EU backtracks on 2035 combustion engine ban 

The European Union is set to backtrack on its proposed 2035 ban on new petrol and diesel cars in what is being described as its most significant climb-down from its green policies in recent years.

Instead, the European Commission will propose replacing the blanket ban with a target of 90 per cent non-electric vehicles by that year.

This followed lobbying efforts by European carmakers to be allowed to continue selling plug-in hybrids and range extenders, particularly due to serious competition from Tesla and Chinese electric vehicles.

Carmakers will also be allowed to pool for these targets, which means that a brand which doesn’t meet the 90 per cent target can purchase credits from a brand that over-delivers.

These policies form part of the EU’s ambitious target to achieve an economy with net-zero greenhouse gas emissions by 2050.

In Malta, there have long been questions marks about the feasibility of these targets. A state-commissioned 2019 report by PwC found that these targets were unattainable in the absence of complementary policy actions, including an upgrade of the electricity grid to address peak load demands.

The Car Importers Association also warned that Malta setting a cut-off date for internal combustion engine (ICE) vehicles earlier than that of large countries could create a mismatch between local demand and global supply.

So far, the Maltese Government has expressed confidence in its ability to meet the EU’s targets.