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Italy Renews Push to Revise EU’s Combustion Engine Car Ban

Traffic in front of the Colosseum in Rome. Photographer: Gaia Squarci/Bloomberg (Gaia Squarci/Bloomberg)

(Bloomberg) -- Italy is doubling down on its push to revise the European Union’s plan to effectively end the sale of new combustion engine cars from 2035, as the region’s auto industry struggles to transition.

Rome is joined by the Czech Republic in urging the EU to recognize a “broader array” of solutions beyond battery electric vehicles and hydrogen-powered cars, according to a draft document seen by Bloomberg News. They are calling for a planned review by the European Commission to be brought forward to next year from 2026, as currently laid out by the law.

Europe’s car industry is struggling to meet its climate goals amid Chinese competition and a drop in consumer demand. Donald Trump’s victory in the US election has also raised fears of additional tariffs, particularly for German manufacturers, which send more vehicles to the US than to any other country.

“The industry is now at a critical juncture, facing significant challenges related to production, employment, and global competition, which require urgent and coordinated action at the EU level,” the draft document, which is still subject to change, said. “The competitiveness of Europe’s automotive industry must remain a central focus of EU policy.”

The commission has already committed to creating a carve-out for cars running on so-called e-fuels, which are made using captured CO2 and renewable electricity. They can in theory be 100% emissions free.

Carmakers say they are also on the hook for potentially billions of euros of fines for earlier emissions targets — in 2025. Italy and the Czech Republic want a possible short-term package to support the sector, although what that would contain is not fleshed out in the paper.

©2024 Bloomberg L.P.