European automakers are expected to gain a breathing space, without being completely restricted by the ban on the sale of internal combustion engine vehicles starting in 2035. According to Bloomberg's report on October 20th local time, several major parliamentary groups in Europe have reached an agreement to relax the emission regulations for this industry.
According to a document seen by Bloomberg, members from the center-right "European People's Party Group" (EPP), the center-left "Socialist and Democratic Progressive Alliance Group" (S&D), and the "Liberal" "Renew" group have reached a consensus: by 2035, car manufacturers such as BMW AG, Stellantis NV, and Volkswagen AG will only need to reduce emissions by 87.5%. The remaining 7.5% of the emission reduction target can be offset through the use of "green steel" – steel produced without the use of fossil fuels.
Currently, the spokespersons of the three party groups mentioned above have not immediately responded to requests for comment.
According to reports, this agreement is very similar to an important consensus reached last week between France and Germany. At that time, the proposals put forward by France and Germany were to reduce emissions by 90%, with the remaining 10% not subject to offset mechanisms. Before the final details of the agreement are finalized, the European Parliament and EU member states need to determine their respective positions.
Previously, in March 2023, the European Union decided to ban the sale of new fuel-powered sedans and small trucks that cause carbon emissions starting from 2035. Under German requests, new fuel-powered vehicles that use carbon-neutral fuels are expected to continue being sold after 2035. The EU states that according to this regulation, the carbon emissions of new fuel-powered sedans and small trucks will be reduced to zero by 2035.
However, if these proposed adjustments are implemented, new vehicles sold after 2035 will no longer be required to achieve “climate neutrality.” This means that internal combustion engine vehicles can continue to be sold on the market after that date. Automobile manufacturers argue that greater flexibility is needed to ensure the development of the industry; while critics warn that weakening climate targets could lead to Europe falling further behind China in the race towards electric vehicles.
In addition, the political groups in the European Parliament agreed to provide more flexible "super credits" mechanisms for pure electric vehicles, and relaxed the regulations regarding van vehicles. As for another proposal that requires vehicles to use only renewable fuels after 2030, Laurent Donceel, Secretary-General of the European Renewable Ethanol Industry Association (ePURE), believes that the restrictions are too severe and describes it as merely a formality.
