EU plays down plan to halt sales of new petrol and diesel cars by 2035

The European Commission has played down plans to ban the sale of new petrol and diesel cars by 2035.

Current regulations state that new cars sold from that date should be “zero-emission”, but carmakers, particularly in Germany, have lobbied hard for concessions.

Under the European Commission’s new plan, 90% of new cars sold from 2035 must be zero-emission, rather than 100%.

European car manufacturers association ACEA said the current market demand for electric vehicles is too low and manufacturers will face penalties of “billions of euros” if the rules are not changed.

The remaining 10% are likely to be conventional petrol or diesel cars and hybrids.

Carmakers are expected to use EU-made mild steel in the vehicles they produce.

The committee also expects an increase in the use of biofuels and so-called e-fuels, which are synthesized from captured carbon dioxide, to compensate for the additional emissions produced by petrol and diesel vehicles.

Opponents of the move warned it could derail the transition to electric vehicles and expose the EU to the risk of foreign competition.

Green transport group T&E has warned that the UK should not follow the EU’s lead and weaken its plans to phase out the sale of conventional cars under the Zero Emission Vehicles Directive.

Anna Krajinska, director of UK T&E, said: “The UK must stand firm. Our ZEV directive has already brought jobs, investment and innovation to the UK. As a major exporting country, we cannot compete if we don’t innovate, and the global market is moving towards electrification at a rapid pace.”

Ahead of the announcement, ACEA director general Sigrid de Vries said “flexibility” for manufacturers was “urgent”.

“2030 is approaching and market demand is too low to avoid manufacturers risking billions of euros in penalties,” she said.

“It will take time to build charging stations and introduce financial and purchasing incentives to get the market on track. Policymakers must give manufacturers breathing room to sustain jobs, innovation and investment.”

British carmakers have previously called for better incentives Drivers are being encouraged to buy electric cars ahead of a government plan to ban the sale of new petrol and diesel cars by 2030.

Companies around the world have been changing their production lines and investing billions of dollars as governments try to convince people to drive greener cars to meet environmental goals.

Volvo said it had “built a complete electric vehicle portfolio in less than 10 years” and was preparing to use hybrids as a transition to fully electric vehicles. It believes that if it can move away from petrol and diesel cars, other companies should be able to do the same.

The carmaker said: “Diminishing long-term commitments for short-term gains could undermine Europe’s competitiveness in the coming years.

“A consistent and ambitious policy framework and investment in public infrastructure will deliver real benefits to customers, the climate and Europe’s industrial strength.”

However, German carmaker Volkswagen welcomed the European Commission’s draft proposal for a new CO2 target, saying it was “overall economically sound”.

“The fact that small electric vehicles will receive particular support in the future is very positive. Crucially, the 2030 CO2 target is more flexible for passenger cars and adapted for light commercial vehicles,” the report said.

“Opening the market to internal combustion engine vehicles while compensating for emissions is pragmatic and consistent with market conditions.”

Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU) think tank, said having “stable policy” in the UK would give businesses the confidence to invest in charging infrastructure and avoid “loss of investment”.

“It was government policy that led Sunderland to choose to produce Nissan’s original electric Leaf, and Today’s latest Nissan electric cars Production lines have already started rolling off the production lines in the Northeast, ensuring jobs for years to come,” he said.

Fiona Howarth, chief executive of Octopus Electric Vehicles, warned that if the UK lowered its targets because of the changes in Brussels it would “send a damaging signal to investors, manufacturers and supply chain partners”.

She said many of these groups had invested heavily in the transition “on the assumption that the UK would stay the course”.