Pressure from the European automobile industry has borne fruit and the European Union is returning to one of its most advanced ecological proposals. Brussels lifts the total ban on combustion engines in the EU by 2035: car manufacturers will be allowed to continue producing a limited number of gasoline and diesel vehicles since the permitted emissions level is 10% of that recorded in 2021, that is, it goes from a target of 100% zero emissions to one of 90%. While for vans, the CO2 emissions reduction target for 2030 is reduced from 50% to 40%, according to the Commission after “recognizing the structural difficulty of electrification of this segment”.
Stellantis, Mercedes-Benz, Volkswagen and BMW, as well as ACEA (Association of European Automobile Manufacturers) have lobbied European institutions, with the help of the German and Italian governments, among others, so that combustion engines can continue to operate in 2035.
European Commission President Ursula Von der Leyen admitted that “innovation, clean mobility and competitiveness were the main priorities of our intense dialogues with the automotive sector and civil society organizations. Last October, von der Leyen had already sent a letter to the European Council on Competitiveness in which she warned that she intended to “accelerate the revision of the regulation on CO2 emission standards for cars and vans” so that future legislation is closer to the demands of the automobile industry.
This change of position responds to a deeper metamorphosis within the European institutions with the aim of reversing the progress of the green agenda made during the last legislature and opening a new political stage with the breaking of the cordon santé of the European PP with the far right to vote jointly to lower environmental requirements.
The proof of this change of course is that the president of the European People’s Party, Manfred Weber, was the one who confirmed the European withdrawal before the Commission itself: “All engines can continue to be produced and sold on the European market after 2035. The 90% target for 2035 is a request from the European Parliament, which had already tried to be introduced as an amendment when this proposal was debated in Parliament four years ago.
The Spanish Minister for Ecological Transition, Sara Aagesen, admitted this Tuesday that “this is a geopolitical moment and a complicated context. The Commission has already introduced flexibilities in the past.” Aagesen stressed that the position of the Spanish government is to “continue this roadmap which has been developed with the aim of ending the commercialization of combustion vehicles in 2035. It is important to respect the commitments which have been defined to ensure stability for investors but also for citizens”. This will not come true.
A senior Commission official tried to justify the move from zero emissions to 90%: “This does not mean that we will not achieve our climate neutrality target. All emissions will need to be offset through the use of credits, which can be obtained by using sustainable renewable fuels or by using low-carbon steel manufactured in the EU. These flexibilities make it possible to guarantee the 90% objective while achieving the objective of climate neutrality.
But in the electric car industry, the situation is not the same. “Moving from a clear target of 100% zero emissions to a target of 90% may seem small, but if we go back now, we will not only harm the climate. We will also harm Europe’s competitive capacity,” warned the CEO of Polestar, the electric car brand of the Volvo Group, Michael Lohscheller, according to Reuters.
In this way, the Commission’s commitment is not respected and, from 2035, there will still be vehicles equipped with internal combustion engines, as well as plug-in hybrid vehicles, mild hybrids, purely electric vehicles and vehicles equipped with hydrogen mechanics.
Credits to produce small electric cars
But in addition to not complying, the European Commission will reward the European automobile industry. Until 2035, manufacturers will benefit from “super credits” to produce small (less than 4.2 meters) and affordable electric cars manufactured in the European Union. The aim is to improve the competitiveness of European electricity supply by encouraging more economical models on the market.
On the other hand, Brussels will boost the battery industry with investment in the “Battery Booster” plan of 1.8 billion euros to accelerate a value chain of batteries entirely manufactured in the EU. Of this amount, 1.5 billion euros will be allocated to interest-free loans for European battery manufacturers.
An initiative to decarbonize corporate fleets is also proposed with targets at Member State level to support the adoption of zero or low emission vehicles. For vehicles to benefit from public financial support, it will be necessary that they have zero or low emissions and that they bear the label “Made in the EU.
Following the approach to reducing regulatory and administrative burdens imposed by the European Commission in recent months, there will be a simplification of rules and reductions in procedures through which car manufacturers are expected to save around 706 million euros per year.
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