The automotive industry is undergoing a lot of changes, and one of the most critical events that everyone is talking about is the categorical ban of combustion engines. The European Parliament has recently voted to approve a law that effectively bans the sale of new petrol, diesel and hybrid cars and light commercial vehicles from 2035. This time we’re discussing both the positive and negative aspects of this decision.
What’s the fuss all about?
The law indicates a potential shift in the EU’s (European Union) climate policy, while highlighting the balance between environmental goals and economic considerations. As per the new legislation, sales of new ICE (internal combustion engine) cars are to be totally banned from 2035, thus enforcing a 100% reduction in carbon dioxide emissions from all new vehicles to be sold from thereon.
A few German and Italian diplomats had raised objections and demanded an exemption for e-fuels. This type of fuels are made from CO2 captured from the atmosphere and hydrogen, and are said to be carbon-neutral. The promised integration of e-fuels has calmed the situation somewhat in regards to Germany. Vehicles in the country with combustion engines can also be newly registered after 2035 if they only use CO2-neutral fuels.
However, Italy is still seeking more guarantees for usage of biofuels, which come from biomass, such as wood waste. The integration of e-fuels definitely works in favor of manufacturers like Ferrari, Lamborghini and Porsche, well-known for their combustion engines. There are more pressing issues to be resolved, such as e-fuels being prohibitively expensive for many. They even require more energy needed to power BEVs on a per-mile basis and don’t completely erase local tailpipe emissions like BEVs do.
What is the UK’s position on banning combustion engines?
For the UK, this move might prove to be a good one as lawmakers have confirmed about continuing to sell ICE cars in the EU post-2035. Even though the new EU rules state that sales of new ICE cars and commercial vehicles from 2035 are prohibited, manufacturers that register fewer than 1000 cars annually will be exempt from the ban. It means some of the UK’s niche brands like BAC, Ginetta, Morgan, etc. can continue exporting the most popular models to the continent. Since the country has departed from the EU via Brexit, the rules won’t be applicable to the UK.
What are industry leaders saying?
Oliver Zipse, the CEO of BMW feels a categorical ban on petrol and diesel cars won’t bode well for the future. At the BMW half-year report conference, he spoke about the importance of low-CO2 fuels like e-fuels, E25 or HVO100, as these could dramatically improve the carbon footprint of the existing fleet of more than 250 million vehicles in the EU. He warns that if there is a lag in the ramp-up of low-CO2 fuels and their practical usage, it would be a deliberate ban on combustion engines through the back door.
E25 is a blend of 25% ethanol and 75% gasoline, while HVO100 is a fossil-free hydrotreated vegetable oil derived from renewable sources. Toyota, a partner in BMW’s hydrogen initiatives, is already marketing Land Cruiser and Hilux models in Western Europe that can run on HVO100, claiming up to a 90% reduction in CO2 emissions when the fuel is made from used cooking oil.
Even though BMW has clearly chosen a side when it comes to cars with combustion engines, it anticipates a rapid growth of electric vehicle sales. It is expected that at least half of its sales will consist of electric vehicles by the end of the decade. Mini and Rolls-Royce are set to go fully electric by then, leaving the core BMW brand as the only one with ICE vehicles in its lineup. It is only recently that BMW sold its one-millionth electric vehicle, making it just over ten years since the introduction of the i3. There are plans for at least six Neue Klasse-based models and several electric SUVs, including the iX5, iX6, and iX7, slated for release by 2028.
Ford UK Chair, Lisa Brankin, said the categorical ban is a huge transformation for the industry and the UK 2030 is vital for paving the way towards a cleaner future for Ford. As of now, she has requested the UK government to focus on ambition, commitment and consistency, which would be undermined if there is a relaxation of 2030.
Toyota has praised the move by stating that it provides much-needed clarity for the entire industry, by recognizing that all low emission and affordable technologies can have a role to play in a pragmatic vehicle transition. It will eventually be of enormous help to relevant parties when it comes to adapting, such as consumers, manufacturers, infrastructure and energy providers.
Volkswagen brand boss Thomas Schäfer is in favor of the ban, and isn’t really invested in the debate over e-fuels. Volkswagen is planning on phasing out ICE cars totally by 2033, it doesn’t come as a surprise. He doesn’t believe in funneling money on old technology that doesn’t offer any benefits.
Challenging the combustion engines ban
The biggest political group in the European Parliament, The European People’s Party (EPP), is all set to move against the categorical ban and planned phase-out of CO2-emitting cars by 2035. As per their proposal, they plan to extend the usage of alternative zero-emission fuels beyond the 2035 deadline, thus seeking to modify the ban on combustion engine vehicles that was passed into EU law last year. The EPP’s draft emphasizes a more nuanced approach, potentially allowing for the continued development and sale of combustion engine vehicles that run on certified CO2-neutral fuels.
It is clear that the categorical ban of combustion engines will have an enormous and far-reaching impact upon the automobile industry, along with the EU’s ambitious climate strategy. The upcoming years would be essential in determining the aspects discussed above. Follow along to stay up to date.
