The European Commission has proposed watering down the bloc’s planned 2035 phase-out of new combustion-engine cars, in a move that would permit continued sales of some non-electric models.
The automotive package, which aims to “support the sector’s efforts in the transition to clean mobility”, requires approval from EU governments and the European Parliament.
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According to the Commission, the watered-down proposal “sets an ambitious yet pragmatic policy framework to ensure 2050 climate neutrality and strategic independence while providing more flexibility to manufacturers. It also responds to calls by EU industry to simplify rules”.
“Today’s package maintains a strong market signal for zero-emission vehicles (ZEV) while giving the industry more flexibility to achieve CO2 targets, and supports vehicles and batteries made in the European Union,” the executive arm of the bloc added.
Under the proposal, the target for new cars and vans would shift to a 90% reduction in CO2 emissions from 2021 levels by 2035, replacing the current requirement for all new vehicles to be zero-emission from that date.
Manufacturers would be able to offset residual emissions through measures including the use of lower-carbon steel produced in the EU and synthetic e-fuels or non-food biofuels, including those made from agricultural waste and used cooking oil.
The draft also provides a three-year window from 2030 to 2032 for carmakers to achieve a 55% reduction in fleet-average CO2 emissions from 2021 levels.
The 2030 goal for vans would be reduced to 40% from 50% as the EV uptake in the van segment has been “structurally more difficult”.
Germany and Italy, home to major automotive industries, had pressed for looser rules.
The Commission also put forward a targeted change to CO2 standards for heavy-duty vehicles, adding flexibility to make meeting the 2030 targets easier.
For corporate fleets, the proposal would impose member state-level mandates to encourage large companies to adopt zero- and low-emission vehicles.
Commission President von der Leyen said: “Innovation. Clean mobility. Competitiveness. This year, these were top priorities in our intense dialogues with automotive sector, civil society organisations and stakeholders.
“And today, we are addressing them all together. As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition.”
The softer demand for EVs has hit companies outside the bloc too.
Recently, Ford Motor announced a $19.5bn write-down tied to the cancellation of several electric vehicle models.
