established electric vehicle (EV) manufacturers like Tesla and the growing presence of Chinese EV brands.
Why the Change? automakers Seek Adaptability
Carmakers, including Volkswagen and Stellantis (owner of Fiat), have been advocating for eased targets and reduced penalties for failing to meet them. They argue that maintaining a strict 100% EV target is unrealistic given current market conditions and technological advancements.
Specifically, the industry is pushing for continued sales of:
* Plug-in hybrids: Vehicles combining a combustion engine with an electric motor.
* Range extenders: Cars powered primarily by electricity, but with a combustion engine to extend driving range.
* Vehicles utilizing CO2-neutral biofuels or synthetic fuels: offering a pathway to reduce emissions without fully transitioning to electric.
The European automotive lobby group, ACEA, characterized the situation as a critical moment for the sector, also calling for a reevaluation of intermediate CO2 reduction targets for 2030.
Concerns from the EV Industry & Environmental groups
However, this proposed softening of the ban isn’t without its critics. The electric vehicle industry fears it will stifle investment and ultimately cede further ground to China in the rapidly evolving EV market.
Polestar CEO Michael Lohscheller voiced strong concerns, stating, “Moving from a clear 100% zero-emissions target to 90% may seem small, but if we backtrack now, we won’t just hurt the climate. We’ll hurt Europe’s ability to compete.”
Clean transport advocacy group T&E echoed this sentiment,with Executive Director William Todts arguing the EU is “playing for time while China is racing ahead.” He emphasized that clinging to combustion engines won’t revitalize European automakers.
What Else is on the Table? Supporting the Transition
Beyond the 2035 target,the European Commission is also considering measures to accelerate EV adoption:
* Boosting EV Fleets: Plans are underway to increase the proportion of EVs within corporate fleets,which represent approximately 60% of new car sales in Europe. This may involve mandates for local content in vehicle production.
* New EV Category: A new regulatory classification for smaller, more affordable EVs is being proposed. Thes vehicles would benefit from lower taxes and contribute more significantly towards meeting CO2 targets.
* Enduring Production Credits: Automakers could earn credits towards CO2 targets by adopting more sustainable manufacturing practices,such as using low-carbon steel.
What Happens Next?
The Commission’s proposals require approval from both EU governments and the European Parliament. This process will likely involve intense debate and negotiation as stakeholders weigh the environmental benefits of a swift transition against the economic realities facing the automotive industry.
Ultimately, the outcome will shape the future of transportation in Europe and its position in the global EV market. You can expect further developments on this story in the coming months.
Reporting by Philip Blenkinsop,Editing by David Goodman
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