The European Commission has softened its plans to ban the sale of new petrol and diesel cars by 2035.
Current rules state that new cars sold from that date must be “zero emissions”, but carmakers, especially in Germany, are lobbying hard for concessions.
Under the European Commission's new plan, 90% of new cars sold from 2035 will have to be zero-emission, rather than 100%.
According to the European Automobile Manufacturers' Association ACEA, market demand for electric vehicles is currently too low and without changes to the rules, manufacturers risk “multi-billion-dollar fines.”
The remaining 10% can be made up of conventional petrol or diesel cars, as well as hybrids.
Automakers are expected to use low-carbon steel produced in the EU in their vehicles.
The commission also expects an increase in the use of biofuels and so-called e-fuels, which are synthesized from captured carbon dioxide, to offset the additional emissions created by gasoline and diesel vehicles.
Opponents of the move warn it risks undermining the transition to electric vehicles and leaving the EU exposed to foreign competition.
Green transport group T&E has warned that the UK should not follow the EU's lead by relaxing its own plans to phase out the sale of conventional cars under a zero-emission vehicle mandate.
“The UK must stand firm. Our ZEV mandate is already generating jobs, investment and innovation in the UK. As major exporters, we cannot compete unless we innovate, and global markets are rapidly going electric,” said T&E UK director Anna Krazynska.
Ahead of the announcement, Sigrid de Vries, CEO of ACEA, said “flexibility” for manufacturers was “urgent.”
“2030 is just around the corner and market demand is too low to avoid the risk of multibillion-dollar fines for manufacturers,” she said.
“It will take time to build charging points and introduce fiscal and consumer incentives to get the market back on track. Policymakers must give manufacturers breathing space to support jobs, innovation and investment.”
Carmakers in the UK have previously called for better incentives encourage drivers to buy electric cars ahead of the government's planned ban on the sale of new petrol and diesel cars by 2030.
Firms around the world are changing their production lines and investing billions as governments try to persuade people to use greener cars to achieve environmental goals.
Volvo said it has “created a complete portfolio of electric vehicles in less than 10 years” and is ready to move to fully electric models, using hybrids as a transition. The company said that if it can move away from petrol and diesel vehicles, other companies will be able to do so too.
The carmaker said: “Easing long-term commitments for short-term gains risks undermining Europe's competitiveness for years to come.”
“Coherent and ambitious policies and investment in public infrastructure are what will deliver real benefits to consumers, the climate and Europe's industrial strength.”
However, German carmaker Volkswagen welcomed the European Commission's draft proposal for new CO₂ emissions targets, calling it “generally sound economically sound”.
It said: “The fact that small electric vehicles will receive dedicated support in the future is very positive. It is extremely important that CO₂ emission targets for 2030 become more flexible for passenger cars and adjusted for light commercial vehicles.
“Opening the market to emissions-compensated internal combustion engine vehicles is pragmatic and consistent with market conditions.”
Colin Walker, head of transport at think tank Energy and Climate Intelligence Unit (ECIU), said the UK's “stable policies” would give companies the confidence to invest in charging infrastructure and avoid “jeopardized investments”.
“It was government policy that led to Sunderland being chosen to produce Nissan's original electric Leaf, and Today is the last Nissan EV has started to roll off production lines in the North East, providing jobs for years to come,” he said.
Octopus Electric Vehicles chief executive Fiona Howarth warned that if the UK lowered its targets due to changes in Brussels it would send a “devastating signal to investors, manufacturers and supply chain partners”.
Many of these groups have already invested heavily in the transition period “provided the UK stays the course”, she said.
