EU ban on CO2 output could change

The "Fit for 55" proposal would see sales of only full-electric vehicles in the EU. Photo: BMW

The European Parliament will vote this week on whether to weaken a plan for a 100 percent cut in CO2 emissions from new cars. 

The move that would have the effect of banning sales of new internal-combustion cars in the EU and have a ripple effect globally, especially from the likes of VW Group.

The proposal to allow only zero-emissions new cars to be sold in the 27-country European Union after 2035 will mean that cars with petrol or diesel engines, including hybrids, will essentially mandate sales of all-electric models, which have no emissions.

The 100 percent cut was a centerpiece of the "Fit for 55" plan presented in July 2021 that aims to cut net greenhouse gases in the EU by 55 percent by 2030 on the path to carbon neutrality by 2050.

Amendments to be dicussed this week from the EPP, parliament's biggest lawmaker group, will attempt to weaken the proposed reduction to 90 percent, says Europe Automotive News.

The existing vehicle emissions rules mandate a 37.5 percent cut by 2030 from the 2021 fleet average of 95 grams of CO2 per km. Environmental groups want to strengthen that to include stricter intermediate targets, including a 45 percent cut by 2027, says Europe Automotive News.

In New Zealand, there is the Clean Car Rebate for vehicles that produce low to zero emissions, while there are fees for vehicles that have high emissions.