The European Commission recognised the needs of the Automotive industry – Internal combustion engines after 2035
Warnings, requests and appeals from ACEA (the European Automobile Manufacturers’ Association) have borne fruit, and the European Commission has adopted the “Automotive Package”, which is intended to help Europe’s automotive industry more easily achieve its decarbonisation targets while maintaining competitiveness.
The European Commission has taken a first step towards creating a more pragmatic and flexible path that aligns decarbonisation with the goals of competitiveness and resilience.
“These proposals rightly recognise the need for greater flexibility and technological neutrality if the green transition is to succeed. This represents a major shift compared to the current legislation,” said Sigrid de Vries, Director General of ACEA, the European Automobile Manufacturers’ Association. “However, the devil may be in the details. We will now analyse the package and work with legislators to critically strengthen the proposals where necessary.”
The Commission has presented the Automotive Package to support the sector’s efforts in the transition to clean mobility. It establishes an ambitious yet pragmatic policy framework to ensure climate neutrality and strategic independence by 2050, while at the same time providing greater flexibility for manufacturers. It also responds to calls from EU industry to simplify regulations.
“This ‘package’ maintains a strong market signal for zero-emission vehicles, while giving industry greater flexibility in meeting CO₂ targets, and supports vehicles and batteries produced in the European Union. The Corporate Vehicles Initiative will support the uptake of zero- and low-emission vehicles. The Automotive Omnibus increases competitiveness by cutting costs—expected to amount to approximately €706 million per year—and reducing bureaucracy, while at the same time providing greater investment certainty,” the European Commission stated.
The Commission presented a package that addresses both supply and demand in the automotive sector’s transition. On the supply side, it introduces a review of existing CO₂ emission standards for cars and vans and a targeted amendment for heavy-duty vehicles. On the demand side, it proposes an initiative for the decarbonisation of corporate vehicle fleets with binding national targets for zero- and low-emission vehicles.
From 2035 onwards, car manufacturers will have to comply with a 90% reduction target for exhaust emissions, while the remaining 10% of emissions will have to be offset through the use of low-carbon steel produced in the EU or through electricity and biofuels. In practice, this means that internal combustion engine vehicles, plug-in hybrids and conventional hybrids will remain in production even after 2035.
Before 2035, manufacturers will be able to use “super credits” for small, affordable electric vehicles produced in the European Union. This is a completely new category of passenger cars, where vehicle length must be under 4.2 metres and the vehicle must be fully electric. This is expected to encourage the market entry of more small electric models. For the 2030 targets for cars and vans, additional flexibility is introduced through “banking and borrowing” of credits for the 2030–2032 period. Additional flexibility is also granted for the van segment, where the uptake of electric vehicles is structurally more challenging, by reducing the CO₂ reduction target for vans for 2030 from 50% to 40%.
The Commission also proposes a targeted amendment to CO₂ emission standards for heavy-duty vehicles, introducing flexibility that will facilitate compliance with the 2030 targets.
As regards corporate vehicles, mandatory targets are set at Member State level to support the uptake of zero- and low-emission vehicles by large companies. Having more zero- and low-emission vehicles on the market, both new and used, will benefit all buyers. Since company cars cover higher annual mileage, this also leads to greater emission reductions. Zero or low emissions and the “Made in the EU” label will also become a prerequisite for vehicles benefiting from public financial support.
With €1.8 billion, the “Battery Booster” programme will accelerate the development of batteries fully produced in the EU. As part of this programme, €1.5 billion will be allocated to support European battery cell manufacturers through interest-free loans.
The Automotive Omnibus will reduce administrative burdens and costs for European manufacturers, increasing their global competitiveness and freeing up resources for decarbonisation. Companies are expected to save approximately €706 million per year.
ACEA welcomes the “increased attention” given to light commercial vehicles (LCVs), a segment under significant pressure, through averaged compliance and the 2030 reduction target, as well as a range of measures within the Automotive Omnibus.
Similarly, the targeted amendment for heavy commercial vehicles is a positive first step that now requires rapid adoption. This must be followed by an accelerated review of the CO₂ Regulation for heavy-duty vehicles, which cannot wait until 2027. The sector needs an urgent assessment and regular monitoring of the most critical conditions for its transition.
ACEA also notes that the Commission has put forward proposals to make the production of small cars in Europe more competitive, as part of the Automotive Omnibus, which deserve closer scrutiny and clearer guidance and purpose regarding the allocation of “super credits”. Announced measures for mandatory greening of corporate fleets risk running counter to the necessary market- and incentive-based approach. The industry supports incentives and enabling conditions across all vehicle segments. Heavy-duty vehicles also require appropriate demand-side stimulation measures, ACEA concludes in its response to the Commission’s measures.
Source: European Commission, ACEA
English
Serbian
