Europe prepares new car plan - what we know

Brussels will present an 'action plan' on 5 March: probable revision of fines for manufacturers and stop to 2035, with room for e-fuels

Dialogo Ue-auto

Photo by: European Commission

By: Riccardo Ciriaco

Published by: Brian Potter

Jan 31, 2025 at 4:11am ET

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The date is set for 5 March. On this day, Europe will reveal its plans for new cars, updating the controversial rules on reducing emissions from new vehicles (under threat of fines for manufacturers totalling up to €15 billion) and, most significantly, ending the sale of petrol and diesel cars in 2035.

The anticipation comes from German President Ursula von der Leyen herself, who opens the proceedings of the much-anticipated 'Dialogue on the Future of the European Automotive Industry' in Brussels: a meeting bringing together politicians, companies and trade unions to rewrite the rules of tomorrow's mobility.

The result will be an 'action plan' to be presented by Commissioner Apostolos Tzitzikostas, responsible for transport on the continent. In the meantime, discussions will continue, focusing on "clean transition and regulatory simplification, as well as identifying areas where more concrete action is needed". Some examples are "industrial value chain, technology, digital and skills".

Compromise in sight

But nothing is coming out of Brussels. So we do not know how the issues of fines and phase-outs will be resolved. However, according to rumours and statements in the hours leading up to the meeting, the Commission would be open to a compromise on the targets for this and the next few years, i.e. reducing the average emissions of new cars, forcing manufacturers to increase sales of electric vehicles by sacrificing combustion engines.

Von der Leyen herself states that the issue will be resolved within "weeks, not months". However, it remains a 'problem of fairness, because some manufacturers have successfully invested to meet the targets'. What is needed instead is 'fairness and pragmatism, in the knowledge that issues should not be examined in their individual dimension, but put into a framework'.

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Yes to e-fuels

Looking ahead to 2035, she remains committed to the goal of "climate neutrality for cars", but is open to "a technology-neutral approach in which e-fuels play a role through a targeted amendment of the regulation as part of the planned revision".

As well as electric cars, there is also space for synthetic petrol, while there is no mention of biofuels, so dear to the Italian government. Minister Adolfo Urso himself held a series of meetings with various EU commissioners and reiterated "the need to press ahead with the revision of the regulation on CO₂ emissions from light vehicles, as indicated in our non-paper on the automotive sector".

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