Ed Miliband’s push for net zero initiatives has taken a blow after the EU decided to retract its bold pledge to ban the sale of new petrol cars.
It appears that Brussels is gearing up for a significant retreat on vehicle emissions legislation, influenced by dissent among member states such as Germany and Italy.
Manfred Weber, who leads the largest group in the European Parliament, announced that the planned ban on petrol, diesel, and hybrid vehicles initially scheduled for 2035 has been indefinitely postponed.
This sudden shift will undoubtedly be a setback for Miliband and the Labour Party’s goals related to net zero, especially since critics claim these policies could negatively impact industries and inflate household expenses.
In light of this, the automotive sector is pushing the UK government to reconsider its own goal of phasing out new petrol and diesel cars by 2030, along with hybrids by 2035.
Before these timelines kick in, car manufacturers are still held to electric vehicle sales targets outlined in the zero emission vehicle (ZEV) mandate.
On Thursday, government representatives reaffirmed their intentions to stick to these policies, with a formal review set for 2027.
Claire Coutinho, the Conservative shadow energy secretary, argued against bans, stating, “Instead of imposing electric cars on citizens through taxes, the government should promote consumer freedom.”
She added, “Lifting the net zero legislation would allow for a 20% reduction in electricity bills under our Cheap Power Plan and encourage people to purchase products they prefer when they desire.”
Richard Tice from Reform UK also echoed similar sentiments, proposing, “We must cease any internal combustion engine bans as part of scrapping net zero, which jeopardizes the UK automotive industry’s future.”
In light of the industry’s considerable lobbying efforts, Sir Keir Starmer along with Transport Secretary Heidi Alexander disclosed updates to the ZEV mandate in April which amended some regulations.
Miliband has strongly backed the push for electric vehicles, presenting them as a significant method to reduce carbon footprints for the UK and improve air quality in urban environments.
The original EU regulation aimed at achieving a complete elimination of carbon emissions from passenger vehicles by 2035, which would essentially ensure no new petrol or diesel cars were sold anymore, also affecting hybrid models.
However, Weber recently conveyed to the German newspaper Bild that the stringent requirements would be softened to seeking a 90% reduction, discounted the idea of enforcing a full ban.
This shift follows discussions between him and Ursula von der Leyen, the President of the European Commission.
Robert Forrester, CEO of the leading car dealership group Vertu, noted that this change showcases the EU’s practicality and flexibility compared to the UK. He commented, “The EU’s approach is sound, recognizing the gradual pace the shift towards electrification will take as opposed to five years ago.”
He emphasized that ensuring the future of the automotive market involves reconsidering the ZEV mandate critically.
The Chief Executive of the Society for Motor Manufacturers and Traders, Mike Hawes, supported this viewpoint, stressing that Europe being the largest market for UK exports means its regulations significantly affect the UK automotive sector.
He remarked that this turn of events in the EU would necessitate reevaluating the UK’s regulatory landscape as soon as the specifics come out.
The EU’s step back comes amid resistance from member nations like Germany, a leading car manufacturer in Europe. There are concerns regarding the influx of inexpensive Chinese EVs into the market, jeopardizing their domestic industry.
UK Could Face Consequences
Analysts believe that the EU’s moderation will positively influence UK-based car manufacturers such as Mini and Nissan by prolonging the profitability of their exports to Europe. Additionally, luxury brands like Aston Martin, Jaguar Land Rover, and McLaren will likely see benefits as well.
Conversely, AlixPartners automotive analyst Andrew Bergbaum cautioned that this decision would negatively affect plans for EV and battery production facilities in the UK, such as JLR’s proposed site in Somerset.
He expressed concern for investors in the EV sector, stating, “There’s no doubt that this will raise red flags for prospective investments in EV technologies.”
Proponents of electric vehicles urged government officials to resist emulating the EU’s recently announced changes, warning that conformity could hinder new investment in production plants and infrastructure.
Tanya Sinclair from Electric Vehicles UK warned that a pullback from these commitments could reverse progress around emissions reductions, clean air initiatives and thwart Europe’s climate progress.
She commented, “Giving in to this pressure would also lessen the ability to keep pace with the growing quality and supply of electric vehicles coming from competitive countries like China, Korea, and the USA.”
A representative from the UK government provided reassurances, stating, “We remain steadfast in phasing out all non-zero emission vehicles by 2035. Electric vehicle uptake is at an all-time high with sales recurring positively, leading to EVs now comprising one in four cars sold in November.”
The EU Commission has been approached for further comments.
