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

EUR -
AED 4.228601
AFN 74.833361
ALL 93.368461
AMD 421.345853
AOA 1055.725524
ARS 1720.442591
AUD 1.644219
AWG 2.075186
AZN 1.957638
BAM 1.953988
BBD 2.318419
BDT 142.136432
BHD 0.434151
BIF 3448.08995
BMD 1.151282
BND 1.476235
BOB 14.014027
BRL 5.875109
BSD 1.151062
BTN 109.687113
BWP 15.655595
BYN 3.36486
BYR 22565.129553
BZD 2.315092
CAD 1.617379
CDF 2604.199995
CHF 0.932651
CLF 0.026975
CLP 1065.119884
CNY 7.774148
CNH 7.779686
COP 3732.491172
CRC 522.880935
CUC 1.151282
CUP 30.508976
CVE 110.810701
CZK 24.210424
DJF 204.606039
DKK 7.476774
DOP 67.06257
DZD 153.098144
EGP 57.707622
ERN 17.269232
ETB 184.032191
FJD 2.552848
FKP 0.853959
GBP 0.857533
GEL 3.00444
GGP 0.853959
GHS 13.481604
GIP 0.853959
GMD 85.19455
GNF 10073.718812
GTQ 8.78232
GYD 241.199513
HKD 9.028204
HNL 30.923824
HRK 7.537098
HTG 150.500598
HUF 364.196894
IDR 20686.237133
ILS 3.504083
IMP 0.853959
INR 109.752185
IQD 1508.179577
IRR 1583300.735567
ISK 142.02184
JEP 0.853959
JMD 182.340574
JOD 0.81622
JPY 180.974677
KES 148.941474
KGS 100.679921
KHR 4648.293214
KMF 492.749181
KRW 1645.642025
KWD 0.356334
KYD 0.959256
KZT 546.030326
LAK 26018.975923
LBP 103097.313717
LKR 386.479698
LRD 208.670223
LSL 19.031011
LTL 3.399437
LVL 0.696399
LYD 7.327875
MAD 10.746931
MDL 20.098223
MGA 4944.756582
MKD 61.459523
MMK 2417.327659
MNT 4137.165176
MOP 9.298051
MRU 46.155253
MUR 53.845304
MVR 17.787768
MWK 1999.777118
MXN 19.947569
MYR 4.715194
MZN 73.568485
NAD 19.030311
NGN 1570.486648
NIO 42.090482
NOK 10.995886
NPR 175.500542
NZD 1.961633
OMR 0.442661
PAB 1.151052
PEN 3.908034
PGK 5.088234
PHP 70.11879
PKR 319.854967
PLN 4.31257
PYG 6866.213717
QAR 4.197286
RON 5.247311
RSD 117.353658
RUB 92.567523
RWF 1690.082152
SAR 4.308707
SBD 9.292178
SCR 15.723088
SDG 690.769729
SEK 11.016853
SGD 1.476055
SLE 28.149072
SOS 657.849808
SRD 43.525378
STD 23829.215456
STN 24.867694
SVC 10.071827
SZL 19.03088
THB 38.417821
TJS 10.630201
TMT 4.029487
TND 3.385347
TRY 54.73023
TTD 7.805252
TWD 37.313515
TZS 3045.446291
UAH 51.633991
UGX 4307.761094
USD 1.151282
UYU 46.294446
UZS 13831.503545
VES 860.987949
VND 30263.75309
VUV 137.060315
WST 3.14817
XAF 655.312162
XAG 0.019784
XAU 0.000284
XCD 3.111398
XCG 2.07455
XDR 0.813762
XOF 656.809703
XPF 119.331742
YER 274.468468
ZAR 19.004333
ZMK 10362.917244
ZMW 21.632431
ZWL 370.712373
  • CMSC

    -0.0800

    21.76

    -0.37%

  • RIO

    -0.9500

    95.9

    -0.99%

  • BCC

    6.6500

    83.03

    +8.01%

  • NGG

    -0.1100

    79.86

    -0.14%

  • BCE

    0.1100

    21.79

    +0.5%

  • JRI

    -0.1400

    12.82

    -1.09%

  • GSK

    -0.1800

    51.51

    -0.35%

  • RBGPF

    -3.2100

    66

    -4.86%

  • AZN

    -11.6700

    157.97

    -7.39%

  • CMSD

    -0.0900

    22.02

    -0.41%

  • RYCEF

    0.7000

    20.2

    +3.47%

  • BTI

    -1.0900

    59.56

    -1.83%

  • VOD

    -0.1700

    15.61

    -1.09%

  • BP

    -0.9600

    44.26

    -2.17%

  • RELX

    0.7400

    36.16

    +2.05%

EU weakens 2035 combustion-engine ban to boost car industry

EU weakens 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 slammed by green groups as an act of "self-sabotage", carmakers will have to cut exhaust emissions from new vehicles by 90 percent from 2021 levels -- down from an envisaged 100 percent.

This means that in practice automakers will still be able to sell a limited number of polluting vehicles -- from plug-in hybrids to diesel cars -- beyond 2035, provided the resulting emissions are "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 the climate fight and a key tool to drive investments in electrification 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).

Europe's biggest automaker Volkswagen welcomed the move as "pragmatic" and "economically sound", while German Chancellor Friedrich Merz said allowing for "more openness to technology and greater flexibility" was the right step.

Germany's leading auto industry group VDA however called the proposals "disastrous".

- 'Self-sabotage' -

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.

"This backward industrial policy is bad news for jobs, air quality, the climate, and would slow down the supply of affordable electric cars," said Greenpeace Germany's executive director, Martin Kaiser.

Post 2035, carmakers will have to compensate for planet-warning emissions spewed by combustion-engine vehicles through credits generated by the use of made-in-Europe, low-carbon steel and e-fuels and biofuels put on the market by energy firms.

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.

Critics, including Spain, France and the Nordic countries, had warned that ditching the ban risked slowing the shift to electric, deterring investments.

While the French presidency called the EU's auto plan "balanced" overall, the country's environment minister slammed the "flexibility" granted for petrol and diesel cars, and said Paris hoped to stop it from becoming law.

"Every euro diverted into plug-in hybrids is a euro not spent on EVs while China races further ahead," said William Todts, director of the clean-transport advocacy group T&E.

"Weakening the CO2 standards for cars is an act of self-sabotage," added Linda Kalcher of 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.

Brussels 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.

And 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.

(T.Burkhard--BBZ)