The European Union (EU) may not completely phase out plug-in hybrid electric vehicles (PHEVs) after 2035. Der Spiegel cited sources close to negotiations in a report. A newly published EU strategic document indirectly supports this possibility.
In the report, the EU Commission stressed the need for a technology-neutral approach to achieve climate neutrality goals for automobiles by 2035. They also indicated plans to review the role of e-fuels (synthetic fuels) as part of the upcoming regulatory assessment.
Following a meeting with automotive industry leaders, EU Commission President Ursula von der Leyen announced plans to unveil an action strategy for the auto sector’s future on March 5. This signaled a swift response to industry concerns.
This development aligns with Mercedes-Benz’s active lobbying efforts to continue using PHEV and extended-range electric vehicle (EREV) technologies. While Mercedes affirmed its commitment to decarbonization goals, the company emphasized the need for ongoing approval of climate-friendly technologies like plug-in hybrids and range extenders.
These developments suggest potential modifications to the EU’s plan to ban internal combustion engine vehicle sales from 2035. The cornerstone of the “Green Deal,” championed by von der Leyen, aimed to permit only zero-emission new vehicle registrations starting this year. The initiative targets carbon neutrality in transportation by 2050. The auto industry has been shaping long-term strategies based on this initiative.
The policy has faced considerable pushback from industry players and some political factions. The stricter CO2 emission regulations set for 2025 put significant pressure on automakers, with concerns that non-compliance penalties could hamper future investments. Critics argue this could lead to plant closures, job losses, and economic instability.
The EU is exploring alternatives such as delaying CO2 fines, easing future reduction targets, and potentially allowing new PHEV registrations beyond 2035. Der Spiegel noted that achieving tighter CO2 limits requires an adequate supply of affordable electric vehicles, adding that these discussions might discourage potential EV buyers.
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