European Union officials reaffirm 2035 ban on new gasoline cars while also making revisions to help automakers reach these targets easier as the market continues to shift.
The EU reveals that while it’s moving full-speed ahead on its 2035 ban of new ICE vehicles, it’s also making things easier for consumers and automakers.
When the European Union announced it was passing new regulations that would effectively ban new gasoline cars from being sold in 2035, it was an ambitious plan that was supposed to help improve environmental quality, reduce emissions, and encourage more buyers into alternative fuel vehicles like battery-electric offerings.
However, it was also full of questions, confusion, and controversy with many automakers finding themselves needing more information about how they could reach these targets in a sensible manner to comply with the new regulations. This week, the European Commission (EC)—the EU’s executive arm confirmed that while the existing phase-out will still be moving full speed, it’s also making minor revisions to help give automakers an easier time in reaching these targets as they prepare to potentially adjust their sales plans for the European market.
Automakers get some help from EU
Automakers will get extensions on some key targets of the plan that come before the 2035 ban kicks in and better access to materials for EV production.
While the ban proceeding forward in its current timetable was expected and the EC’s insistence on continuing things along at its current pace is not surprising, the choice to help automakers reach these goals was unexpected. Part of this support comes in giving them an extension on meeting some of the precursor steps that need to be done before the 2035 phase-out kicks in. For example, instead of enforcing an existing reduction in C02 emissions in 2025, the EC is now giving automakers until 2027 to make their new vehicles comply with the changes. This reprieve will take some of the pressure off automakers and give them more time to make their vehicles comply with the upcoming regulations.
The revised order also allows automakers to meet key targets in stretches of over three years versus the old language that saw the firms be forced to adhere to strict annual limits. Their pocketbooks will also be safer, with the EC no longer charging fines for any automaker that exceeds their emissions limit in a given year if they are still posting lower emissions during a set three-year period.
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EV production will also be easier, consumers get help too
Consumers will also get more assistance from the EU too in the form of expanded incentives and leasing programs for both new and used EVs
In addition to giving automakers a break on their ICE-powered vehicles, the European Union will also be taking steps to help them produce more EVs. The EU plans to do this by supporting battery production through its “Battery Booster” package which will provide €1.8 billion in direct funding to boost European production of battery cells and components with a separate “Battery Raw Materials Access Entity” providing better access to some of the raw materials needed for battery production.
In addition to all the assistance automakers will be getting, the EU will also attempt to sweeten the deal for consumers wary of EVs by expanding the amount of incentives and social leasing plans that will be available for the purchase of both new and used EVs with automakers also accelerating the rollout of cheaper EVs to appeal to buyers who might want an EV but are currently priced out of the market. Canada is also proceeding with a similar ban and while it remains to be seen if that particular plan will proceed in its current form, look for the Canadians to watch the EU’s moves and perhaps make revisions of their own in the future to help make it easier for automakers and consumers there as well.
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