Scan to Download ios&Android APP

Five countries seek to delay EU fossil fuel car phase-out: document

By Reuters_News

14:41, 24 June 2022

Share this article

What You Need to Know

The week ahead update on major market events in your inbox every week. Subscribe
A woman holding a cable to charge a Renault Kangoo ZE electric utility vehicle at a Renault dealership in Cagnes-Sur-Mer, France, October 22, 2020.
A woman holding a cable to charge a Renault Kangoo ZE electric utility vehicle at a Renault dealership in Cagnes-Sur-Mer, France, October 22, 2020.

By Kate Abnett

- Italy, Portugal, Slovakia, Bulgaria and Romania want to delay a European Union plan to effectively ban the sale of new petrol and diesel cars from 2035 by five years, according to a document seen by Reuters.

The policy is a key pillar of the EU's plans to tackle rising transport emissions and speed the shift to electric vehicles, as the bloc strives to cut economy-wide net greenhouse gas emissions 55% by 2030, from 1990 levels.

The car emissions proposal, made by the European Commission last year, would require a 100% reduction in CO2 emissions from new cars by 2035, making it impossible to sell fossil fuel-powered vehicles in the EU from that date.

Ministers from EU countries plan to agree their position next week, before negotiating the final law with the EU parliament - which supported the 2035 ban in a vote this month.

In a paper circulated among EU states, the five countries called instead for a 90% car CO2 cut by 2035 and a 100% target by 2040. They said light commercial vehicles should meet an 80% CO2 cut by 2035 and 100% by 2040, rather than the 100% reduction by 2035 proposed by the Commission.

"Adequate and tailored transition periods need to be established," the paper said, citing the need to expand charging infrastructure.

A Bulgarian official, who did not wish to be named, said climate policies needed to consider economic and social factors such as the "the significant differences" in purchasing power between EU countries.

Brussels says the 2035 date is crucial because the average lifespan of new cars is 15 years – so a later ban would stop the EU reaching net zero emissions by 2050, the global milestone scientists say would avert disastrous climate change.

Some EU governments have rallied behind the 2035 target, but Germany's finance minister said this week the EU's biggest car market would not support it.

Ford F.N and Volvo Cars GEELY.UL have publicly supported the plan, and Volkswagen VOWG_p.DE aims to stop selling combustion engine cars in Europe by 2035. But industry groups including the European Automobile Manufacturers' Association have opposed the 2035 target, citing concerns including the uncertain rollout of chargers.

The EU is negotiating another law requiring countries to install millions of vehicle chargers this decade.

What You Need to Know

The week ahead update on major market events in your inbox every week. Subscribe
The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?


Join the 427.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account

2. Make your first deposit

3. You’re all set. Start trading