EU Eases 2035 Ban on New Petrol and Diesel Car Sales
The European Commission has recently revised its plan to prohibit the sale of new petrol and diesel vehicles by 2035. Previously, regulations mandated that all new vehicles sold by that date must be “zero emission.” However, due to significant lobbying by carmakers, particularly from Germany, the Commission has introduced a new framework. Under this revised plan, 90% of new cars sold from 2035 will need to be zero-emission, allowing the remaining 10% to consist of traditional petrol and diesel vehicles, along with hybrids.
Shift in Emission Targets
The change comes amid concerns from the European automobile industry. According to the European carmakers association, ACEA, current market demand for electric vehicles is insufficient. Without these modifications, manufacturers could face “multi-billion euro” penalties for non-compliance.
Increased Use of Low-Carbon Materials
As part of the new regulations, carmakers are required to utilize low-carbon steel produced within the EU in their manufacturing processes. Furthermore, an emphasis will be placed on adopting biofuels and e-fuels, which are synthesized from captured carbon dioxide, to mitigate the emissions from petrol and diesel vehicles.
Concerns About the Green Transition
Critics of this adjusted proposal caution that it may undermine the shift towards electric vehicles and weaken the EU’s competitiveness against foreign markets. The green transport advocacy group T&E has urged the UK to maintain its ambitious plans under the Zero Emission Vehicles Mandate. Anna Krajinska, T&E UK’s director, emphasized that the UK must remain steadfast; the current mandate is fostering job growth, investment, and innovation.
Industry Insights
Prior to the announcement, ACEA’s director general, Sigrid de Vries, highlighted the urgency of providing “flexibility” for car manufacturers. She pointed out that the 2030 deadline is approaching, and current market demands do not align with the stringent emission targets.
In the UK, automotive companies have called for enhanced incentives to promote electric vehicle adoption, especially before a 2030 ban on new petrol and diesel car sales. Global auto producers are investing billions to adapt their operations for greener vehicle production.
Responses from Major Automakers
Volvo has asserted that it developed a complete electric vehicle portfolio within a decade and is ready to fully transition away from petrol and diesel. The company warned that relaxing long-term commitments for immediate benefits could harm Europe’s competitiveness.
In contrast, Volkswagen has welcomed the Commission’s draft proposal on new CO₂ targets, suggesting that the flexibility for passenger cars is economically sound. They noted that the plan to support small electric vehicles is a positive development.
The Importance of Policy Stability
Colin Walker from the Energy and Climate Intelligence Unit underscored that stable government policy would encourage investments in charging infrastructure and protect existing investments. Historical examples show that government decisions have significantly influenced the operations of automotive companies in the UK.
Fiona Howarth, CEO of Octopus Electric Vehicles, warned that if the UK alters its goals in response to changes in EU policy, it could harm investor confidence and disrupt the supply chain. Many stakeholders have already committed substantial resources based on the assumption of consistent UK policies.
- New EU plan: 90% of cars to be zero-emission by 2035.
- 10% can be petrol, diesel, or hybrid vehicles.
- Requirement for low-carbon steel in car manufacturing.
- Increased focus on biofuels and e-fuels as alternatives.
- Concerns raised about the impact on electric vehicle adoption.
- UK carmakers calling for better purchase incentives.
The adjustments to the EU’s vehicle regulations reflect the complex balance between environmental goals and economic realities in the automotive sector. The success of this plan will depend on the cooperation of stakeholders across the industry.
