The European Union is accelerating its search for changes to the regulation that foresees stopping the sale of petrol and diesel vehicles by 2035. In the process initiated in the European Parliament, the current approach that completely closes the door to internal combustion engine vehicles is being debated for rewriting.
In April, the market share of electric vehicles in the European Union increased by 15.3% compared to the same month of the previous year but could not exceed 19.7%. This situation indicated that the transformation in the sector is not progressing as fast as expected and strengthened the basis for the new regulatory initiative.
Highlights
- The Environment Committee of the European Parliament has started to consider a proposal aiming to change the 2035 sales ban.
- The proposal defines a new zero-emission category only for vehicles running on renewable fuels.
- These vehicles are planned to be considered equivalent to electric vehicles due to their contribution to emission reduction.
- The vote at the committee stage is expected to take place by November.
- After the file, the text will be taken to the Parliament plenary and then to negotiations with the Council and the Commission.
New category on the agenda
The prepared draft foresees that vehicles running on biofuels and synthetic e-fuels will be classified as zero-emission vehicles from the exhaust. Thus, these vehicles can be evaluated within the same framework assuming they offer the same environmental contribution as electric cars.
This approach means a significant change in the EU rule, which has been in effect since 2023 and aims to effectively end the sale of fossil fuel vehicles as of January 1, 2035. On the Parliament front, the process has now moved to a more concrete stage.
How will the timeline work?
The Environment Committee is expected to decide on the draft by November. Then the text will be presented to the European Parliament plenary and from there will form the basis for negotiations with the European Council and the European Commission.
According to initial assessments, if the regulation reaches its final form, there is a possibility that the process will be completed by spring 2027. This indicates that discussions in the automotive sector will become even more intense in the upcoming period.
Context: The European Commission had also raised the possibility of a 90% rate instead of a full 100% electric transition in the 2035 target last December. The debate now starting at the Parliament level is seen as an effort to turn this step back signal into a more concrete legislative change.
Stefan Pan, Vice President responsible for the European Union at Confindustria, said the draft report overcame many problems in the European Commission's proposal and offered concrete solutions to the sector's concerns. Pan emphasized that the text should be accepted without weakening its content.