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The European Union has dropped plans to ban the sale of new combustion engine vehicles by 2035, following sustained pressure from automakers and industry groups, officials said.

The proposed phaseout had been a cornerstone of the EU’s climate strategy, aimed at accelerating the transition to electric vehicles and cutting carbon emissions. However, car manufacturers and some member states warned the move could harm competitiveness, threaten jobs and strain supply chains, particularly as global demand for electric vehicles slows.

Industry leaders argued that the technology transition needed more flexibility, including continued use of combustion engines alongside alternative fuels and hybrid solutions. The revised position reflects growing debate within the bloc over how to balance climate goals with economic realities.

#EU #EuropeanUnion #Automakers #CarIndustry #ClimatePolicy #CombustionEngines #ElectricVehicles #EVs #GreenTransition #IndustryPressure #Europe

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Transcript
00:00Our automotive industry is absolutely vital to Europe's industrial strength.
00:17And two months ago in this chamber, we discussed the future of the automotive industry.
00:22And I had committed to backing the sector so that automotive companies will not only survive,
00:28but will thrive on European soil.
00:33And the Commission is convinced that the package of today is going to do exactly that.
00:38So let me set the scene and present our proposals to you.
00:43We're in the midst of a huge transition.
00:46China is aggressively competing in key technologies, including in EV and batteries,
00:51while the U.S. continues to outpace us in productivity and innovation in at least a number of sectors.
00:57And with such fierce competition, the European Union simply needs to step up.
01:04Our strategy is clear.
01:06Decarbonization is one of our best strategies for success.
01:11And we do want to be the leaders of the transition to a low-carbon economy,
01:15because that is what is best for climate, for competitiveness and for independence.
01:19First, we're staying the course towards zero-emissions mobility while introducing some flexibilities for manufacturers
01:31so that they can meet their CO2 targets in the most cost-effective way.
01:35The fleet-wide CO2 emission target for 2035 will require a 90% decrease in emissions,
01:44abiding by the principle of technological neutrality.
01:48And then the remaining 10% of emissions will have to be compensated by either clean steel,
01:55made in the EU, or by sustainable renewable fuels.
01:58And this compensation mechanism and this flexibility, in our view, is the cornerstone of the proposal,
02:07because it drives down emissions and it creates a win-win.
02:12Providing flexibilities, creating a lead market on steel, doing what is helpful for the sector,
02:18and at the same time making sure that our climate goals are rock solid.
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