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The European Commission has dramatically watered down its ambitious plan to ban the sale of new petrol and diesel vehicles by 2035, bowing to pressure from the automotive industry amid falling demand for electric vehicles, intensifying Chinese competition and looming United States tariffs.

 

Existing regulations stipulated that all new vehicles sold from 2035 must be zero-emission, but carmakers, particularly those in Germany and Italy, have mounted intense lobbying campaigns demanding concessions. Their efforts, it seems, have now paid off.

 

Under the Commission's revised proposal, only 90% of new cars sold from 2035 would need to be zero-emission, rather than the previously mandated 100%. The remaining 10% could consist of conventional petrol or diesel cars, along with hybrid vehicles.

 

To offset the additional emissions that will now be generated by petrol and diesel vehicles from 2035 onwards, the EC is asking for the increased use of biofuels and e-fuels, which are synthesised from captured carbon dioxide. The plan also requires carmakers to use low-carbon steel manufactured within the EU for their vehicles.

 

Critics have warned that the retreat risks seriously undermining the transition towards electric vehicles and leaves the EU vulnerable in the face of foreign competition from manufacturers who are racing ahead with electrification.

 

And Spain isn’t a bit happy about the decision. The government has already stated its opposition to the change, a position echoed by France.

 

"We believe that we must continue with that roadmap that was drawn up with the end of the commercialisation of combustion vehicles in the year 2035," commented Sara Aagesen, Spain's Minister of Ecological Transition, on Tuesday. She emphasised that cars represent 15% of emissions throughout the EU, calling for "responsibility" in the fight against climate change.

 

Commission sources have insisted, however, that the objective of climate neutrality will still be achieved because any residual emissions must be compensated through carbon credits now being introduced by the EU. These credits can be obtained by using sustainable renewable fuels or by incorporating low-carbon steel made within the EU.

 

The EC is also considering measures to promote small and affordable electric cars to make them a more attractive option across the EU.

 

"It would provide simplification for companies, reinforce the economic viability of manufacturing affordable small electric vehicles profitably in Europe and reduce the price for consumers," the Commission explained this week.

 

German carmaker Volkswagen has applauded the European Commission's draft proposal on new CO₂ targets as "economically sound overall".

 

"The fact that small electric vehicles are to receive special support in future is very positive. It is extremely important that the CO₂ targets for 2030 are made more flexible for passenger cars and adjusted for light commercial vehicles,” a spokesperson said.

 

"Opening up the market to vehicles with combustion engines while compensating for emissions is pragmatic and in line with market conditions."

 

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