EU Fast-Tracks 2035 CO2 Emission Targets Review Amid Auto Industry Concerns

The European Commission is set to bring forward its review of the 2035 CO2 emission targets, moving the timeline up from 2026 to the end of this year, according to EU sources. This strategic decision follows a discussion hosted by the bloc's executive chief with auto industry leaders concerning the sector's future prospects.

The EU's ambitious goal of achieving a 100% reduction in CO2 emissions for new cars and vans by 2035 has been challenged by automotive groups, who claim that such objectives are no longer achievable. This target is widely interpreted as the cessation of internal combustion engine sales for new vehicles, particularly focusing on the viability of electric vans, which currently hold a market share of just 8.5%, half that of electric cars.

While specifics of the new proposal regarding the 2035 targets are still under wraps, it is likely to explore the potential of CO2 neutral fuels such as biofuels to power internal combustion engines, as well as considerations for plug-in hybrids and range extenders. Furthermore, the Commission intends to introduce a proposal for a distinct regulatory category for small electric vehicles, which may benefit from reduced taxation and play a crucial role in meeting emission reduction goals.