The European Union could ease its planned 2035 vehicle emissions rules, allowing combustion-powered cars to remain on the market under a revised proposal from France and Germany. The plan would require a 90% reduction in vehicle emissions from 2021 levels rather than a complete ban on combustion cars, while removing the requirement to offset the remaining emissions.
EU Could Drop Its Complete Ban on Combustion Cars
European automakers faced growing concerns last year over proposed EU emissions requirements that called for substantial reductions over the coming decade and a complete ban on combustion-powered cars by 2035.
With electric vehicle adoption slowing, automakers were concerned about meeting the requirements while continuing to sell vehicles that consumers would be willing to buy.
The EU is now considering changes that would ease the planned restrictions. The proposal would retain a requirement to cut vehicle emissions by 90% from 2021 levels but would no longer require automakers to eliminate combustion-powered vehicles entirely.
New Proposal Would Remove Remaining Emissions Requirement
The revised plan would also change how automakers handle the remaining 10% of emissions. Under the earlier proposal, manufacturers would have needed to offset those emissions through various measures, including the use of different fuels.
Under the new plan, automakers would no longer be required to mitigate the remaining 10% of emissions.
France and Germany jointly presented the proposal, with Italy also supporting the changes. The three countries represent a significant share of Europe’s automotive industry.
Proposal Adds EU Content Rules for Government Purchases
The proposal includes another requirement affecting vehicles purchased by EU governments and vehicles covered by government incentive programs. Under the plan, those vehicles would need to meet a specified percentage of EU content.
The provision would determine which countries qualify under the rules based on their status in the marketplace at the beginning of 2020. This would include the United Kingdom despite its departure from the European Union.
The proposed changes would maintain a substantial vehicle emissions reduction target while allowing combustion-powered cars to remain on the market beyond 2035. The plan would also introduce EU content requirements for vehicles purchased by governments or supported through government incentive programs.
