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The European Commission announced on Wednesday that the regulations allowing only the sale of zero CO2 emission cars on the EU market from 2035 will remain in force. However, the EC will soon present changes that will give car manufacturers greater flexibility in implementing standards.
In response to concerns about the future of the automotive sector in Europe, the EC initiated a dialogue with the industry at the end of January. The culmination of this is the action plan for the sector adopted by EU commissioners on Wednesday, under which the EU will provide €1.8 billion over the next two years to support battery manufacturers in the EU. This money will come from the Innovation Fund; €3 billion, which the sector can use from 2024, comes from the same source.
Contrary to expectations, the Commission did not decide to propose changes to the regulation that requires new passenger and delivery vehicles to meet zero-emission standards from 2035. The EC believes that “the regulation on CO2 emission standards for passenger and delivery vehicles provides predictability for investors and manufacturers.”
As the EC announced on Wednesday, during the dialogue the sector’s need for a more flexible approach to CO2 emission targets was noted. In the near future, the Commission will present proposed changes that will allow car manufacturers to average their results in this area in 2025, 2026, and 2027. This will allow them to compensate for lower emission targets in one year with surpluses in subsequent years. The EC is expected to announce changes this March. This way, car manufacturers will avoid penalties for not meeting standards this year.
Transport Commissioner Apostolos Dzidzikostas announced that as part of reviewing the regulations, the EC will assess which other technologies may still play a role in achieving the EU’s reduction goals. The issue of potential alternatives, such as synthetic fuels, will be resolved by Brussels not in March, but later this year.
“The automotive sector is Europe’s pride, but it is also threatened,” said Dzidzikostas. He pointed to problems with supply chains, labor shortages, protectionism, and overreliance on imports of important raw materials.
The EC also wants to look into foreign investments. Any new proposals in this area are intended to ensure fair competition conditions for the European industry and producers from third countries.
Part of the plan presented on Wednesday is a communication on corporate fleets. The EC noted that vehicles purchased by legal entities, not individuals, account for 60% of cars registered in the EU. Out of 290 million cars in the EU, only 6 million are zero-emission vehicles. In the case of vans, buses, coaches, and trucks, the entire market is essentially corporate, as almost none of these vehicles are registered to private individuals. The EC believes that action in the corporate fleet segment could have a positive impact on the entire zero-emission car market.
“Accelerated demand for zero-emission vehicles from corporate fleets can help regain growth and competitiveness in the European automotive sector, reduce the overall operational costs during the vehicle’s lifespan for fleet operators, and assist consumers by improving the used car market offering, thereby reducing the costs of zero-emission vehicles,” the EC found.
However, the EC did not propose legislative action but limited itself to recommendations for Member States. (05.03.2025)