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EC Backs Down: Automakers Relief Amidst Struggles

by Victoria Sterling -Business Editor

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EU to Reconsider 2035 ⁣Ban on New Combustion Engine Vehicle sales

Last updated: December 17,2023,06:44:19 AM‍ PST

The Original 2035 Ban: A Landmark Climate Decision

In 2023,the⁣ European Union finalized a regulation mandating that​ all new cars and vans sold within the bloc from 2035 must be zero-emission. This effectively phases​ out the sale of new vehicles powered ‍by traditional internal combustion⁣ engines (ICE) – gasoline, diesel, and hybrid – as part of a⁢ broader effort to achieve climate neutrality by 2050.The regulation aimed to drastically reduce greenhouse gas emissions from the​ transportation sector,a⁣ significant contributor to climate change.

The EU’s decision stemmed from a commitment to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels, as outlined in ​the European Climate Law. Transport accounts for‍ roughly ⁣a quarter of the EU’s⁤ greenhouse gas emissions, ⁣making it a crucial ‍area for decarbonization. The​ regulation builds on existing CO2 emission standards for ​cars and vans, which have been progressively tightened over the years.

The Backlash and Calls for Review

The 2035 ban wasn’t without its critics. Germany,a major automotive manufacturing hub,voiced strong⁤ concerns,as did the German‌ Association of the ‌Automotive Industry (VDA). In⁤ late ⁢2023, ‌Germany formally ‌requested a review of the regulation, citing concerns about the pace of the transition and the⁣ potential impact​ on the​ german economy and‍ jobs. Reuters reported on these concerns in November 2023.

Specifically, the German government argued that the ‍technology​ for widespread adoption of ​electric vehicles (EVs) -⁢ including battery technology, charging infrastructure, and the availability of sustainably sourced materials – might not be fully mature by 2035. They also raised questions about ​the affordability of EVs for ⁣all segments of the population and ⁣the potential ​for disruption to the automotive⁣ supply chain. ‌ The VDA emphasized the need for ⁢continued ⁤growth of synthetic ​fuels (e-fuels) as a potential pathway to decarbonize existing ICE vehicles.

the European‍ Commission’s Response

Responding to the pressure, the European Commission announced‍ in ​early 2024 that it would initiate a review of the Euro 7 emission standards, which are closely‍ linked to ⁤the 2035 ban.⁣ Politico reported that the ​review will consider the feasibility of allowing continued use⁢ of ICE vehicles powered by e-fuels after 2035. This signals ​a potential softening of the original stance.

The Commission’s decision ⁤to review the regulation doesn’t guarantee ⁢its reversal. Though, ⁢it opens the door to potential compromises. Possible outcomes include allowing a⁤ limited number of ICE vehicles powered by e-fuels to be sold after 2035, ⁤extending the deadline for the ban, or revising the emission standards to make it easier for ICE vehicles to comply.

What are E-fuels and Why are They Important?

E-fuels, or synthetic⁣ fuels, are produced using renewable energy sources – such‍ as solar or⁢ wind‍ power – to

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