Over the past two decades, discussions about the impacts of carbon emissions on the atmosphere have generated internationally agreed targets to ensure this reduction. The automotive sector was no different. Specifically in the European Union, the goal of achieving carbon neutrality by 2050 has put many automotive companies under pressure to meet this target, which has raised concerns among many of them, who are now calling for flexibility in the terms of this agreement.
European automakers push EU for more flexible emissions rules
According to EU regulations, from 2035 onwards, only cars that emit zero carbon emissions will be allowed to be sold. This directly impacts the production of automakers in the member countries, as this means that gasoline-powered cars, diesel-powered cars, and even plug-in hybrids that still rely on a combustion engine will have to be phased out. The main goal is to reduce emissions by 50% by 2030, and then, five years later, achieve a 100% reduction.
However, in practice, this isn’t happening at the necessary pace. Only 15% of vehicles sold in Europe in 2024 were fully electric, and when it comes to vans, that percentage drops to less than 10%. Some logistical and financial factors, such as the heavy dependence on Asia for the supply of batteries specifically for electric cars and high production costs, further hinder companies from achieving the target.
A letter to the European commission
Directly impacted by the established regulations, executives from Mercedes-Benz and Schaeffler, on behalf of the ACEA and CLEPA associations, sent a letter to European Commission President Ursula von der Leyen, aiming to demonstrate that the rules are unworkable without adjustments. The main message from the representatives of these automotive giants is that the rules cannot depend solely on electric cars and that other solutions should be considered, such as hybrid vehicles.
Hybrids and other technologies are discussed
Among the proposals presented in the letter, the main one is to maintain plug-in hybrids as part of the emissions reduction plan. Currently, European legislation requires these vehicles to travel a minimum distance using only electric power, and companies believe this requirement should be revised or disregarded, mainly because of the argument that it will favor Chinese competitors offering cheaper models.
In addition to hybrid vehicles, other technologies are cited by automakers as complementary alternatives that should be permitted to achieve the targets. Among them are more efficient combustion engines, hydrogen-powered vehicles, and low-carbon fuels such as e-fuels. In other words, the overall proposal is to make the use of alternatives more flexible to achieve the target, not just linking it to the exclusive use of electric cars.
Moving away from technological issues, another aspect of the project’s viability is financial and logistical support, which, as already mentioned, is crucial to making alternatives more accessible and affordable. With increased purchasing incentives, reduced bureaucracy, and investments to optimize the supply process of essential raw materials for vehicle production, the risk of European industry losing market share to international competitors increases.
External pressures and reassessment of internal goals
This entire discussion becomes even more important considering the current global political and economic context, with increasing tariff impositions from the United States and increased global competition for vehicles from Asian companies in particular, which are worrying European automakers.
The European Commission has already granted flexibility in the targets set for 2025, but companies are still evaluating the need for greater flexibility in the coming years. The challenge now will be to align the needs presented by European automakers, which are offering solutions other than just electric cars, with the ambitious targets for reducing carbon emissions into the atmosphere. It is up to the Commission to assess the feasibility of the presented proposals without jeopardizing the deadlines agreed upon years ago.