In a stunning walkback, the European Commission has ditched its internal combustion engine (ICE) ban for new light and passenger vehicles, initially due to come into effect by 2035 and now dismissed entirely.
The decision follows a cooling of demand for crucial zero-tailpipe-emissions vehicles such as EVs and hydrogen fuel-cell cars, which were integral for carmakers to meet the controversial requirements.
Under new proposals, which will need to be approved by the European Parliament, carmakers will need to reduce their fleet emissions by 90 per cent compared to 2021 levels before the start of 2035.
The existing regulations would have required a 100 per cent reduction, effectively making EVs and FCEVs the only viable models.
This has given a new lease on life to hybrids, plug-in hybrids (PHEVs) and extended-range EVs (EREVs or REEVs), while not totally dismissing the role of EVs and FCEVs to achieve the still stringent requirements.
In addition to these electrified vehicles, the European Commission also noted the 10 per cent difference can be bridged by new cars with engines requiring biofuels and e-fuels, while carmakers can also use low-carbon steel made in Europe to get credits.
While suggestions had been made that the ICE ban would be pushed back to 2040, there is no set date for emissions to be reduced by 100 per cent.
The UK Government, which independently has its own petrol and diesel engine ban coming in 2035, hasn’t announced a change to this pathway.
No car brands have reacted to the proposed changes yet. Though the vast majority supported a watering down of the ICE ban, some wanted the 2035 date to remain, given their future product plans would already be in place.
The European Commission has also proposed brands will be given “super credits” for new small EVs built in Europe to new Kei car-style size regulations, measuring up to 4.2 metres long.
A €1.8 billion (A$3.19 billion) “battery booster” subsidy has also been announced for European EV battery makers, with €1.5 billion (A$2.66 billion) allocated to “support European battery cell producers through interest-free loans”.
