EU signs off on final phase-out of combustion engine in cars
On 14 February, the European Parliament approved the European Union’s plans for new CO2 emissions reduction targets for cars and vans by 2035. This new regulation effectively bans internal combustion engines, incentivising the production of more electric passenger cars and small commercial vans. Coined “CO2 Emission Standards for Cars and Vans”, the proposed regulation was first presented in July 2021 as part of the EU’s ‘Fit for 55’ package, aimed at reducing CO2 emissions in the EU by 55% in 2030.
With 340 votes in favour and 279 against, the approval of this text, which reflects a deal reached between the Parliament and Council late last year, means that new diesel and petrol cars will be banned from registering in member states after 2035. In the meantime, the EU plans to develop a methodology to evaluate CO2 emissions by 2025. The legislation also sets an intermediate carbon reduction goal of 55% for cars and 50% for vans by 2030. Progress reports are to be published every two years. The proposal met resistance in 2021, leading to flexibility for car manufacturers who produce less than 10,000 cars per year – deemed the ‘Ferrari agreement.’
Agreement on the legislation was reached between the Council and Parliament in October 2022 with Dutch MEP, Jan Huitema (NL, RE) leading negotiations for the Parliament and the Czech Republic at the helm in the Council. Measures included in the text will see significant change in the EU’s climate targets with the new emission reduction target for 2030 standing at 55% (previously it was 37.5%). Welcoming the Parliament’s adoption of the text, MEP Huitema said, “It contains an ambitious revision of the targets for 2030 and a zero-emission target for 2035, which is crucial to reach climate neutrality by 2050. These targets create clarity for the car industry and stimulate innovation and investments for car manufacturers. Purchasing and driving zero-emission cars will become cheaper for consumers and a second-hand market will emerge more quickly. It makes sustainable driving accessible to everyone.”
Executive Vice-President of the European Commission, Frans Timmermans, who is leading the EU’s climate agenda, believes that 2035 is the ideal time to implement this regulation. Writing in December last year, Timmermans argued that this is compatible with the average lifespan of a car and that most European car manufacturers will have already committed to carbon-neutrality before 2035.
Opposition to the regulation came from conservative members of EPP, ECR, and ID who believe that the ban harms industry more than it helps CO2 emissions reductions. German MEP Peter Liese (DE, EPP) for instance argues that the “ban on the combustion engine does very little for the climate and harms industry in our region”.
Before being published in the EU Official Journal and officially becoming law, next, the text will have to be formally endorsed by the Council.
Separately, on 14 February, the European Commission presented a new proposal setting out new ambitious targets for buses and trucks. In line with the proposal, new city buses must completely cut carbon emissions by 2030. New trucks, on the other hand, will have until 2040 to cut carbon emissions by 90%.