Brussels Reconsiders 2035 Combustion Engine Ban, Cites Van Lag and Industry Concerns
The European union is reviewing its plan to effectively ban the sale of new gasoline and diesel cars by 2035, spurred by concerns over the slower-than-expected adoption of electric vans and calls for greater flexibility from the automotive industry. the potential shift comes as the EU seeks to balance ambitious climate goals with the practical realities of transitioning Europe’s vast vehicle fleet.
The original 2035 deadline, confirmed by the European Commission, aimed to accelerate the shift to zero-emission vehicles. However, electric vans currently hold only 8.5% of the market share – half that of electric cars – prompting consideration of option pathways. Proposed adjustments may include authorizing the use of CO2-neutral fuels like biofuels,supporting plug-in hybrid technology,and allowing for extended mileage standards.
German Chancellor Friedrich Merz, speaking at the IAA Mobility Motor Show in Munich, emphasized the need for a multi-faceted approach, stating the industry “should not be restricted to one solution.” Volkswagen, Europe’s largest automaker, supports the ultimate goal of zero emissions but has requested more time and flexibility, advocating for transitional measures, relief for smaller manufacturers, and recognition of CO2-neutral fuels.
The review could be submitted alongside legislation concerning the decarbonization of corporate fleets, which account for approximately 60% of new car registrations in the EU.The Commission is also exploring a new category for small electric vehicles, perhaps offering tax benefits and loan incentives.
Simultaneously, the EU is prioritizing the development of local battery and automotive component industries, establishing stricter conditions for foreign investment, especially from China. While Chinese investment has increased following the introduction of tariffs on chinese electric vehicle imports, Brussels aims to prevent a scenario where vehicles are assembled in Europe using predominantly Chinese-made parts.