It enters into force in 2035.
February 14, 2023 at 10:26 a.m. ET
The European Union has today taken another step to ban the sale of new petrol and diesel cars. Parliament approved the new CO2 emission reduction targets last year, with the latest vote finally pushing the legislation into law. It states that carmakers must reduce CO2 emissions from new cars to zero by 2035.
Automakers will have another goal to meet before the deadline. The law requires carmakers to cut CO2 emissions by 55 per cent for new cars and 50 per cent for vans by 2030. The coming years will also see the EU alter its incentives to low and zero emission vehicles, eliminating them completely by 2030.
Automakers that produce between 1,000 and 10,000 new cars a year could have until 2036 to meet emissions targets. Manufacturers registering fewer than 1,000 new vehicles a year could continue to be exempt from the new rules.
The new law effectively bans the sale of new petrol and diesel cars in the 27-member bloc. However, it does not specifically mention the ban on internal combustion engines, as the law dictates emissions targets and not how they are achieved. This leaves the door open to synthetic fuels and hydrogen energy.
Porsche began synthetic fuel production late last year, which is just one avenue for automakers looking outside of battery electric vehicles. Even Lamborghini expressed interest in exploring alternative fuels, with Toyota experimenting with hydrogen-powered combustion engines. The future is not yet set in BEVs.
Although 2035 is 12 years away, the new law will have global ramifications as automakers work to comply. Many companies have already announced plans to transition their lineups exclusively to battery electric vehicles. Ford announced in 2021 that it plans to sell only electric cars in Europe by 2030, backing a ban on the block in 2035. Mini, Volkswagen, Jaguar, Bentley and others are following a similar path to electrify their lineups.
In the United States, states prohibit the sale of gasoline and diesel cars in lieu of federal regulations. California passed a ruling in August 2022, followed by Oregon in December, effectively banning the sale of new combustion-powered cars. New York is another state implementing this ban.
