Europe's "zero emissions" target faces change, fuel vehicle ban may have a five-year grace period.

Notice: Under strong pressure from some of the European Union's largest car manufacturing countries, the EU is considering a five-year delay in implementing an effective ban on internal combustion engines. The European Commission is set to announce revisions to its rules aimed at pushing the automotive industry towards fossil fuel independence next week. Multiple governments and car manufacturers from Italy to Poland have expressed concerns that the current plans for transitioning from existing technologies are too drastic and could potentially harm one of the region's core industries. According to insiders, the Commission's strategy is to allow for a five-year extension on the use of internal combustion engines in plug-in hybrid and range-extended electric cars until 2040. The condition is that these vehicles will use advanced biofuels and so-called e-fuels (made using captured carbon dioxide and renewable electricity) and use green steel in their manufacturing process. Insiders indicate that based on the exact parameters of the proposal, this design would still allow the EU to aim for achieving zero emissions for new passenger cars by 2035. This would also address concerns from several countries involved in car and component manufacturing, who have called for the use of clean technologies other than pure electric cars after that date. Insiders cautiously state that discussions within the Commission are ongoing, and details are subject to change. While car manufacturers will have more time to transition to pure electric vehicles, environmental groups are concerned that these modifications could create new loopholes, undermine Europe's climate ambitions, and potentially further disadvantage the region's major car manufacturers in the race for battery-powered road transport against China. According to insiders who requested anonymity due to ongoing discussions, the proportion of plug-in hybrid and range-extended electric vehicles allowed to be sold in the European market after 2035 is still pending a decision. They indicate that key technical details regarding e-fuels and advanced biofuels are also still being finalized. Although e-fuels are theoretically climate-neutral, they are expensive and their technology is in early stages. The emission reduction benefits of biofuels and the pressure they put on land originally used for food production are also highly controversial. The comprehensive plan set to be announced next week will also delay plans to tighten emissions calculations for plug-in hybrid cars. The Commission had considered shifting towards a system that measures actual pollution instead of using current lab-based assumptions that significantly underestimate actual emissions. The package of car policies will include a proposal to increase the share of electric vehicles in corporate fleets and modifications to emissions rules for heavy vehicles.