Europe's largest political faction is stirring up the prohibition on fossil fuel-based engine operations
Europe's largest political faction is stirring up the prohibition on fossil fuel-based engine operations
The Europe-based automotive sector is experiencing a rough patch with diminished demand and intense competition from the East. The proposed 2035 ban on traditional combustion engines arrives at an inconvenient moment. Currently, the most influential faction in the EU Parliament, the European People's Party (EPP), is advocating for a reconsideration of this plan.
According to an internal document obtained by Reuters, the EPP advocates for the abolition of the ban on the sale of new vehicles that emit CO2 after 2035. Instead, they suggest permitting the sale of vehicles with combustion engines, powered by biofuels and alternative fuels, after the stated date. Additionally, the EPP supports the development of plug-in hybrids.
The reasoning behind this proposal stems from the challenges the European automotive industry is encountering, including weak demand, competition from China, and low sales of electric vehicles. The EPP recommends postponing the 2025 CO2 limits to 2027 and modifying the calculation method to evaluate compliance with regulations for car manufacturers.
Presently, Eu-wide legislation, referred to as fleet limits, is set to lower the permitted average CO2 emission for new cars from manufacturers next year. Furthermore, beginning in 2035, no new cars with traditional combustion engines will be permitted to be registered. Failure to meet the specified average values may result in penalties for manufacturers.
Notably, companies like Volkswagen and Renault may face hefty fines among car manufacturers, but opponents such as BMW and the Stellantis group, which includes brands such as Fiat, Peugeot, and Opel, have recently voiced objections to relaxing the EU regulations.
The EPP's position paper is set for publication on Wednesday. The group wields substantial political power, as the majority of the 27 members of the new European Commission hail from its ranks, including President Ursula von der Leyen.
The EPP's proposal to abolish the ban on vehicles with combustion engines after 2035 and permit their sale with biofuels and alternatives is based on the European Automotive Industry's EPC, which includes challenges like weak demand, competition, and low electric vehicle sales.
In light of the proposed EPC recommendations, the EPP also suggests postponing the 2025 CO2 limits to 2027 and modifying the compliance calculation method for car manufacturers.