AB is reconsidering the postponement of the internal combustion engine ban.

Critical Vehicle Policy Change from the EU

The European Commission is working on innovative transition rules aimed at moving the automotive sector away from the use of fossil fuels. The details of these rules will become clear with announcements next week. In particular, governments of countries such as Italy and Poland express that the current technological shift is overly hasty and that this situation could threaten one of Europe's key industries.

New Strategy: Permission for 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 extended-range vehicles until 2040. Sources indicate that this new regulation will depend on the work being done on green steel, advanced biofuels, and e-fuels production.

Emission Targets and Sectoral Concerns

This plan will move in parallel with the EU's goal of achieving zero emissions in new passenger vehicles by 2035. However, the specific parameters of the proposal are of great importance. It is reported that details have not yet been finalized and negotiations are ongoing within the Commission. Furthermore, various automobile and parts manufacturers are calling for clean technologies, other than electric vehicles, to be used after this date.

Environmental Impacts and Concerns

Automobile manufacturers will gain more time to 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 regarding Europe's climate goals will further disadvantage leading automobile manufacturers in the region against China.