EU Auto Group pushes hybrids and e-fuels as part of CO2 emissions goal review

The European Union's auto association suggested that the EU should relax its CO2 targets for cars and vans. It also recommended a longer period of compliance and a larger role for hybrids and alternative fuels.

The European Automobile Manufacturers' Association presented proposals to European Commission which will review its targets at the end of this year. This is to take into consideration the pressure on the sector due to U.S. Tariffs and Chinese dominance in electric vehicles.

ACEA's premise was that it is not possible to reduce CO2 emissions from new cars and vans by 100% by 2030, but with an intermediate target of 2035. Automakers are also facing fines due to factors outside their control such as low demand or insufficient charging stations.

Around 15.8% of all new cars in the EU are EVs, while vans and trucks account for 8.5% each.

ACEA suggests that for cars, compliance with 2030 targets be based on an average of the five-year period from 2028-2032. Small EVs are to be given a special credit in meeting targets, and plug-in hybrids, range-extenders, and other technologies should play a larger role.

The group also wants to put vehicles that use carbon-neutral gasoline on the same level as EVs, and provide incentives for initiatives to decarbonise such as green steel.

It recommends that vans meet the 2025 CO2 emissions targets during the period of 2025-2029, and modify the 50% reduction goal for 2030. ACEA is calling for a review of trucks earlier than planned in 2027, and urgent actions to avoid fines for manufacturers who miss current targets.

T&E, a campaign group for transport and the environment, said ACEA’s proposals created loopholes. This meant that carmakers only had to reach a 52% EV share by 2035.

ACEA stated that this was a premature estimate and the majority of cars sold will be electric. It said that allowing flexibility would not impede the transformation but instead ensure the economic security of the bloc. Reporting by Philip Blenkinsop, Editing by Alexandra Hudson

(source: Reuters)