EU Leaders Urge Commission to Review Ban on Petrol Cars

The European Union is considering a significant adjustment to its climate policies, particularly concerning the planned phase-out of new petrol and diesel vehicles. EU heads of state and government have called on the European Commission to present an alternative proposal to the current regulations, which require all new vehicles registered from 2035 onwards to be locally emission-free.

This development comes as several political and industry voices, especially from Germany, express concerns about the impact of the proposed ban on the competitiveness of Europe's automotive sector. The automotive industry, seen as a cornerstone of the European economy, faces increasing pressure to remain resilient in the face of global market challenges and shifting geopolitical landscapes. Industry representatives argue that maintaining flexibility in technology choices is critical for sustaining growth and jobs while moving toward environmental goals.

At a recent summit, EU leaders emphasized the need to balance climate ambitions with economic competitiveness. The summit's conclusions highlighted that climate regulations should be implemented in a practical and flexible manner, allowing for periodic reviews and adjustments based on technological advancements and market realities. In particular, leaders advocated for the inclusion of carbon capture technologies and the use of high-quality international emission certificates as part of the EU's overall emission reduction strategy for 2040.

The current climate law stipulates that, in addition to established emission reduction targets for 2030 and 2050, a new target for 2040 must be set. The Commission has proposed a 90% reduction in greenhouse gas emissions by 2040, compared to 1990 levels, with a portion of this reduction achievable through internationally recognized climate certificates. However, this proposal still requires approval from a majority of EU member states and the European Parliament, with several countries expressing reservations about the scale and pace of the proposed changes.

Furthermore, the summit addressed the broader regulatory landscape affecting European industry. Leaders called for a comprehensive reduction of bureaucracy and a simplification of EU legislation, especially in sectors such as agriculture, digitalization, defense, and chemicals. These measures are intended to strengthen the EU's position in global markets and respond more effectively to emerging economic and security challenges.

In addition to climate policy concerns, the summit signaled intentions to revise the EU supply chain law by the end of the year. The goal is to ease administrative burdens on companies and streamline compliance requirements, further reinforcing the theme of competitiveness throughout the summit discussions.

Germany, in particular, has been vocal about the need for expedited action to reduce administrative and regulatory burdens, emphasizing that swift progress is necessary to maintain Europe's economic vitality. The call for rapid decisions and the reduction of bureaucratic obstacles reflects a broader consensus among EU leaders that regulatory efficiency is as important as climate ambition in securing a prosperous future for the region.

Overall, the EU's approach signals a potential shift towards more flexible and economically responsive climate policies, with the fate of the internal combustion engine in new vehicles likely to be a topic of ongoing debate as the Commission prepares its revised proposal.