The EU will allow more ICE cars to be sold after 2035 after its Environment Committee approved a proposal to lower CO2 reduction targets to 87.5%, down from 100%.
The committee also voted in favour of a proposal to allow “vehicles running exclusively on eligible fuels” (VEEFs), including biofuels, to be classed as zero-emissions as well as establishing ‘super-credits’ for small and ultra-efficient electric cars built in the EU.
The vote on 4 November was given a cautious welcome by European car industry body the ACEA, which acknowledged the “pragmatic” approach and extra flexibility.
However, the ACEA said more was needed: “For passenger cars this remains too limited in scope and duration to adequately address the industry’s concerns."
Toyota called it a “welcome step” while also calling for more flexibility in a statement to Autocar.
European car makers have been pushing to allow more ICE car sales after 2035 as they struggle to lower the cost of EV batteries.
ICE cars are more profitable for this reason, even as EV sales have soared across Europe this year on account of the increase in petrol and diesel fuel prices.
The 87.5% figure refers to the reduction from the 2021 baseline target and now gives car makers room to sell more combustion-engine models.
A projection by the green lobby group Transport & Environment estimates that car makers could avoid falling foul of the new rules in 2035 even with a 50% sales mix for range-extender EVs.
Under the changes, car makers will have to offset up to 7.5% of their emissions by using credits for EU-made low-carbon steel.
Those companies building EVs up to 4.2m long in the EU will qualify for super-credits meaning every car they sell will count for 1.4 EVs, thus allowing them to sell more ICE cars.
Ultra-efficient EVs over that size would collect credits worth 1.2 sales if they’re made in the EU.
No details on the efficiency targets were announced, but it will probably focus on those achieving above 15kWh per 100km, or 4.0mpkWh.
The UK is currently negotiating for cars made here to qualify under the scheme.
Other concessions made to manufacturers voted for by the Environment Committee include reducing CO2 emissions for vans by 35% in 2030, compared with 40% in the original proposal and 50% under the existing rules. The 2035 target would decrease from 100% to 80%.
The changes are part of a wider package of measures designed to strengthen automotive manufacturing in the EU as it comes under attack from more agile Chinese competitors offering cheaper electrified models.
These measures include accelerating the development of an EU-made battery value chain as well as reducing the legislative burdens.
