Rome has announced its intention to propose advancing the review clause for the ban on the sale of new cars with combustion engines in the EU by one year.
Through this revision, Italy aims to delay the implementation of the ban, modify it by introducing certain exceptions, or tie it to increased investments that would make the transition feasible. Italian Minister for Enterprise and Made in Italy Adolfo Urso conveyed this during a press briefing at the European Parliament in Brussels.
Reasons for the request
The proposal was articulated by Mr. Urso at an informal meeting on the automotive sector organized by the Hungarian Presidency of the EU Council, and it will be discussed with his counterparts in Brussels.
“Together with other countries, we will draft a formal document to present to the Commission,” stated the Italian minister, who believes that the ban is contributing to a severe crisis for European car manufacturers, likely “putting hundreds of thousands of jobs across Europe at risk.”
“Considering the currently available data, both regarding car production on our continent, which has declined, and the purchasing of electric vehicles, which has decreased significantly, we are now convinced that with this timeline we will not achieve the objectives set for 2035.”
According to Mr. Urso, the revision must be prioritized to allow companies in the sector to plan their long-term investments with greater assurance: “We cannot leave businesses and consumers in the dark for another two years about the necessary actions.”
“However, this does not necessarily mean delaying the planned date for halting sales. There will likely be two options available,” said the minister. “We can either maintain our ambitious goal, creating conditions for acceleration—such as ensuring resources, technological neutrality, and strategic autonomy. If we fail to accomplish this, we will have no choice but to take a secondary approach, which would involve postponing the objectives.”
The Italian government seeks to obtain an exemption for vehicles powered by “biofuels,” which are derived from plant resources such as corn or palm oil.
Germany supports the Italian proposal
This request comes at a challenging time for the European car market, which is urging the EU for urgent measures: in August, the number of registered cars fell by 18% compared to the previous year, with a notable decline in Germany (-27.8%) and France (-24.3%). Italy also experienced a drop in sales compared to the same month in 2023 (-13.4%).
While overall numbers are decreasing, the market for electric cars (which could still be sold after 2035) is also struggling to gain momentum. For all of 2024, battery-powered cars accounted for only 12.4% of total registrations, according to data from ACEA, the European Automobile Manufacturers Association.
Germany appears prepared to back the Italian request: Economy Minister Robert Habeck** expressed his support after meeting with car manufacturers and union representatives, and he met with Mr. Urso in person in Brussels.
However, as the Italian minister stated, his stance is clear: “Mr. Habeck wants to uphold the 2035 target as a deadline, but he is ready to discuss all conditions necessary to meet that date with a competitive European industry.”
Other countries may also support the Italian request, such as Poland, Bulgaria, or Romania, which either abstained or voted against the ban when it was approved in March 2023. Mr. Urso mentioned that he has engaged in discussions with his counterparts, who have expressed “openness,” but he did not specify which states are in favor.
Nonetheless, only the European Commission has the authority to propose bringing the revision of the regulation forward, as explained by Tim McPhie, the Commission’s spokesperson for green transition issues.
“The Commission holds the right of legislative initiative and must propose any amendments to existing legislative texts. The decision will then be made by the Council of the EU and the Parliament.”
Italy Proposes to Advance Review of EU Ban on Combustion Engine Cars
Italy has recently announced its intention to propose an advancement of one year for the review of the EU ban on the sale of new cars powered by combustion engines. This proposal, which is being spearheaded by Italian Minister for Enterprise and Made in Italy, Adolfo Urso, aims to address the concerns of the automotive industry during a challenging time for car manufacturers in Europe.
Details of the Proposal
The proposal was unveiled during an informal meeting on the automotive sector organized by the Hungarian Presidency of the EU Council. The Italian government hopes to bring this matter to the forefront in discussions with European counterparts in Belgium. Urso explained that the aim is to either postpone the ban’s implementation or introduce exceptions that provide more flexibility for manufacturers and consumers.
Key Points of Discussion
- Impact on Employment: Mr. Urso highlighted the proposed ban as a potential catalyst for a crisis in the European automotive sector, threatening hundreds of thousands of jobs across Europe.
- Production Declines: Data indicates a significant drop in car production in Europe, alongside a decrease in electric vehicle purchases, raising doubts about meeting the 2035 targets.
- Long-Term Investment Certainty: The proposal aims to provide manufacturers with clearer guidelines to plan long-term investments while ensuring consumer confidence in the automotive market.
Reasons Behind Italy’s Request
During the press conference, Mr. Urso made it clear that the revision of the combustion engine ban should not simply delay the target but align it with realistic manufacturing capabilities and consumer uptake of electric vehicles. He stated:
“We cannot leave businesses and consumers in the dark for another two years about what to do.”
Furthermore, Italy is advocating for an exemption for vehicles powered by biofuels. These are produced from renewable resources, and such a provision could pave the way for a flexible transition to greener alternatives.
Support from Other EU Nations
The Italian proposal arrives amid significant declines in European car registrations, particularly alarming figures reported from Germany and France. For context:
| Country | Decline in Car Registrations (August 2024) |
|---|---|
| Germany | -27.8% |
| France | -24.3% |
| Italy | -13.4% |
Germany’s Economy Minister, Robert Habeck, has expressed support for Italy’s initiative. Following discussions with automotive leaders, Habeck emphasized the importance of maintaining the 2035 target while exploring the necessary conditions to enhance the competitive edge of the European automotive industry.
The Challenges Facing Electric Vehicles
While the proposal aims to address the combustion engine ban, the electric vehicle market also faces hurdles. According to data from the European Automobile Manufacturers Association (ACEA), electric vehicle registrations for 2024 account for just 12.4% of total car registrations in Europe. This figure highlights the slow uptake of electric vehicles, indicating a need for more robust support and incentives.
Broader Implications for the Automotive Sector
The call for an earlier review of the combustion engine ban is not just a matter of national interest; it reflects a larger narrative within the EU concerning the future of transportation, environmental standards, and economic stability. Other countries, including Poland, Bulgaria, and Romania, have expressed hesitation or opposition to the ban and may align with Italy on this issue.
Next Steps for the Proposal
Only the European Commission possesses the authority to propose changes to legislative texts. As stated by Tim McPhie, a spokesperson for the Commission on green transition issues:
“The Commission has the right of legislative initiative and must make a proposal to amend any legislative text. The decision would then be taken by the Council of the EU and the Parliament.”
Benefits of a Collaborative Approach
Engaging in a collaborative dialogue with other EU nations could facilitate a more effective transition to a sustainable automotive future. Benefits of this approach include:
- Technology Neutrality: Allowing various technologies, including hybrids and biofuels, to coexist during the transition phase can help ease the shift from fossil fuels.
- Job Protection: Creating conditions that protect jobs in the automotive sector while innovating for the future is crucial for economic stability.
- Investment Encouragement: Clear regulatory frameworks can foster increased investment in the automotive industry and related sectors, such as charging infrastructure for electric vehicles.
Conclusion
Italy’s proposal to advance the review of the EU combustion engine ban represents a critical intersection of environmental policy, economic viability, and technological innovation. By acknowledging the intricacies of the automotive sector’s current landscape, Italy and its supporters could redefine the roadmap for a sustainable automotive future in Europe.