Europe Saves Combustion Engine in Reversal of Controversial Ban

The European Union pulled back from an effective ban on combustion engines and offered more flexibility for carmakers in the transition to cleaner transport after months of industry pressure.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — The European Union pulled back from an effective ban on combustion engines and offered more flexibility for carmakers in the transition to cleaner transport after months of industry pressure.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The move suggests a slower rollout of electric vehicles in Europe and aligns the region more closely with the US, where President Donald Trump is tearing up efficiency standards for cars put in place by the previous administration. Globally, automakers are struggling to make the shift profitable, with Ford Motor Co. announcing on Monday that it will take $19.5 billion in charges tied to a sweeping overhaul of its EV business.Under the new proposals, the EU will ease requirements that would have halted sales of new gasoline and diesel-fueled cars starting in 2035. Tailpipe emissions will have to be cut by 90% by the middle of the next decade compared with the current goal of a 100% reduction.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The revision will allow automakers to continue selling a number of new cars with internal combustion engines as well as plug-in hybrids and range extenders, the European Commission said on Tuesday. The bloc set a condition that carmakers will need to compensate for the extra pollution by using low-carbon or renewable fuels, or locally produced green steel.It’s the latest step in a global pullback from green policies as the economic realities of the shift to low-carbon energy set in. Mounting trade tensions with the US and China are also pushing Europe to further prioritize shoring up its domestic industries, in part by mitigating the cost of the transition. Although the bloc is legally bound to reach climate neutrality by 2050, governments and companies are intensifying calls for more flexibility, warning that rigid targets could jeopardize economic stability.“This package will be a lifeline for the European automotive industry,” Stephane Sejourne, executive vice-president of the commission, said in a statement. “We are pulling every lever at our disposal — simplification, flexibility, European preference, targeted support and innovation.”The commission also proposed additional leeway for producers to meet their 2030 emissions target for cars and vans, allowing them to average it out over a period of three years. Additional flexibility was offered for vans, where the pollution-reduction target for the end of this decade was cut to 40% from 50%. The proposal adopted by EU commissioners will now be discussed by the European Parliament and by member states in the EU Council. Each institution has the right to propose their own amendments and the final shape of the measure will be negotiated in the so-called trilogue talks, which will involve the parliament, the council and the commission.With automakers now gaining more time to go fully electric, environmental groups are concerned the changes create new loopholes that undermine Europe’s climate ambition and leave key car manufacturers further behind China in the race to battery-powered road transport.The dilution of the emissions target for cars underscores the gap between regulatory assumptions at the height of enthusiasm over Europe’s Green Deal and the current geopolitical and economic situation the continent is facing. One of the milestones set by the commission in its 2023 mobility strategy saw at least 30 million zero-emission cars on Europe’s roads by the end of the decade. At the end of last year, there were about 5.9 million pure-electric vehicles on EU roads, according to the commission. At the same time, China continues its rapid electrification of transport and foreign brands are being muscled aside in the world’s biggest car market. Even in their home countries, European carmakers are facing a growing competitive threat from Chinese imports, with new tariffs thrown up by the EU offer only limited protection. The situation prompted intense lobbying from Stellantis NV, Mercedes-Benz Group AG and others. The government in Germany, home to Mercedes, Volkswagen AG and BMW AG, also pushed for changes to ease political tensions and protect jobs. Earlier this month, six prime ministers including Italy’s Giorgia Meloni and Poland’s Donald Tusk lobbied the commission to allow plug-in hybrids, range extenders and fuel-cell technology after 2035. Sales of new battery-electric cars slowed last year after countries including Germany — the EU’s biggest market — withdrew purchase incentives. Although growth is recovering, helped in part by the return of some subsidies, the pace remains well short of what’s required to meet EU targets.Uptake across the region is uneven. Registrations of pure EVs accounted for 35% of sales in the Netherlands this year, compared with just 8% in Spain, where patchy charging options and comparatively high prices continue to put off buyers.The EU’s new proposals also includes steps to make corporate vehicle fleets greener and increase the uptake of small electric vehicles made in Europe. EVs less than 4.2 meters in length will benefit from a system of “super credits” allowing them to contribute more to emissions targets. They’ll also gain a 10-year exemption from certain safety requirements and benefit from incentives in the form of parking spaces and subsidies.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. 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