The European Commission presented this Tuesday the so-called Automotive packagea number of measures aimed at this drive the transition of the automotive sector towards cleaner and more competitive mobility and has reduced the planned 2035 target of a 100% reduction in exhaust emissions to 90%, despite Pedro Sánchez’s veto of the internal combustion engine in favor of electric cars.
“We reject the fact that vehicles with internal combustion engines or other technologies without proven feasibility can continue to be marketed beyond 2035,” wrote the President of the Spanish government in a letter to the President of the European Commission, Ursula von der Leyen, last Sunday. Despite the request, the Commission reversed the measure, requiring manufacturers to meet a target of 2035 90% reduction, while the remaining 10% must be offset by low-carbon steel produced in the EU or by synthetic fuels and biofuels.
The package sets out an ambitious and pragmatic policy framework with the aim of achieving climate neutrality by 2050 and strengthening the EU’s strategic independence European UnionAt the same time, they offer manufacturers more flexibility and respond to industry needs to simplify regulations.
In addition, it supports the production of vehicles and batteries in the European Union. Among the initiatives included, the one aimed at promoting the introduction of zero-emission and low-emission vehicles in company fleets stands out, as well as the so-called Automobile omnibuswhich aims to improve the competitiveness of the sector through estimated cost savings of approximately 706 million euros annually and reducing administrative burdens, resulting in greater investment security.
The legislative package addresses both supply and demand in the changing automotive sector. At the utility level, a review of CO2 emissions standards has been proposed Passenger cars and vansas well as a special modification for heavy vehicles. Regarding demand, the Commission proposes an initiative to decarbonise corporate fleets and sets binding national targets for the integration of zero- and low-emission vehicles.
The new CO2 rules are introduced additional flexibility to support the industry and promote technology neutrality, while providing manufacturers with predictability and sending a clear signal towards electrification. By reducing the emissions target, plug-in hybrids, vehicles with range extenders, light hybrids and vehicles with combustion engines can be present alongside pure electric and hydrogen vehicles beyond 2035.
These changes will allow manufacturers to benefit from “super credits” for small and affordable electric cars manufactured in the European Union before 2035, thereby incentivizing the launch of more such models. For the 2030 target for cars and vans, additional flexibility will be introduced through a “banking and credit system” for the period 2030-2032. In vans where the Introduction of electric vehicles has become more complex, the CO2 reduction target for 2030 will be reduced from 50% to 40%.
In addition, the Commission proposes a concrete change to the emissions standards for heavy vehicles to make it easier to meet the 2030 targets. Regarding the Company vehiclesBinding targets will be set at Member State level to encourage the uptake of zero- and low-emission vehicles by large companies. In addition, the Commission will require that vehicles receiving public financial support be zero or low emission and manufactured in the European Union.
With this plan approved by the European Commission, European manufacturers will reduce their administrative burdens and costs, strengthen their global competitiveness and free up resources for decarbonization. According to the Commission statement, companies are expected to save approximately 706 million euros per yearThis brings the total administrative savings resulting from all simplification initiatives presented by the Commission to date to around 10% 14.3 billion euros annually.
Among other things, it is suggested reduce the number of regulations Secondary testing to be introduced in the coming years that will simplify testing for new vans and trucks, reducing costs without sacrificing the highest environmental and safety standards.
Additionally, the document introduces a new vehicle category within the Small and Affordable Cars Initiative, which includes up to electric vehicles 4.2 meters long. This will allow Member States and local authorities to develop specific incentives to stimulate demand for small electric vehicles manufactured in the European Union.
On the other hand, the European Commission has announced the introduction of the Battery boosterequipped with 1.8 billion eurosto accelerate the development of a fully European battery value chain. As part of this program, 1.5 billion euros will be made available for interest-free loans for European battery cell producers.
As explained by the Commission, the aim of this measure is to improve the cost competitiveness of the sector, to ensure the supply of raw materials and to support sustainable and resilient production in the European Union, which will also be able to reduce production Dependence on other states dominant in the industry – like China –. As the European Commission explains, these measures are part of a broader strategy to strengthen Europe’s industrial autonomy.
The President of the Commission, Ursula von der Leyenhas underlined the importance of innovation, clean mobility and competitiveness and stated: “Innovation. Clean mobility. Competitiveness. This year these were priorities in our intensive dialogues with the automotive industry, civil society organizations and interest groups.
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