After a lengthy debate, the EU Environment Council has sent out a very mixed message on two important issues. The vote in favor of a second emissions trading scheme is an important step towards comprehensive European greenhouse gas pricing. The VDMA, Europe’s largest association for mechanical engineering, supports this measure. However, major uncertainties remain with regard to the question surrounding the combustion engine and future drive technologies for passenger cars and light commercial vehicles. This is because the EU was unable to reach a clear decision on the form in which synthetic fuels – known as eFuels – should be used in road transport in the future. This poses major imponderables for the medium-sized mechanical and plant engineering sector in particular.

It is good that there was no standstill in European climate policy in the EU Environment Council.

Hartmut Rauen, Deputy Executive Director VDMA

“We especially appreciate the commitment to use a broad range of  technologies in order to achieve the Paris climate goals. This also increases economic resilience for all economies.

Yet, the decision on the passenger car fleet CO2-limit leads to further debates between the member states and  EU Parliament and creates uncertainty: Even though an “internal combustion engine ban” has been averted for the time being and we are vigorously campaigning for alternative fuels to be eligible, the compromise on fleet regulation is sobering. The results of the EU Environment Council continue to mean great ambiguity with regard to future drive technologies for passenger cars and light commercial vehicles”, says Rauen.