Core Points - The European Union is proposing to soften emissions rules for new cars, effectively scrapping a ban on combustion engines due to pressure from the automotive industry [1][3] - The proposal allows carmakers to slow the rollout of electric vehicles (EVs) in Europe, aligning the region more closely with the US, where efficiency standards are being relaxed [2][3] - The new regulations will require a 90% reduction in tailpipe emissions by the middle of the next decade, compared to the previous goal of 100% reduction [5] Industry Impact - The proposal is expected to be adopted by EU commissioners and will undergo discussions in the European Parliament and EU Council, with potential amendments from each institution [6] - Environmental groups express concern that the changes may create loopholes that undermine Europe's climate ambitions and hinder European manufacturers in competing with Chinese brands in the EV market [8][9] - The automotive industry, particularly German manufacturers, has lobbied for these changes to protect jobs and ease political tensions amid increasing competition and trade tariffs [10][11] Market Dynamics - Sales of new battery-electric cars have slowed, particularly in Germany, due to the withdrawal of purchase incentives, although growth is recovering with some subsidies returning [12] - The uptake of EVs varies significantly across Europe, with pure EV registrations accounting for 35% of sales in the Netherlands compared to only 8% in Spain [13] - The proposal package includes measures to boost the uptake of small electric vehicles made in Europe, including a 10-year exemption from certain safety and emissions requirements [14]

Group 1 - The European Commission plans to drop the effective ban on new combustion-engine cars from 2035, marking a significant retreat from its green policies due to pressure from the auto sector [1][2] - The proposal allows continued sales of non-electric vehicles, including plug-in hybrids and range extenders, as carmakers in Germany and Italy seek to ease regulations [2][3] - Volkswagen supports the proposal, stating it is economically sound and aligns with market conditions, while also advocating for support of small electric vehicles and more flexible targets for 2030 [3] Group 2 - The new EU targets would require a 90% cut in CO2 emissions from 2021 levels, a shift from the previous requirement for zero emissions from all new cars and vans by 2035 [5] - Automakers will need to offset remaining emissions using lower-carbon materials and synthetic or non-food biofuels, with a three-year window from 2030 to 2032 to achieve a 55% reduction in car CO2 emissions [6] - The EU's decision follows Ford's announcement of a $19.5 billion writedown due to the cancellation of several EV models, indicating a complex landscape for EVs in Europe [7][8]

The UK will not create its own framework for sustainable investments, abandoning years of work to focus on other green policies https://t.co/oZZOl2Dkv6 ...

Environmental Impact - Deforestation in the Amazon decreased by 50% during Marina Silva's five-year term as environment minister [1] Policy & Politics - Marina Silva's green policies are currently facing scrutiny [1]