VDA Pushes Back Against EU's ICE Ban: A Softer Approach to Emissions Reduction
EU Membership Exit Desired by VDA
Gearing up against the EU's looming ban on new internal combustion engine (ICE) vehicles from 2035, the German Association of the Automotive Industry (VDA) has put forth a plan for a more flexible emissions reduction strategy. Instead of an outright prohibition on ICE vehicles, the VDA suggests a 90% reduction in CO2 emissions from new passenger cars by 2035 [3].
The VDA stands by this proposal, arguing that it allows for the continued registration of vehicles powered by synthetic fuels and plug-in hybrid vehicles boasting significant electric range after the deadline [3]. Additionally, they have requested a two-year transition period to help the industry accommodate the stricter CO2 limits set to take effect in 2030 and 2035 [3].
VDA President Hildegard Müller asserts that the automotive industry remains committed to the Paris climate goals but faces challenges, including weak demand in Europe, unfavorable framework conditions for electromobility, and economic hardships [1]. As such, she calls on Brussels to improve the state of electromobility in Europe by acknowledging these challenges and making adjustments accordingly [1].
Cost Concerns and Electric Vehicle Adoption
The VDA raises concerns about the cost effectiveness of electromobility, urging for lower charging electricity prices to enable a broader adoption of electric vehicles [2]. This is further supported by a recent report indicating that the price difference between electric vehicles (EVs) and ICE vehicles reached its lowest point since 2020 in May [4]. According to automotive expert Ferdinand Dudenhöffer, the average EV is now just €3,655 ($4,200 USD) more expensive than an average ICE vehicle, with discounts on new EVs reaching an all-time high of 17.4% [4].
However, Transport & Environment, an environmental group advocating for sustainable transportation policies, has criticized the VDA's proposal as a step backward for the transition to electromobility [5]. Julia Poliscanova, an expert at the organization, maintains that the automotive industry seeks to water down the 2035 targets even before making a serious effort to meet them [5]. Meanwhile, the world continues to embrace electromobility independently, raising concerns that the EU may fall behind if it fails to take decisive action [5].
Sources:[1] ntv.de[2] rts/AFP[3] as/rts/AFP[4] ntv.de[5] Transport & Environment
- Association of the Automotive Industry
- Electromobility
- Electric Vehicles
- Internal Combustion Engine Phase-out
- Ferdinand Dudenhöffer
- Prices
- EU
- CO2 Emissions
- Transport & Environment
(Enrichment data: The VDA's proposed exceptions include plug-in hybrid vehicles with significant electric range and cars powered exclusively by synthetic fuels. They have also requested a transition period to accommodate stricter CO2 limits and emphasized the need for electromobility to offer a clear cost advantage.)
- The VDA's proposed strategy for emissions reduction, which includes a 90% reduction in CO2 emissions from new passenger cars by 2035, suggests that the continued registration of vehicles powered by synthetic fuels and plug-in hybrid vehicles with significant electric range might be allowed after the deadline, providing exceptions within the community policy.
- Moreover, the VDA, in an attempt to make electromobility more affordable, has appealed to the EU for lower charging electricity prices, arguing that this step could facilitate a broader adoption of electric vehicles and align with the industry's financial interests, particularly in light of the price difference between electric vehicles and internal combustion engine vehicles reaching a historic low.
