The European Commission Adjusts Ban on New Fossil Fuel Vehicles by 2035
The European Commission has revised its ambitious plan to prohibit the sale of new petrol and diesel vehicles by 2035, now mandating that 90% of new cars sold meet zero-emission standards instead of the proposed 100%. This shift, influenced by intense lobbying from Germany’s automotive sector, raises concerns about the European Union’s commitment to electric vehicle adoption and its competitiveness in the global market.
Why It Matters
This adjustment is significant as it highlights the ongoing tension between ambitious environmental goals and the realities of current market demand for electric vehicles. With major car manufacturers calling for leniency, the revised rules could present challenges in the EU’s green transition strategy and affect other regions, including the UK, which is set to phase out fossil fuel vehicles by 2030.
Key Developments
- The European Commission will require 90% of new vehicles sold by 2035 to be zero-emission.
- The remaining 10% may include traditional petrol, diesel vehicles, and hybrids.
- Manufacturers are urged to incorporate low-carbon steel produced within the EU into their vehicles.
- There is an anticipated increase in the use of biofuels and e-fuels to mitigate emissions from conventional vehicle sales.
- Opponents warn that this leniency could weaken the transition to electric vehicles and put the EU at a disadvantage against international competitors.
- The UK is advised to maintain its stringent regulations under the Zero Emission Vehicles Mandate.
Full Report
Manufacturers Voice Concerns
Amidst the policy shift, the European car industry expressed relief yet apprehension. The European carmakers association, ACEA, indicated that without adjustments to the zero-emission mandate, manufacturers could face “multi-billion euro” penalties due to inadequate market demand for electric cars. ACEA’s director general, Sigrid de Vries, emphasized the need for flexibility, urging policymakers to provide support to sustain jobs and innovation as the transition unfolds.
Impact on the UK Market
As the EU retunes its vehicle emission targets, UK stakeholders have voiced concern that relaxing their own regulations could be detrimental. Anna Krajinska from the green transport group T&E cautioned against mirroring the EU’s changes, stating, “The UK must stand firm,” noting that the ZEV mandate is crucial for driving investment and innovation within the UK automotive sector.
Industry Reactions
Volvo expressed confidence in its ability to transition to electric vehicles completely and criticized the European Commission’s revised plans, warning that short-term concessions could undermine long-term competitiveness. In contrast, German automaker Volkswagen supported the new CO₂ targets, labeling them “economically sound overall,” while advocating for flexibility concerning targets designated for small electric vehicles.
Infrastructure and Investment Concerns
Colin Walker from the Energy and Climate Intelligence Unit highlighted that stable policies are essential for encouraging investments in charging infrastructure. He referenced the historical significance of government policy in establishing Nissan’s electric vehicle production in the UK. Fiona Howarth, CEO of Octopus Electric Vehicles, echoed these sentiments, asserting that any retreat on goals would send damaging signals to investors and manufacturers alike.
Context & Previous Events
The revised ban on fossil fuel-powered vehicles stems from earlier decisions made by the European Commission, which initially aimed for all new vehicle sales to be zero-emission by 2035. The UK government has similarly set a deadline of 2030 to cease the sale of new petrol and diesel vehicles, prompting discussions about regulatory alignment and market readiness across Europe.
