European ICE ban to go
The EU has eased its zero-emissions target to allow some cars with internal combustion engines (ICEs) to be sold after 2025 as doubts about range, sticker prices and public chargers hold back EV uptake in member states.
ICEs would have been effectively banned under what was the current plan. The new proposal aims to reduce carbon dioxide (CO2) emissions by 90 per cent compared to 2021’s levels. The remaining 10 per cent will have to be offset by sustainable biofuels or e-fuels and low-carbon green steel made in Europe.
A variety of drivetrains, including plug-in hybrids (PHEVs), extended-range EVs, mild hybrids and ICEs can still play a role beyond 2035, the European Commission said this week. It will present a detailed plan to the European Parliament and its council next year.
“We hope an agreement can be struck as quickly as possible to guarantee stability,” says Stephane Sejourne, the commission’s executive vice-president.
Carmakers have previously said the 2035 target would have been impossible to hit with EV penetration sitting at about 18 per cent by October 2025. EVs are now a majority in some northern European markets but are only in single digits in parts of the EU’s south and east.
The revised rules mean manufacturers can reassess tens of billions of euros in EV investments, some of which could be diverted into sustainable fuels and more-efficient hybrids.
Carmakers will also get a break on 2030 emissions targets, which will be averaged over 2030-32, similar to the 2025 targets.
The commission has addressed issues of affordability by offering carbon “super-credits” for small European-made EVs. It’s also urging a 10-year regulation freeze, which would save money on development.
Measures to increase sales of small cars were backed by Renault and Stellantis, although the commissioners did not go so far as to propose rules for kei-class models for Europe.
A request by the same two companies for relief for commercial van emissions was granted. Vans, of which fully electric uptake has been limited, will also have emissions averaged from 2030-32 and lower targets.
The EU rejected several items on the car industry’s wish list. There was no mention of a proposed freeze in the “utility factor” for PHEVs that determines their emissions meaning this segment will need to become more efficient. On-board monitoring has found users don’t charge them as often as they should.
Corporate fleets will have to meet specific country targets for low and zero emissions, and made-in-Europe requirements. BMW and other luxury marques, which rely on those sales, had resisted such quotas.
The European Automobile Manufacturers’ Association says the EU “has made a first step to creating a more pragmatic and flexible pathway to align decarbonisation with competitiveness and resilience objectives”. However, the package “needs more decisive measures to facilitate the transition in the next few years”.
Lobby group Transport & Environment says the EU “has chosen complexity over clarity”. Executive director William Todts adds: “Every euro diverted into PHEVs is a euro not spent on EVs while China races further ahead. Clinging to ICEs won’t make European carmakers great again.”
The announcement on December 16 follows carmakers warning the move to zero emissions without “technology neutrality” would trigger widespread job losses, supplier bankruptcies and consolidation in Europe. They add the rules stifle innovation by essentially banning ICEs in favour of battery-electric vehicles, whose supply chain is largely controlled by Chinese and Asian players.
