The European Commission has proposed amending the "zero-emission" target for new vehicles by 2035

The European Commission released a package of measures for the automotive industry on Tuesday (December 16th), proposing to relax the requirements related to the "ban on the sale of fuel vehicles" by 2035.

Xinhua News Agency reported that the European Union previously decided to ban the sale of new fuel-powered cars and small vans that cause carbon emissions starting from 2035. The latest plan has adjusted the "zero emissions" target for new vehicles by 2035 to a 90% reduction compared to 2021. The remaining 10% reduction gap can be compensated for by using low-carbon steel manufactured in the EU or by using e-fuels and biofuels.

The European Commission pointed out that while the new plan continues to encourage electrification and hydrogen energy paths, it will also leave room for the sales of plug-in hybrid vehicles, extended-range electric vehicles, mild hybrid vehicles, and internal combustion engine vehicles after 2035.

The new plan also proposes to lower the emission reduction target for small passenger and cargo vehicles by 2030: from a 50% reduction compared to 2021 to a 40% reduction. In addition, if small economy electric vehicles are manufactured in the European Union, the car manufacturers can earn additional credits in the carbon dioxide target accounting.

The relevant proposals still need to be reviewed by the European Parliament and the Council of the European Union.

This policy adjustment by the European Union was made under the continuous pressure from Germany, Italy and the European automotive industry. Industry insiders in the electric vehicle sector have warned that easing emission reduction targets could weaken investment and further lag Europe behind in the transition to electrification.