Background on the EU’s Climate Goals and Automotive Industry
The European Union has softened its plan to ban the sale of new gasoline and diesel cars starting from 2035, aiming to support struggling European automakers. This decision is part of the EU’s broader climate goals, specifically the Green Deal European Pact, which was established during Ursula von der Leyen’s first term as President of the European Commission. The pact aims to achieve carbon neutrality by 2050.
Reasons for the Policy Shift
The EU’s policy shift comes amidst increasing competition from China and trade tensions with the United States. In recent months, the EU has postponed or scaled back several environmental measures in favor of businesses. The original ban on new gasoline and diesel cars was a symbolic measure of the Green Deal European Pact, but the EU now seeks a more pragmatic approach due to challenges faced by the automotive industry.
New Conditions for Selling New Cars Post-2035
Starting from 2035, car manufacturers will still be allowed to sell a limited number of new vehicles with traditional or hybrid engines, provided they meet certain conditions. These conditions include offsetting carbon dioxide emissions, as outlined by the European Commission.
Stéphane Séjourné, the European Commission’s commissioner, emphasized that the EU remains committed to its climate ambitions but is adopting a pragmatic stance considering consumer acceptance and the difficulties automakers face in offering 100% electric vehicles by 2035.
Reactions from Different Countries and Organizations
German Chancellor Friedrich Merz welcomed the EU’s decision, stating that it is moving “in the right direction.” However, France expressed disappointment and vowed to work towards reversing the decision, according to French Minister of Ecological Transition Monique Barbut.
Greenpeace criticized the EU’s “policy reversal,” stating that it is detrimental to employment, air quality, climate change, and the availability of affordable electric vehicles.
Technological Neutrality and Support for Electric Vehicle Sector
Countries like Germany, Italy, and Poland advocated for “technological neutrality,” which means maintaining traditional engines beyond 2035 while promoting lower-emission technologies such as plug-in hybrid vehicles and alternative fuels.
France and Spain, however, urged the EU to stay as close as possible to the 2035 goal. They argued that reversing the combustion engine ban would undermine substantial investments made by manufacturers to transition to 100% electric vehicles and stifle the growth of Europe’s electric vehicle battery sector.
In response, the European Commission announced additional support for the electric vehicle sector and plans to make professional fleets more “eco-friendly.” The Commission also intends to enforce a “European preference” in the automotive industry, requiring manufacturers receiving public funding to source components made in Europe.
Moreover, the Commission aims to promote the development of affordable small electric vehicles to prevent China and other countries from dominating this market, as announced by Ursula von der Leyen in September.
Volkswagen’s Support for the EU’s Decision
Volkswagen, Europe’s largest automaker, praised the EU proposal to abandon the effective ban on new gasoline and diesel cars by 2035 as “economically sound.” The company stated that allowing combustion engine vehicles while offsetting emissions is pragmatic and in line with market conditions.
