EU Carmakers Aim for 90% Emissions Cut by 2035, Avoid Full Engine Ban
In a significant shift, EU car manufacturers are now required to achieve a 90% reduction in CO2 emissions by 2035. This announcement comes from the European Commission, which has reversed a previous plan for a full ban on internal combustion engine (ICE) vehicles set in March 2023. The decision allows for more leniency while maintaining environmental goals.
New Emission Standards for Carmakers
Manufacturers will have several options to offset the remaining 10% of their emissions. They can utilize low-carbon steel produced in the EU or invest in sustainable fuels, such as biofuels and e-fuels. Additionally, the regulation permits the production of plug-in hybrids, mild hybrids, and ICE vehicles post-2035.
Encouraging Sustainable Technologies
The push for full electric vehicles (EVs) and hydrogen vehicles remains strong. Manufacturers can earn “super credits” for developing small, affordable electric cars within the EU. Climate Action Commissioner Wopke Hoekstra emphasized that this balance allows cost-effective reductions in CO2 emissions while nurturing a market for clean steel.
Flexibility Amid Challenges
Transport Commissioner Apostolos Tzitzikostas praised the decision to lower the emissions target to 90%. He noted this flexibility will offer consumers a choice in automotive technology after 2035. Despite calls for stricter regulations, many manufacturers have urged the EU to reconsider its stance in light of intense competition from China and the U.S.
- Member states like Germany and Italy have also advocated for a reconsideration of the ICE ban.
- Automakers face substantial challenges, including high energy costs and a shortage of car components, particularly batteries.
Volkswagen’s Production Closure
Recent reports indicate that Volkswagen may halt production at its Dresden facility. This move would mark a historic first in the company’s 88-year history, reflecting the pressures faced by traditional manufacturers.
Mixed Reactions to Policy Changes
Peter Liese, a veteran lawmaker from the European People’s Party (EPP), expressed support for the updated EU strategy. He highlighted the need for harmonizing technological and climate neutrality. Sigfried de Vries from the European Automobile Manufacturers’ Association acknowledged the urgency for flexibility but reiterated the industry’s commitment to decarbonization.
Future of Electric Mobility
Conversely, some stakeholders are concerned about the uncertainty this decision introduces for investors. Chris Heron from E-mobility Europe stated that this shift might lead to hesitation in the electric transport market. He called for clear signals and ambitions from policymakers to ensure industry confidence in future investments.
Impact of Political Shifts
The initial decision to ban new ICE vehicle sales by 2035 was part of the European Green Deal, which aimed for climate neutrality by 2050. However, recent political changes have led to a more favorable view towards flexibility in automotive regulations. The upcoming EU elections in 2024 could further influence these discussions.
- The European Parliament has recently leaned towards center-right and far-right parties.
- German lawmaker Manfred Weber criticized the original ban, suggesting it was premature for the industry.
Looking forward, the European Commission’s proposal will be subject to negotiations between the European Parliament and the European Council. The new discussions are scheduled to begin in January 2026, under the forthcoming EU Cypriot Presidency.
