The end of the gasoline car in the package of 12 risky green laws in Europe

Europe has launched the revolution that will place it as a world leader in the fight against climate change. It consists of a battery of measures that will transform the way of life of Europeans in many aspects of their daily lives. There are 12 legislative projects that mark the route to achieve the goal of reducing CO2 emissions by 55% by 2030, as an intermediate step towards climate neutrality, set for 2050.

It is a package as ambitious as it is controversial because of the profound changes it entails and that will provoke pressure and protests from companies and citizens, as well as irritating some trading partners such as China and Russia. It is high risk in many terrains. “The European Commission has to show that its plan leads to a fair and supportive transition. If we fail to convince of it, the resistance will be massive,” acknowledged Vice President Frans Timmermans.

The changes are profound. It means that no more cars with combustion engines will be sold after 2035, variations in energy taxation, increase renewables up to 40% of total energy, tax fuel used in road transport and heating buildings, and establish a tax on products imported from countries that do not apply strict rules against climate change.

According to the president of the European Commission, Ursula von der Leyen, it is a balanced package: “The plan combines the reduction of carbon emissions with measures to preserve nature and place employment and social equity at the center of this transformation.” A statement that will be tested first in the negotiations with the countries and the European Parliament, and then, once approved, by the sectors affected by its implementation.

From the outset, the change in cars. The limits of the pollution they cause will be progressively reduced, to achieve in 2030 a 55% reduction in emissions and subsequently, the definitive jump: five years later a 100% reduction. That is, from 2035 all new vehicles on sale will not be able to emit emissions, it is the end of cars with combustion engines. And also the end of hybrids. On the other hand, it does not affect motorcycles.

A ban that affects new vehicles, since the old ones can continue to be used, although the forecast is that they will be abandoned as the use of electric vehicles increases. For this, it is essential to improve the charging infrastructure. Currently, in the EU 70% of charging points are concentrated in three countries (Holland, France and Germany), something that will have to change. In this sense, the objective is that along the main routes there is a charging point for electric cars every 60 km, and for hydrogen refueling, every 150 km.

“If we do not convince that it is a solidarity transition, the resistance will be massive,” warns Timmermans.

On the other hand, there is a proposal that raises many fears because of the foreseeable social resistance that will be found among citizens with lower purchasing power. Road transport and building heating are included in a new car¬bono allowance (ETS) system, which will increase costs for citizens. It is a penalty through the polluting fuel of cars and heaters that will begin in 2026 gradually.

Much has been debated in Brussels about the presentation of this initiative because the specter of the yellow vest protest in France in 2018 is still present. On that occasion, it was a protest against the increase in the diesel tax, and here fuel prices will rise and will especially affect households with lower incomes.

To compensate for this cost, the Social Climate Fund will be launched, with an amount of 72,200 million euros over a period of seven years. A money that will be distributed among the member states according to several criteria such as vigorous poverty, and that will allow to subsidize 50% of the projects that the countries launch.

A fund of 72,000 million to avoid protests of ‘yellow vests’

In addition, a tax is also proposed on products that arrive in the EU from third countries that do not apply measures against climate change. It is the so-called Carbon Border Adjustment Mechanism (CBAM), aimed at preventing European companies from competing under inferior conditions. They are obliged to comply with environmental rules and, therefore, the EU will tax products that arrive from countries where the industry is not subject to these conditions.

The new tax will be applied from 2026 gradually, and will affect five sectors: steel, aluminum, cement, fertilizers and electricity. They have been chosen because there is a high risk of carbon leakage, i.e. companies moving to other countries where environmental standards are not as strict.

It is a measure that the EU will have to demonstrate is compatible with the rules of the World Trade Organization (WTO) and that can provoke strong reactions from the most affected countries, which are China, Russia, Turkey and the United Kingdom. “They are the ones most affected, and they are not precisely with whom we have better relations,” community sources acknowledge.

The plan foresees taxing the fuel of cars and heating, which will affect the less favored

Another key element will be an increase in reductions (from 43% to 61%) of carbon emissions allowed in the existing emission allowance market (ETS), and covering energy-intensive industries such as refineries and steel, in addition to commercial aviation. The kerosene tax on internal EU flights, the introduction of the maritime sector into the carbon rights market are other proposals that complete this ambitious and risky package.

Source: The Vanguard