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EU Approves Landmark Law to End Sales of New CO2-emitting Cars by 2035

EU Approves Landmark Law to End Sales of New CO2-emitting Cars by 2035

Introduction:

The European Union has given final approval to a landmark law to phase out the sale of new cars that emit carbon dioxide (CO2) by 2035. The new law will have far-reaching implications for the auto industry, and it aims to help the EU achieve its goal of becoming carbon-neutral by 2050. However, Germany has won an exemption for cars that run on e-fuels, which has raised concerns among environmentalists.

Background:

The EU’s new law aims to cut emissions from the transportation sector, which is responsible for around one-quarter of the EU’s CO2 emissions. The law sets a target of reducing CO2 emissions from new cars by 55% by 2030, compared to 2021 levels. This target will gradually increase over time, with a goal of phasing out the sale of new cars that emit CO2 by 2035.

The new law has faced some opposition, particularly from Germany, which has a large auto industry. Germany argued that cars that run on e-fuels, which are synthetic fuels produced using renewable energy, should be exempt from the ban. This exemption was granted in the final version of the law.

Implications:

The new law will have significant implications for the auto industry, which will need to shift towards producing electric and other low-emission vehicles. It will also impact the energy sector, as increased demand for electricity to power electric vehicles will require investments in renewable energy.

The law is also likely to lead to the development of new technologies, such as hydrogen fuel cells, as car manufacturers seek to find ways to reduce emissions without relying solely on electric batteries.

The exemption for e-fuel cars has raised concerns among environmentalists, who argue that e-fuels are not a viable alternative to electric vehicles. They argue that e-fuels are expensive to produce and consume a lot of energy, making them less efficient than electric vehicles. They also argue that e-fuels are not as environmentally friendly as they are often touted to be, as they still produce CO2 emissions when burned.

Challenges:

The new law will present several challenges for the EU and its member states. One of the biggest challenges will be ensuring that there is sufficient infrastructure to support electric vehicles. This will require significant investments in charging stations and upgrades to the electricity grid.

Another challenge will be to ensure that the shift towards electric vehicles does not create a digital divide, with low-income households and rural areas left behind. The EU will need to ensure that there is affordable access to electric vehicles for all.

Finally, the EU will need to ensure that the shift towards electric vehicles does not lead to job losses in the auto industry. The EU has proposed a €7.5 billion fund to help support the industry’s transition towards low-emission vehicles, but this may not be enough to prevent job losses in the short term.

Conclusion:

The EU’s new law to phase out the sale of new cars that emit CO2 by 2035 is a landmark decision that will have far-reaching implications for the auto industry and the energy sector. The law sets a challenging target for reducing emissions from new cars, and it presents several challenges for the EU and its member states. However, the exemption for e-fuel cars has raised concerns among environmentalists, who argue that e-fuels are not a viable alternative to electric vehicles.

Andrew Johnson is a seasoned journalist with a keen interest in the commodity market. He is a regular contributor to Livemarkets.com, where he covers the latest news, trends, and analysis related to the commodity industry. With years of experience under his belt, Andrew has established himself as a reliable source of information on the global commodity market.