Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Environment/Emissions
June 29, 2022 02:14 AM

EU countries uphold CO2 plan that phases out combustion cars by 2035

With EU lawmakers already in favor of giving up fossil fuels in the auto industry, it's highly likely that most car companies will have to shift to producing electric models in little more than a decade.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    European Union countries endorsed a push to eliminate carbon emissions from new cars by 2035, effectively heralding the end of the internal combustion engine era.

    Environment ministers struck a deal on the proposal after Italy, home to Ferrari and Lamborghini, gave up demands for a five-year delay in the EU's plan for automakers to clean up their fleet.

    Italian Ecological Transition Minister Roberto Cingolani told his counterparts earlier on Tuesday he was “satisfied” with a compromise proposed by Germany that could enable the use of carbon-neutral fuels after 2035.

    The agreement defines member states' negotiating stance for further talks with the EU Parliament and the European Commission on the final shape of the bloc's so-called Fit for 55 landmark greenhouse gas-reduction package.

    With EU lawmakers already in favor of giving up fossil fuels in the auto industry, it's highly likely that most car companies will have to shift to producing electric models in little more than a decade.

    “I have full confidence that the European car industry can manage,” Frans Timmermans, the commission's executive vice president, told the ministers as the heated talks were drawing to a close around 2 a.m. in Brussels on Wednesday. “Our carmakers are among Europe's industrial leaders and they can continue to be that as they embrace this global shift.”

    As part of the package, governments also agreed to strengthen the EU Emissions Trading System and bolster its price-control mechanism. They also want to delay by a year a new carbon market for heating and road transport fuel and create a climate fund to help mitigate the costs of the new cap-and-trade program for the most vulnerable.

    “Thanks to this agreement, Europe is putting itself at a leading position in terms of addressing climate challenges and technology,” said French Energy Transition Minister Agnes Pannier-Runacher. “We're also ensuring a just transition for each member state, each territory and each citizen.”

    Along with four other member states, Italy had sought a 90 percent reduction in automakers' emissions by 2035, the year that the European Commission has targeted a full cut, as well as a longer exemption for small automakers.

    It won some concessions on derogation for niche manufacturers -- like Lamborghini -- who will be spared interim targets until the end of 2035, from 2029 proposed by the commission, according to France.

    In an attempt to enable a compromise, Germany proposed a non-binding addition to the car emissions law that calls on the commission to propose registering vehicles running exclusively on carbon-neutral fuels after 2035.

    The automakers' lobby group ACEA said it agreed with the decision but said that infrastructure needed more support and that access to EV raw materials needed to be secured in Europe. “To be very clear: the automobile industry will fully contribute to the goal of a carbon-neutral Europe in 2050," ACEA president and BMW CEO Oliver Zipse said. "But the decision of the Council raises significant questions which have not yet been answered, such as how Europe will ensure strategic access to the key raw materials for e-mobility.”

    He added that "hydrogen and other CO2-neutral fuels can play an important role in decarbonizing road transport."

    CLEPA, which represents suppliers, said it "took note" of the decision, but emphasized that the group continued to support "a technology open approach, with a smart and sensible technology mix of electric vehicles and a measured use of alternative solutions involving advanced internal combustion engine technology."

    "We are concerned about the lack of commitment when it comes to the deployment of charging and refuelling infrastructure as well as the capacity for producing renewable electricity and renewable fuels," general secretary Sigrid de Vries said in a statement. "Going forward, criteria such as affordability, access to raw materials, emissions along the life cycle and employment in the sector need to be considered."

    The environmental group Transport & Environment welcomed the accord among ministers, but called on members of the European Parliament to "shut down any possibility of a loophole for synthetic fuels," saying they are more expensive for drives and "a far less efficient use of renewable electricity than direct electrification."

    “The end of the combustion engine is great news for the climate," said Julia Poliscanova, senior director for vehicles and electric mobility at the group. "But new proposals on fuels are a diversion."

    The ministers also agreed to endorse the key parameters of a sweeping carbon market reform as proposed by the commission, including a 61 percent reduction of emissions in the cap-and-trade program by 2030 from 2005 levels.

    They want to strengthen a mechanism preventing excessive price spikes to curb speculation, and enable the release of 75 million carbon permits into the market. That would happen if the average auction price of allowances in six months is in excess of 2.5 time the average price of the two preceding years.

    The deal also limits the size of the Social Climate Fund to 59 billion euros ($62 billion) from 72 billion euros proposed by the European Commission.

    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.
    RECOMMENDED FOR YOU
    EU, Germany reach car emissions deal that includes e-fuels
    Recommended for You
    Cars in Berlin e-fuels 2035 debate
    EU, Germany reach car emissions deal that includes e-fuels
    E-fuels cars on highway 2023
    German transport minister 'optimistic' EU e-fuels stand-off will be resolved
    VW ID3 production Dresden
    Germany sees no need to rush combustion-engine deal with EU
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us