European Union legislators have a political agreement on legislation that will effectively ban the production of new combustion engine cars and vans from 2035.
As one of the world’s largest trading blocs and home to some of the world’s largest automakers, the EU’s decision will have a huge impact on global transportation, putting the industry even more firmly on the path to an all-electric future. The legislation now has to be formally approved by the EU Council and Parliament, although only minor changes are expected to be made.
The main requirements are that by 2030, new cars will reduce their C02 emissions by 55 percent and new vans by 50 percent (in both cases, these emissions are compared to the 2021 level). By 2035, both new cars and vans must reduce CO2 emissions by 100 percent.
The “Ferrari Clause” means small manufacturers do not have to meet the 2030 interim target
These are the main goals, but there are additional caveats. For example, manufacturers that produce fewer than 10,000 cars or 22,000 vans annually are not required to meet the 2030 interim target for reduced emissions – only the final 2035 target. This is the so-called “Ferrari Clause”, intended to protect small car manufacturers. who produce fewer models per year than larger manufacturers.
There is also a non-binding proposal in the agreement to allow the production of vehicles “exclusively on CO2-neutral fuels” (also known as “e-fuels”) after 2035 if these vehicles are “outside the scope of the fleet standards”. .”
Some critics have suggested that this clause is a serious loophole; others that it is just a way to calm down certain factions in Europe, that will not affect the main goal of the legislation to eliminate emissions from EU vehicles. The latter point out that the stipulation that these vehicles must be “outside the scope of fleet standards” suggests that only special vehicles, such as ambulances and fire engines, can benefit from this exclusion.
EU lawmakers said the wording of this proposal would be tightened up before the legislation officially comes into force, hopefully shedding more light on what exactly it means.
Dutch centrist politician Jan Huitema, who negotiated on behalf of the European Parliament when writing the deal, praise the agreement and said it would “bring clarity for the auto industry and spur innovation and investment for automakers.”
“This is crucial to achieve climate neutrality by 2050”
“I am pleased that we reached an agreement with the Council on an ambitious revision of the 2030 targets and supported a 100% emissions reduction target by 2035. This is crucial to achieving climate neutrality by 2050 and making clean driving more affordable for our citizens,” Huitema said in a press statement.
The legislation is the first key element of the EU’s “Fit for 55” project to emerge from the negotiations. This is a package of proposed laws intended to reduce EU emissions by 55% by 2030, with the ultimate goal of making the EU carbon neutral by 2050. Other parts of the package will address issues such as land use, creating greener fuels for aviation and shipping and offering new financing for renewable energy technology development.
Meanwhile, other parts of the world are also working on their own ban on new combustion engines. The UK currently plans to ban the sale of these vehicles by 2030, while California — the fifth largest economy in the world compared to nation states — aims to ban new combustion engines by 2035. Other US states are thought to can follow California’s lead In the years to come.
