AB is considering postponing the internal combustion engine ban.

Critical Vehicle Policy Change from the EU

The European Commission is working on innovative transition rules aimed at reducing the use of fossil fuels in the automotive sector. The details of these rules will become clear with announcements to be made next week. In particular, governments of countries like Italy and Poland express that the current technology shift is excessively hasty and state that it could threaten one of Europe's key industries.

New Strategy: Allowing Internal Combustion Engines Until 2040

The new strategy proposed by the Commission aims to extend the use of internal combustion engines in plug-in hybrids and range-extended vehicles until 2040. Sources indicate that this new regulation will depend on ongoing work in green steel, advanced biofuels, and e-fuel production.

Emission Targets and Sectoral Concerns

This plan will proceed in parallel with the EU's goal of achieving zero emissions in new passenger vehicles by 2035. However, the precise parameters of the proposal are of great importance. Reports indicate that the details have not yet been finalized and negotiations are ongoing in the Commission. Additionally, various automobile and parts manufacturers are calling for the use of clean technologies other than electric vehicles after this date.

Environmental Impact and Concerns

Automobile manufacturers will gain more time for the transition to fully electric vehicles with a potential delay, but environmental groups have serious concerns about these changes. Environmental organizations are worried that the new opportunities created for Europe's climate goals could further disadvantage leading automobile manufacturers in the region against China.