EU Plans Hybrid Transition in Clean Car Regulation Overhaul

The European Commission has revised its clean car regulations following heavy lobbying, allowing sales of internal combustion engine cars beyond 2035 with reduced emission targets. The new plan includes CO2-reduction flexibilities for automakers, binding electrification targets for corporate fleets, and financial support for EU-made clean vehicles.

The European Commission on Tuesday unveiled a revised set of proposals that modify its initial plan to ban the sale of new internal combustion engine cars by 2035. This move comes after intense lobbying from Germany, Italy, and major automakers, advocating for transitional technologies like plug-in hybrids and CO2-neutral fuels.

The amended package changes the 2035 goal to a 90% cut in tailpipe emissions based on 2021 levels. It introduces measures to hasten the shift to electric vehicles while allowing automakers greater flexibility. Automakers can still sell plug-in hybrids beyond 2035 and utilize CO2-neutral fuels, including advanced biofuels from waste, to meet emission targets.

Corporate fleets, accounting for 60% of new car sales in Europe, will adhere to binding electrification goals linked to GDP, with exemptions for smaller enterprises. The package promotes EU-made clean vehicles and aims to grow a second-hand EV market. A new category for small electric vehicles is introduced, qualifying for "super-credits" in emissions targets. Meanwhile, a battery booster pack will see a significant financial injection to bolster EU's battery industry.

(With inputs from agencies.)