Pressure building against Euro ICE ban
After criticism from carmakers and some governments to the European Union’s accelerated timeline for phasing out combustion engines, some politicians are now opposing the 2035 ban on internal combustion engines (ICE). The European People’s Party (EPP), apparently the largest political group in the European Parliament, is pressuring EU leaders to reconsider. According to a draft paper obtained by Reuters, the EPP argues the ban “should be reversed.”
The EPP proposes allowing combustion engines to remain in cars powered by alternative fuels beyond 2035. The draft also suggests that manufacturers should continue selling plug-in hybrids past the deadline. Meanwhile, diminishing demand for electric vehicles (EVs) has led many European brands to scale back their EV plans.
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The EPP also seeks to delay stricter emissions regulation, advocating for implementation in 2027 instead. This postponement aims to protect companies from incurring significant fines. Under current rules, the fleet average emissions target of 115.1 g/km (calculated using the WLTP cycle) will drop by about 19 per cent to 93.6 g/km in 2025. Exceeding these targets will see car makers facing a €95 fine for each gram of excess emissions per vehicle.
Renault CEO Luca de Meo estimates the industry could face fines as high as €15 billion. Others say the changes would also impact jobs, many of which are already at risk in Europe. Volkswagen, for example, is considering shutting down three factories in Germany to reduce expenses with an eye to the incoming fine system.
Not all car makers are against the stricter regulations. BMW CEO Oliver Zipse opposes delaying the tougher targets, noting automakers have had five years to prepare. Achieving compliance largely depends on whether a company can sell enough EVs to offset emissions from its ICE vehicles.
