Welcome to the latest Transport Brief!
Europe’s new suite of green rules for road transport is starting to take shape. Some new laws unambiguously push European carmakers to produce zero-emission vehicles. But other proposals are much less clear.
Take the new weights and dimensions rules. The Parliament’s proposed revision will allow fossil-fuelled trucks heavier than 40 tonnes to cross country borders until 2035.
Or the revision of the rules on tailpipe emissions. The parliament declined to meaningfully increase standards for passenger cars.
And who could forget the last-minute reprieve for the internal combustion engine?
On the other hand, the EU has sent its car manufacturers some pretty strong signals that the future of road transport is zero carbon.
Notwithstanding the debate over e-fuels, EU law now requires that cars and vans sold from 2035 must have zero emissions. Europe’s landmark carbon cap-and-trade system will cover road transport from 2027. And updated Euro 7 standards will cover emissions from brakes and tyres – the main emissions expected from electric vehicles.
The key question is: Do these mixed signals really help Europe’s carmakers?
The future of road transport seems almost certain to be electric. New international competitors in China and the US have wholeheartedly embraced this transition a long time ago.
European manufacturers, wedded to their highly developed combustion engines, were far more reluctant. As a result, there is now no guarantee that Europe’s current leadership in car production will transfer through to the electric age.
Ultimately, European carmakers will only thrive if they can produce the best vehicles.
The sector has already struggled with conflicting urges. Manufacturers’ need to defend past strengths has undermined their willingness to fully pivot to tomorrow’s challenges. It seems that these contradicting commercial interests are now being translated into EU policy – no doubt a result of industry lobbying.
But perhaps Europe’s carmakers would benefit from a clear, unambiguous signal – that from here on in, excellence in deep decarbonisation will be the ultimate driver of commercial success.
