Europe's lofty plan to phase out the sale of internal combustion engine (ICE) cars by 2035 – which was laid out back in 2022 after tense negotiations – now seems all but dead. The European Commission (EC) announced this week that it's dropping the ban on new gas-powered cars and vans a decade from now, owing to pressure from the continent's automotive industry.
The EU's executive branch is walking back this policy while claiming to remain committed to its goal of achieving climate neutrality by 2050; it maintains that the updates to its position are drawing from an "ambitious yet pragmatic policy framework," and that they allow for the region's auto industry to remain competitive in a fast-changing landscape that can benefit from greater flexibility.
The glaring change is that car manufacturers' new models must achieve a 90% tailpipe emissions reduction target from 2035 onwards. That's down from 100%, which would have seen the entire European industry shift to exclusively producing battery-electric vehicles.
This allows for plug-in hybrids (PHEVs), mild hybrids, range extenders, and internal combustion engine vehicles to remain viable beyond that year. The remaining 10% of emissions can be compensated for by using low-carbon steel made in the EU (up to 7% of the reference target), and from actual emissions savings from e-fuels and biofuels put on the market (up to 3% of the target).
Another clause allows automakers to benefit from more valuable credits issued against small electric cars made in the European Union that measure less than 13.7 ft (4.2 m) and cost between €15,000-€20,000 (US$17,587-$23,450). This is meant to incentivize the production of sensible, locally made electric vehicles (EV).
It's worth noting this new plan is currently still just a proposal, and it needs to be approved by the European Parliament. But it's likely to go through, and that'll be a win for the German and Italian automakers who lobbied for the relaxation of these policies. Volkswagen reported flagging EV demand earlier this year, pausing production at two of its German factories.
This is arguably more than a minor compromise. A report published in October showed that PHEVs emit nearly as much CO2 as ICE vehicles, and how the former's real-world emissions figures have gone up to nearly five times what's been recorded officially. So it's really quite a big step back.
The proposal also undercuts region-wide efforts that people and companies have already taken to adopt EVs and its supporting charging infrastructure. If gas-powered cars continue to be sold 10 years from now, it's likely that governments and energy agencies won't be inclined to invest as heavily in making their countries as EV-ready with chargers and appropriate power distribution measures as they would have if Europe went all-electric as it had originally planned.
Find the Automotive Package microsite with more details from the EC here.
Source: European Commission
