EU auto summit: Commission sticks to 2035 goal, mulls incentives for small EVs

It may not come as a surprise – since the information had already leaked beforehand – but European Commission President Ursula von der Leyen will stick to the zero-emission target for 2035. However, she now plans to continue talks with the heads of Europe’s car industry as early as December – and examine, among other things, a new regulatory category for small EVs by then.

The relaunch of the Commission’s “Strategic Dialogue” with Europe’s car industry ended with a postponed decision. That had already been apparent before Friday’s meeting: a leaked draft paper showed that a swift departure from the 2035 zero-emission target is not on the table. The Commission still considers a full phase-out of petrol and diesel technology by 2035 to be “achievable”. Parts of Europe’s car industry have been pushing for a softening of this benchmark.

But the Commission is willing to make a concession. According to media reports, von der Leyen will continue the talks in December and review the current CO2 regulation. As a result, the industry has secured an earlier start to the review of CO2 targets, originally scheduled for 2026 but now expected to begin in 2025.

And: the Commission is apparently considering a new regulatory category for small EVs. These could benefit from lower taxation and gain additional credits towards meeting CO2 reduction targets.

Top managers and lobbyists, especially from Germany, have been railing for months against the EU’s 2022 decision to allow only new cars with zero CO2 emissions per kilometre from 2035 – effectively a ban on new combustion models. Mercedes CEO and ACEA President Ola Källenius recently wrote to von der Leyen, urging the EU to “adapt its policy to today’s market, geopolitical and economic realities – or risk endangering one of its most successful and globally competitive industries”. Källenius argued that there must remain room for “(plug-in) hybrids, range extenders, highly efficient combustion-engine vehicles, hydrogen and decarbonised fuels”. But there are other voices: Audi boss Gernot Döllner sees the debate as counterproductive, while Volvo also backs the current regulation.

How far the Commission is willing to go remains open. According to FAZ, two working groups will now be launched. The first will focus on which technologies and fuels can deliver the 2035 target (buzzword: technology neutrality). The second will draft the above-mentioned proposal for small, affordable EVs. The aim: to stimulate demand for small EVs made in Europe. “One approach is apparently to give small EVs a bonus in the CO2 targets,” writes the FAZ. “That way, by 2035, selling one small EV could offset the CO2 emissions of several combustion cars.”

Meanwhile, the International Council on Clean Transportation (ICCT), based in Berlin, has just published study results showing that carmakers are on track to meet the 2027 CO2 targets – thanks to rising EV sales.

faz.net (in German), reuters.com

This article was first published by Cora Werwitzke for electrive’s German edition.