The European Union reaches an agreement on the end of thermal engines in 2035...Possibility of alternative technologies...Derogation for “niche” manufacturers

The European Union (EU) has endorsed the death certificate for new thermal engine vehicles for 2035. MEPs and Member States reached an agreement on Thursday evening, October 27, on this emblematic regulation for European climate objectives.

“Historic EU climate decision”has tweeted French MEP Pascal Canfin (Renew Europe), President of the Environment Committee of the European Parliament, after a few hours of negotiations.The Vice-President of the European Commission responsible for the European Green Deal, Frans Timmermans, welcomed an agreement which “sends a strong signal to industry and consumers: Europe is moving towards emission-free mobility”.

The approved text, which is based on a Commission proposal in July 2021, plans to reduce CO2 emissions to zero2 new cars in Europe from 2035. This is equivalent to the de facto cessation of sales of new petrol and diesel cars and light commercial vehicles in the EU on this date, as well as hybrids (petrol-electric), in favor of 100% electric vehicles.

While the car, the first mode of transport for Europeans, represents a little less than 15% of CO2 total in the EU, the new regulations must contribute to achieving the continent’s climate objectives, in particular carbon neutrality by 2050.

Read also: Article reserved for our subscribersElectric cars, the revolution in uses.This is the first agreement on a text of the European climate package (Fit for 55) aimed at reducing the EU’s greenhouse gas emissions by at least 55% by 2030 compared to 1990. It confirms the objective of reducing CO emissions2 for 2030 by −55% for new cars and −50% for new vans, compared to 2021.

“This agreement paves the way for a modern and competitive automotive industry in. the EU”welcomed the Czech Minister for Industry, Jozef Sikela, whose country holds the six-monthly Presidency of the Council of the EU, considering that “the deadlines envisaged made the objectives achievable for the manufacturers”.

An exemption is granted to manufacturers “niche” or those producing less than 10,000 vehicles per year, allowing them to be equipped with a heat engine until 2036. This clause, sometimes called “Ferrari amendment”will particularly benefit luxury brands.

Read also: The end of the heat engine, an essential shift
The negotiators agreed to “launch a process to have in 2025, after precise assessment of financial needs, a dedicated just transition fund for employees in the sector”, also underlined Pascal Canfin. The creation of such a transition fund was called for by Parliament, in particular to remedy the impact on employment.

The automotive industry directly or indirectly employs more than 13 million Europeans, or 7% of the EU job market, according to the European Manufacturers Association (ACEA).

A Commission proposal is also expected in 2023 to help accelerate the decarbonisation of the vehicle fleets of large companies, added Mr Canfin.

Possibility of alternative technologies
Under pressure from several countries, including Germany, the text addresses the possibility of a green light in the future for alternative technologies such as synthetic fuels (e-fuels) or rechargeable hybrid engines if these allow achieve the goal of completely eliminating greenhouse gas emissions from vehicles.

Frans Timmermans pointed out in June that “the overwhelming majority of car manufacturers have chosen electric cars”, while recalling the openness of the European executive to other technologies. He explained in particular:

“What we want are zero-emission cars. At present, e-fuels do not seem a realistic solution, but if manufacturers can prove otherwise in the future, we will be open. »

To respond to manufacturers concerned about insufficient consumer demand for 100% electric, the Commission recommends strongly developing charging stations, so that they are installed “every 60 kilometers”.

Read also Article reserved for our subscribersThe European policy for the installation of electric charging stations deemed to be very insufficient
Carlos Tavares, managing director of the Stellantis group, born from the merger of PSA and Fiat-Chrysler, also pointed the finger on Thursday at the cost of electric vehicles. “I don’t see today the middle class capable of buying electric cars at 30,000 euros”he said, during a visit to a commercial vehicle factory in Hordain (northern France). “In a world of rising interest rates, the level of assistance given today for an electric vehicle is not sustainable”he estimated.

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Taken on: January 6, 2023

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