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EU approves ban on new combustion engine vehicles by 2035

This week, the European Union made strides towards its plans to phase out the sale of new diesel and gasoline cars and vans after the EU and European Parliament reached a provisional agreement regarding the issue.

A statement released late last week from the European Parliament said negotiators had agreed on a deal related to the proposal for “zero-emission road mobility by 2035.” The EU’s goal is to reduce CO2 emissions from new vans and passenger cars by 100% from current levels, effectively banning new diesel and gasoline vehicles.

The provisional agreement would include a derogation, or exemption, for smaller manufacturers producing less than 10,000 new cars or 22,000 new vans through the end of 2035. It also indicated that “those responsible for less than 1,000 new vehicle registrations per year continue to be exempt.”

The European Council, the EU’s executive branch, and the European Parliament would need to reach a formal agreement before the plan would take effect.

The automotive industry has had varied reactions to the agreement, with environmental groups applauding the plan and the European Automobile Manufacturers Association urging policymakers to “shift into high gear to deploy the enabling conditions for zero-emission mobility.”

Oliver Zipse, CEO of BMW, said the decision was “extremely far-reaching” and “without precedent.”

“It means that the European Union will now be the first and only world region to go all-electric,” Zipse said, adding that the industry is “up to the challenge” but is “now keen to see the framework conditions which are essential to meet this target reflected in EU policies.”

Carlos Tavares, CEO of Stellantis, said the decision to ban pure ICEs is a “purely dogmatic decision” and added that he believes there is a need for a more pragmatic approach to managing the transition.

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