Unofficial announcements from last week have received official confirmation – the European Union is abandoning the long-announced complete ban on fossil fuel vehicles after 2035. It is part of the “package of measures for the automotive industry”, presented this week before the members of the European Parliament, with which the EC wants to achieve a “clean future”, climate neutrality, but also to strengthen the domestic car industry.
There is no total ban
The most important part of that proposal is the lifting of the mentioned ban on the sale of new petrol and diesel cars, so the new targets regarding CO emissions will2 from car exhaust pipes, instead of 100%, prescribe a reduction of “only” 90%. After that, European manufacturers will have to compensate for the remaining 10% of emissions by using low-carbon steel produced in the European Union or by using e-fuels and biofuels. This will allow plug-in hybrids, range extenders (range extenderi), mild hybrids and vehicles with internal combustion engines still have a place in the market after 2035, alongside fully electric and hydrogen-powered vehicles.
Furthermore, car manufacturers will be able to benefit from a “super credit” for small affordable electric cars produced in the European Union until 2035. This will encourage the market introduction of more small models of electric vehicles, which has also been discussed in recent weeks. The package of laws also introduces a new category of vehicles within the framework of the initiative for small affordable cars, which includes electric vehicles up to 4.2 meters in length, to which the aforementioned incentives will apply.
Vans, fleets, batteries
Additional flexibility is granted for the van segment, in which the introduction of electric vehicles is structurally more difficult, with a reduction in the target CO value2 for vans by 2030 from 50% to 40%. The Commission also proposes a targeted change in CO emission standards2 for heavy vehicles with flexibility to facilitate compliance with the 2030 targets.
When it comes to corporate vehicles, mandatory targets have been established at the level of the member states to support the introduction of vehicles with zero and low emissions in large companies. Since company cars cover higher annual mileage, this also means more emissions reductions. Zero or low emissions and “Made in the EU” will be a prerequisite for vehicles receiving public financial support.
With €1.8 billion, the battery booster will accelerate the development of the EU-made battery value chain. Under the battery booster, €1.5 billion will support European battery cell manufacturers through interest-free loans. Additional targeted policy measures will support investment, create a European battery value chain and encourage innovation and coordination among Member States.
Less bureaucracy
The collective regulation on the automotive industry will reduce the administrative burden and costs for European manufacturers, increase their global competitiveness and free up resources for decarbonisation, the Commission announces. Among other things, it is proposed to reduce the amount of so-called regulations. secondary legislation to be passed in the coming years and the simplification of tests for new passenger vans and trucks. In conclusion, the Commission is also updating and harmonizing the rules on car labeling so that buyers have complete information about car emissions when buying.
The car package also got its own website, where all the key information is published. The proposal now goes before the bodies of the Parliament, which must ultimately adopt it.