The European Commission is significantly backtracking on its ambitious plans to phase out internal combustion engine vehicles, sparking controversy and raising questions about the EU’s commitment to climate goals. A newly proposed framework, revealed Tuesday, relaxes previous targets, allowing vehicles with combustion engines, albeit drastically reduced in emissions, to remain on European roads beyond 2035.
The revised policy stipulates that automobile manufacturers must now achieve a 90% reduction in emissions, rather than a complete ban on new combustion engine vehicles. The remaining 10% will be offset through the utilization of low-carbon steel produced within the EU, or through the adoption of e-fuels and biofuels. This concession opens the door for plug-in hybrids (PHEVs), vehicles with range extenders, mild hybrids and conventional combustion engine vehicles to coexist with fully electric vehicles (EVs) and hydrogen-powered alternatives – a move that has drawn criticism from environmental groups.
The revisions extend beyond passenger vehicles. The proposed CO2 target for vans has been lowered from 50% to 40% by 2030 and the Commission suggests a greater degree of “flexibility” in complying with heavy-duty vehicle emissions targets for the same year. This modification raises concerns about potential loopholes and diminished pressure on the commercial transportation sector to transition to zero-emission solutions.
The strategy includes measures aimed at accelerating the adoption of cleaner vehicles within corporate fleets. While acknowledging the crucial role of large companies in driving change, the framework delegates the task of setting binding targets to individual member states. This decentralization risks uneven adoption rates and potentially undermines the EU’s overall climate ambitions. Further complicating matters, accessing public funding will now be contingent on vehicles exhibiting low emissions and bearing the “Made in the EU” quality mark, potentially creating trade barriers and favoring domestic producers.
In an attempt to bolster Europe’s position in the burgeoning battery technology sector, the Commission pledges €1.8 billion to fast-track the development of a fully EU-based battery value chain. A significant portion, €1.5 billion in zero-interest loans, will be directed towards European battery cell manufacturers. While intended to reduce reliance on foreign suppliers and stimulate domestic innovation, questions remain about the effectiveness of this subsidy program and the potential for market distortions.
The partial retreat from the original combustion engine ban highlights a growing tension within the EU: the desire to meet ambitious environmental targets versus the political and economic realities of transitioning a vast industrial sector. Critics argue the revised plan weakens the EU’s climate leadership and risks delaying the transition to a truly sustainable transportation system while also raising concerns over the potential for national interests to compromise collective environmental goals.
