Though the European Union’s decision to ban new petrol and diesel cars from circulation after 2035 was applauded as a clever strategic move against climate change, hurdles remain. The main challenge stems from the increasing pushback from political elites and car makers. With deadlines looming and industries under strain, questions arise: Is Europe up to the tasks, or is this transformational change already at risk of being set back?
EU’s 2035 internal combustion engine ban: revolutionary but controversial policy
Nonetheless, the critics have pointed out that this policy has an unreasonably short time frame, and will be detrimental to the economy. Its implementation has been criticized by the automotive industry and the political sectors as impractical and economically unbearable.
Appeals to correction have arisen from important players such as the European People’s Party (EPP), which is the largest political grouping in the European Parliament. They have called for special passes for ICE cars which use sustainable fuels and plug-in hybrids. This is due to the pressure between sustainable development objectives and Economic practicability in delivering the promising policy. (Internal combustion engines have declined due to this issue).
Automakers’ financial struggles: penalties, competition, and shrinking sales
The automotive industry is under a lot of pressure to fulfil EU emission standards. The target of decreasing fleet emissions by nineteen per cent by 2025 is costly to manufacturers. Going beyond the line can lead to serious consequences; fines may reach €15bn next year. According to Renault CEO Luca de Meo, car manufacturers fear electric cars will become a financial burden.
Exacerbating the situation, new domestic electric car makers such as Volkswagen threaten traditional European auto industry leaders. Late last month, a German car manufacturer indicated its intention to shut down three of its production facilities to curb its operating expenses and raise questions about the future of Europe’s auto industry and its prospects towards electric cars.
It is worth noting that the repercussions of the 2035 ICE ban do not end in Europe but affect automotive markets worldwide. If car manufacturers cannot sell new petrol and diesel vehicles in Europe, the economies of scale could decrease, increasing global manufacturing costs. This could result in the pull out of the market for so many models of cars that would badly hit both manufacturers and consumers worldwide.
The switch to electric cars also puts thousands of auto workers in Europe at risk, due to the reduced employment intensity of the EV industry. A downside of this industry is that factory halts or reductions in layoffs may cripple the economies of countries depending on this business. For this reason, the 2035 ICE ban is a crucial concern for several manufacturers, employees, and societies.
Balancing sustainability with practicality: will the 2035 ICE ban succeed?
The never-ending pressure to postpone the 2035 ICE ban demonstrates that setting lofty decarbonization targets is inherently challenging when it comes to wielding the economic sword. On the one hand, the supporters have been claiming that automakers have long enough to prepare for the transition, while on the other hand, the opponents are known to have been warning that the transition will leave many people unemployed and financially unstable.
Other managing options like pushing sustainable fuels and extending plug-in hybrids are becoming more popular now. The EU also needs local automakers as they struggle to compete with low-cost Chinese EVs subsidized by the Chinese government.
Banning new ICE cars and light commercial vehicles after 2035 is a good step toward sustainability, although it carries many challenges. It is now poised dangerously on the brink in a Europe defined politically, economically and industrially. No matter how it goes – whether the ban is planned or slowed down – its outcome will determine what the car manufacturers worldwide look like and what the fight against global warming will look like. Also, read about this new upcoming engine.
