The European Commission rolled back its controversial post-2035 ban on vehicles with an internal combustion engine (ICE) and moved to ease regulatory burdens on EU automakers, aiming to offset U.S. import tariffs and bolster competitiveness with Detroit.
Rather than requiring a 100% reduction in tailpipe emissions, automakers are now called on to lower emissions by 90% from 2021 levels with the remaining 10% offset through the use of EU-produced low-carbon steel, e-fuels, or biofuels.
The reformed legislative proposal will now allow for “plug-in hybrids, range extenders, mild hybrids, and internal combustion engine vehicles to still play a role beyond 2035, in addition to full electric and hydrogen vehicles,” the Commission said in a press release.
The change also includes provisions for automakers to benefit from “super credits” for small affordable electric cars made in the EU and proposes a targeted amendment to the CO2 emission standards for heavy-duty vehicles.
As part of the new automotive package, a $1.8B “Battery Booster” initiative will provide for the accelerated development of a fully EU-made battery value chain through the availability of interest-free loans and measures to encourage investment in EU battery manufacturers.
Finally, the EU is loosening the administrative burden to lower costs for European auto manufacturers and is introducing a new vehicle category under the Small Affordable Cars initiative that covers EVs up to 4.2 meters (13.78 feet) in length.
“This package will be a lifeline for the European automotive industry. We are pulling every lever at our disposal – simplification, flexibility, European preference, targeted support, and innovation,” said the European Commission’s Executive VP for Prosperity and Industrial Strategy, Stéphane Séjourné.
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