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 moving the automotive sector away from the use of fossil fuels. The details of these rules will become clear with announcements scheduled for next week. Especially governments of countries like Italy and Poland express that the current technological shift is overly hasty and state that this could threaten one of Europe's major 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 be dependent on ongoing work on green steel, advanced biofuels, and e-fuels production.

Emission Targets and Sectoral Concerns

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

Environmental Impacts and Concerns

Automobile manufacturers will gain more time for the transition to fully electric vehicles with potential delays, but environmental groups have serious concerns about these changes. Environmental organizations are worried that the new opportunities created may further disadvantage leading car manufacturers in Europe against China.