BRUSSELS/LONDON/STOCKHOLM, Dec 15 (Reuters) – The European Commission is expected on Tuesday to overturn an effective EU ban on sales of new combustion engine cars from 2035, bowing to intense pressure from Germany, Italy and European automakers struggling against Chinese and American ones.
The move, the details of which are still being hashed out by EU officials ahead of its unveiling, could see the effective ban pushed back by five years or softened indefinitely, official and industry sources said.
A possible amendment to a 2023 law requiring all new cars and vans sold in the 27-nation bloc to be CO2 emissions-free from 2035 would be the most significant climb from the European Union’s green policies of the past five years.
“The European Commission will put forward a clear proposal to lift the ban on combustion engines,” Manfred Weber, head of the European Parliament’s largest group, the European People’s Party, said on Friday. “This was a serious industrial policy mistake.”
The region has been divided since the ban was withdrawn. Traditional automakers such as Volkswagen and Fiat-owned Stellar have worked hard to ease targets amid stiff competition from lower-cost Chinese rivals. The EV sector, however, sees it as giving China more ground in the electrification shift.
“The technology is ready, the charging infrastructure is ready, and consumers are ready,” said Michael Lohscheller, CEO of EV maker Polestar. “So what are we waiting for?”
Combustion Engines for the ‘Rest of the Century’
The 2023 law was designed to accelerate the transition from combustion engines to batteries or fuel cells and the best automakers that failed to meet the targets.
Meeting the targets means selling more electric vehicles, with European carmakers outpacing Tesla and Chinese manufacturers such as BYD and Geely.
Europe’s carmakers are building EVs, but say demand is relatively low because consumers are reluctant to buy expensive EVs and charging infrastructure is inadequate. EU tariffs on Chinese-made EVs have only slightly eased the pressure.
“It’s not a sustainable reality in Europe today,” Ford CEO Jim Farley told reporters in France last week, announcing a partnership with Renault to help drive down EV costs. Industry requirements were not “well balanced” with EU CO2 targets, he said.
The EU granted “breathing space” to the sector in March, allowing automakers to meet 2025 targets in three years.
But automakers want to continue selling combustion engine models alongside plug-in hybrid, range extender EVs with ‘CO2-neutral’ fuels – including biofuels made from waste such as agricultural residues and used cooking oil.
