Berliner Boersenzeitung - EU eases 2035 combustion-engine ban to boost car industry

EUR -
AED 4.095102
AFN 72.480008
ALL 90.801688
AMD 402.807486
ANG 1.995737
AOA 1023.635334
ARS 1721.721299
AUD 1.61933
AWG 2.007127
AZN 1.900047
BAM 1.955836
BBD 2.250342
BDT 139.162586
BGN 1.948955
BHD 0.422108
BIF 3342.96213
BMD 1.115071
BND 1.431727
BOB 13.402249
BRL 6.138357
BSD 1.117321
BTN 104.873949
BWP 15.391286
BYN 3.345962
BYR 21855.38619
BZD 2.247142
CAD 1.573644
CDF 2586.964483
CHF 0.914162
CLF 0.027822
CLP 1094.980351
CNY 7.444774
CNH 7.438418
COP 3608.76707
CRC 506.709417
CUC 1.115071
CUP 26.815498
CVE 110.267049
CZK 24.346956
DJF 198.963698
DKK 7.480457
DOP 67.891262
DZD 151.940824
EGP 59.957114
ERN 16.726061
ETB 183.378708
FJD 2.526309
FKP 0.834974
GBP 0.834166
GEL 2.893653
GGP 0.834974
GHS 13.055243
GIP 0.834974
GMD 83.077063
GNF 9896.183924
GTQ 8.538159
GYD 234.234353
HKD 8.744429
HNL 30.029558
HRK 7.547925
HTG 146.432722
HUF 363.51345
IDR 20192.258205
ILS 3.552538
IMP 0.834974
INR 104.716854
IQD 1693.83148
IRR 2108992.359359
ISK 136.919964
JEP 0.834974
JMD 177.323296
JOD 0.790629
JPY 176.710877
KES 145.192698
KGS 97.510486
KHR 4552.084602
KMF 492.86165
KPW 1003.563608
KRW 1520.737678
KWD 0.346765
KYD 0.931217
KZT 500.809308
LAK 25136.46717
LBP 100053.859534
LKR 371.556906
LRD 189.94353
LSL 18.477643
LTL 3.292514
LVL 0.674496
LYD 7.150133
MAD 10.921803
MDL 19.971371
MGA 5077.094359
MKD 61.556144
MMK 2341.587311
MNT 4015.514918
MOP 9.019368
MRU 45.108838
MUR 52.442198
MVR 17.176258
MWK 1937.436008
MXN 20.766565
MYR 4.528864
MZN 71.257178
NAD 18.477643
NGN 1502.23485
NIO 41.120764
NOK 10.548462
NPR 167.798119
NZD 2.015128
OMR 0.428348
PAB 1.117421
PEN 3.848972
PGK 5.092095
PHP 70.369926
PKR 309.016043
PLN 4.399568
PYG 6984.129802
QAR 4.084276
RON 5.343646
RSD 117.622186
RUB 91.352798
RWF 1649.13065
SAR 4.188587
SBD 8.974739
SCR 15.358485
SDG 670.719139
SEK 11.033072
SGD 1.430306
SHP 0.835103
SLE 25.591287
SLL 23382.48045
SOS 638.511867
SRD 41.908265
STD 23079.712667
STN 24.500455
SVC 9.776182
SYP 14498.149201
SZL 18.471343
THB 37.411034
TJS 10.307092
TMT 3.902748
TND 3.343362
TOP 2.684822
TRY 55.9111
TTD 7.577141
TWD 36.546782
TZS 2952.454872
UAH 50.616941
UGX 4570.084937
USD 1.115071
UYU 44.950835
UZS 13332.247784
VES 999.456181
VND 28526.296796
VUV 132.393741
WST 3.108622
XAF 655.957
XAG 0.021465
XAU 0.000274244363
XCD 3.013535
XCG 2.013637
XDR 0.788413
XOF 655.957
XPF 119.331742
YER 263.853652
ZAR 18.420333
ZMK 10036.978597
ZMW 22.703422
ZWL 359.052318
SSP 6406.340367
MXV 2.33632
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

EU eases 2035 combustion-engine ban to boost car industry
EU eases 2035 combustion-engine ban to boost car industry / Photo: Fred TANNEAU - AFP

EU eases 2035 combustion-engine ban to boost car industry

The EU on Tuesday walked back a 2035 ban on new petrol and diesel cars seen as a milestone in the fight against climate change, as the bloc pivots to bolstering its crisis-hit auto sector.

Text size:

Under proposals decried by environmental groups, carmakers will now have to cut exhaust emissions from new vehicles by 90 percent from 2021 levels -- down from an envisaged 100 percent -- with the remainder "compensated" in various ways.

The EU's industry chief, Stephane Sejourne, insisted the bloc's green ambitions stood intact as he put forward a plan billed as a "lifeline" for Europe's auto industry.

"The European Commission has chosen an approach that is both pragmatic and consistent with its climate objectives," he told AFP.

The combustion-engine ban was hailed as a major win in climate fight when adopted in 2023.

But carmakers and their backers have lobbied hard over the past year for Brussels to relax it, in the face of fierce competition from China and a slower-than-expected shift to electric vehicles (EVs).

Weakening the ban is the most striking result yet of a pro-business push that has seen the EU pare back a slew of environmental laws this year -- on the grounds they risk weighing on growth.

In practice, automakers will still be able to sell a limited number of polluting vehicles -- from plug-in hybrids to diesel cars -- past 2035.

To do so, they will have to compensate for the planet-warning emissions these cars spew into the atmosphere through two types of carbon credits.

The first will be generated by the use of made-in-Europe, low-carbon steel in car manufacturing.

The second will be outside carmakers' hands and tied to the amount of e-fuels and biofuels that energy companies put on the market every year.

- Condemned to 'decline' -

Beset by announcements of job cuts and factory closures over the past year, Europe's auto industry -- which employs almost 14 million people and accounts for about seven percent of Europe's GDP -- had maintained that the 2035 goal was no longer realistic.

High upfront costs and the lack of adequate charging infrastructure in parts of the 27-nation union mean consumers have been slow to warm to EVs, producers say.

Just over 16 percent of new vehicles sold in the first nine months of 2025 run on batteries, according to industry figures.

Manfred Weber, the conservative head of the EU parliament's largest group, welcomed the new target, saying that "forbidding technologies" would be a gift to far-right populists.

Critics, including Spain, France and the Nordic countries, had warned that ditching the ban risked slowing the shift to electric, undermining the EU's green agenda and deterring investments in electrification.

"To claim that tomorrow's jobs and innovations still lie in diesel or petrol engines, when the rest of the world has embarked on an industrial race towards batteries and electric vehicles, is to condemn the French and European automotive industry to decline," said Neil Makaroff, director at Strategic Perspectives, a think tank.

- Green fleets -

The commission also unveiled a slew of additional measures to support the auto sector as part of a package that needs approval from the EU parliament and member states.

In the run-up to 2035, carmakers will benefit from "super credits" for small "affordable" electric cars made in the EU, in an accounting trick that would make reaching emission targets easier.

This would mean that sales of electric cars under 4.2 metres in length will be counted 1.3 times, thus artificially boosting the share of zero-emission cars in an automakers fleet.

The commission also proposed reducing the interim 2030 emission target for vans from 50 to 40 percent and allowing truck manufacturers more time to meet their own 2030 target, in line with a previous concession to automakers.

To boost EV sales, medium and large firms will be required to green their fleets, which currently account for about 60 percent of new car sales in Europe.

At least 30 percent of new vehicles bought by companies will need to be zero- or low-emission, under targets that will differ from country to country, with the bar set higher for richer nations.

Finally, the EU will provide 1.5 billion euros to support European battery producers through interest-free loans.

Road transport accounts for about 20 percent of total planet-warming emissions in Europe, and 61 percent of those come from cars' exhaust pipes, according to the EU.

(Y.Yildiz--BBZ)