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Combustion engine phase-out: EU Parliament gives green light

As expected, the European Union Parliament approved the upcoming regulation for new cars on 14 February 2023. From 2035, new registered private cars and light commercial vehicles will be emission-free as part of the Union's transport and climate policy. However, not everything has been decided yet.

Last year, the European Union already had its plans for climate-friendly transport design to achieve zero-emission road mobility. Initially, the European Parliament (EP) and the member states had pledged their support for the EU Commission's legislative proposal. After months of deliberation, the ban on internal combustion vehicles is now one step closer to realisation. For now the final approval by the Parliament has also arrived.  

With 340 votes in favour, 279 against and 21 abstentions, the EP decided yesterday in favour of the ban on internal combustion vehicles as part of the EU climate protection package, according to a parliamentary communication. According to this, new passenger cars and light commercial vehicles are to become emission-free by 2035, which would correspond to a reduction of CO2 emissions by 100% compared to 2021. However, an interim target has been set for this. According to the EU plan, operating emissions from new cars of both classes are to be reduced by at least 55% to accompany the new combustion engine phase-out legislation with concrete and measurable targets. Additional measures and legal provisions will prepare the car industry and citizens for the ecological transition.  

These will be based on immediate studies and reports that will monitor, for example, life-cycle data on CO2 emissions from the vehicles concerned in the EU internal market in the coming years. Similarly, the European Union also plans to compare emission limits with actual fuel and energy consumption data on an ongoing basis - including manufacturer-specific carbon dioxide emissions. Furthermore, according to current plans, an incentive mechanism will be active between 2025 and 2029, rewarding manufacturers who sell more zero- and low-emission vehicles. Namely, vehicles that emit no or no more than 50 g CO2/km, as well as electric vehicles or powerful rechargeable hybrid vehicles, with lower CO2 reduction targets. This mechanism will be adapted to expected sales trends and support the transition to the internal combustion phase-out.  

At the same time, some exemptions are also foreseen. Car manufacturers producing only small volumes per calendar year - i.e. 1,000 to 10,000 new passenger cars or 1,000 to 22,000 new light commercial vehicles - will be exempted from the obligations until 2035. Manufacturers producing less than 1000 new vehicles per year would even be exempt in the future. Every two years, the Commission is to publish a report assessing progress towards zero-emission road transport and the corresponding difficulties. However, there are still some open questions that need to be answered sooner.   

It remains unclear at the moment to what extent climate-neutral fuels - such as e-fuels derived from green hydrogen or even BioCNG - will play a role in the green turnaround of the car industry. At a later stage, this will be examined by the EU Commission. Many of the parties would like to welcome e-fuels in the final law. After all, this would enable the industry to convert the internal combustion vehicles still on the roads by then for green operation - without having to shut them down or relocate them to car markets outside the EU.  

Another question that has not yet been specifically addressed by the European bodies is certainly how the coming end of the internal combustion engine could affect other environmentally protective transport measures already in force. These also include environmental zone regulations. Will these be adapted to the different levels of sustainability or climate neutrality of future new registrations, for example, as the number of internal combustion vehicles decreases? Or will all low emission zones be abolished across Europe when all vehicles with combustion engines will disappear from the roads many years after the actual EU ban?

In the coming days and weeks, the EU Commission should also present its plans for reducing CO2 emissions from trucks and buses. After all, it is important to find sustainable drive solutions - in order to create the conditions for emission-free transport and a clean future all round. Ultimately, private cars and small commercial vehicles are not the only ones behind traffic-related pollutant emissions. A large proportion of emissions are still attributable to larger vehicles. The decisions of the European Union regarding the transport policy to be pursued will certainly be followed with interest. Much depends on it.