Cars: EU backtracks, allowing space for traditional engines even after 2035, green light to biofuels

from our correspondent in Strasbourg – Cars, green light to technological neutrality, with alternative fuels—synthetic and bio—and plug-in hybrids (PHEV), mild hybrids, and range extenders. Above all, there is still room for traditional engines, those internal combustion engines powered by petrol and diesel. To move forward, the European Commission is backtracking on the automotive sustainability dossier. An announced and expected proposal, part of that car action plan developed by the EU executive to meet the automotive sector and its players. 

The flexibility introduced through the omnibus package for cars includes a reshaping of the targets: no longer a 100 per cent cut in emissions by 2035, but a 90 per cent cut. This leaves a 10 per cent margin, which can also be filled with conventional engines. Moreover, the Commission’s review proposal specifies that the package “will allow internal combustion engine vehicles to continue to play a role even after 2035, as well as fully electric and hydrogen-powered vehicles.”

Green light for biofuels, offsets if “EU-made” steel is used

The general layout is confirmed, whereby from 2035, there will be no more production concentrated solely on diesel and petrol engines. Then, from that date, car manufacturers will have to meet a 90 per cent reduction target for exhaust emissions, while the remaining 10 per cent of emissions “will have to be compensated for through the use of low-carbon steel produced in the Union, or from electrical fuels and biofuels.” 

This clarification demonstrates, first and foremost, the desire to combine the needs of the automotive sector with those of the steel industry, and to respond with additional measures, beyond those already taken, to address the issues of the steel industry.

This makes it possible to build traditional, more polluting engines with sustainable steel, which is less polluting in its manufacturing process. 

“Today we are taking action to ensure a clean and successful future for the automotive sector,” emphasises Wopke Hoekstra, Commissioner for Clean Growth and Climate. With these measures, “we bring flexibility for manufacturers.”

Support for EVs

Flexibility does not mean reconsidering the electric car. On the contrary, the EU executive is making €1.8 billion available through the Battery Booster programme for the development of a battery supply chain entirely produced in the EU, with a focus on battery cells. A boost considered possible thanks to the interest-free loans to be granted through the specific programme. “We maintain the predictability of investments in the electricity sector, reduce emissions, and remain on track for climate neutrality by 2050,” says Hoekstra.

Simplification: European omnibus for cars too

The European Commission’s proposals for changes in the automotive sector do not stop there. Having to rework the regulation that has sanctioned a stop to endothermic engines from 2035, the von der Leyen team is taking the opportunity to bring regulatory simplification to this area as well. Less bureaucracy and administrative tasks are estimated to result in savings of around €706 million per year.

Among the proposals developed is the goal of reducing the number of secondary regulations that will be adopted in the coming years and simplifying tests for new vans and lorries used for passenger transport. 

“The targeted simplification initiatives contained in the Omnibus for the automotive sector are an important first step,” emphasises Economy Commissioner Valdis Dombrovskis. “We are determined to stay the course, to continue our efforts and to provide our automotive sector with the simple, clear, supportive and predictable rules it needs to thrive.”