2035 internal combustion engine ban to come undone?

Pressure on the Commission to reverse the 2035 ban on the sale of internal combustion engine (ICE) and relax the 2025 emission targets for cars and vans mounts amid calls from the major political group in the Parliament, European People’s Party, and the automotive industry.

Slumping EV sales and potentially hefty fines that car manufacturers would incur unless they increase the share of zero and low-emission vehicles (EVs, fuel cell and other hydrogen-powered vehicles) created the momentum for a reverse of the legislation.

For the renewable fuels market, the softening of the legislation could see additional demand from hydrogen-powered vehicles, whereas the expected life-cycle methodology for cars and vans could spur demand for RES-E GOs in Europe, and EACs in the rest of the world as supply chains are set to be affected.