EU Commission Revises 2035 Ban on New Petrol and Diesel Cars, Introducing Flexibility in Zero-Emission Mandate
The European Commission has softened its 2035 ban on new petrol and diesel cars, now requiring 90% of new vehicles to be zero-emission instead of the previously proposed 100%. The remaining 10% may consist of conventional petrol or diesel cars or hybrids. In addition to this, the plan mandates the use of low-carbon steel produced within the EU in vehicles and aims to increase the use of biofuels and e-fuels to offset any extra emissions associated with the remaining conventional vehicles.
The European Automobile Manufacturers Association (ACEA) has expressed concerns about low market demand for electric vehicles (EVs), warning that penalties for non-compliance could reach billions of euros. The association has called for flexibility and additional breathing space in the mandate. Opponents of the revised plan argue that this change could slow the transition towards electric vehicles and weaken the EU's competitiveness in the automotive sector.
In the UK, reactions include Transport & Environment (T&E) urging the government not to weaken its own zero-emission vehicle (ZEV) mandate and emphasizing the importance of maintaining policy stability to secure jobs and investment. Volvo has publicly supported the move away from petrol and diesel vehicles, advocating for consistent policies and infrastructure investment. The company highlighted its achievement of building a full electric vehicle portfolio in less than a decade.
Volkswagen welcomed the proposal as pragmatic, stating that CO2 targets should be more flexible for 2030 and advocating for special support for smaller EVs. The European Climate Innovation Unit (ECIU) underscored the significance of stable UK policies for investment in charging infrastructure, citing examples like the Nissan Leaf production in Sunderland. Investors have been warned that potential policy changes in the UK could send damaging signals to the market.
