The European Union (EU) has abandoned its planned 2035 ban on the sale of new combustion-engined vehicles following sustained and intensive lobbying from car manufacturers.
Under the revised framework, starting in 2035 automakers will instead be required to achieve a 90% reduction in tailpipe emissions. The remaining 10% “will need to be compensated through the use of low-carbon steel Made in the Union, or from e-fuels and biofuels.”
In practice, this still means that the overwhelming majority of vehicles sold by manufacturers will need to be electric or very low-emissions models. However, it leaves room for up to 10% of sales to consist of ‘traditional’ internal combustion-engined cars.
The EU has also clarified that the updated rules will allow “plug-in hybrids (PHEV), range extenders, mild hybrids, and internal combustion engine vehicles to still play a role beyond 2035, in addition to full electric (EVs) and hydrogen vehicles.”
In another significant change, manufacturers will be able to earn so-called ‘super credits’ by producing small electric vehicles measuring less than 4.3 metres in length. Each qualifying model will count as 1.3 vehicles against a manufacturer’s overall production figures. According to the EU, this mechanism will also allow automakers to ‘bank’ credits for use against future production targets.
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The decision is likely to be welcomed by major carmakers that have been pressing hard for a rethink, including Stellantis, Mercedes-Benz, BMW, and Volkswagen.
European Commission President Ursula von der Leyen said: ‘Innovation. Clean mobility. Competitiveness. This year, these were top priorities in our intense dialogues with the 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.’
For now, it remains unclear how the EU’s revised position will influence the UK’s own regulatory roadmap, which is still geared toward a 2030 ban on the sale of new petrol and diesel cars.
