Sweden Opposes Germany's Call to Cancel EU Ban on Internal Combustion Engine Cars

According to foreign media reports, Sweden has expressed opposition to Germany's attempt to push for a relaxation of the EU's 2035 regulation banning the sale of new fossil fuel vehicles, stating that any easing of the ban would be unfair to automakers that have invested heavily in the electrification transition.

Swedish Minister of Energy and Industry Ebba Busch refuted the claims made by German Chancellor Friedrich Merz, who recently suggested that the EU should allow transitional technologies such as range-extended electric vehicles and hybrid cars after 2035. This stance contradicts the EU's established goal of zero emissions for vehicles.

Image source: Volvo Cars

Busch recently stated in Brussels: "We cannot, on one hand, ask private enterprises to make large-scale investments worth billions of euros, and on the other hand, withdraw commitments and change targets after they have completed their preparations. We do not advocate abandoning the 2035 internal combustion engine car ban target."

Germany and Sweden's differing positions may trigger another round of intense debate on the future direction of the EU automotive industry. Germany had agreed to the EU's goal of banning the sale of internal combustion engine cars by 2035 earlier in 2023, provided that "synthetic fuels" (made from renewable energy and carbon dioxide captured from the atmosphere) could be exempted. However, Germany now seeks to broaden the exemption scope to include other technological routes.

Merz stated that he will push his proposal at the informal meeting of EU leaders in Copenhagen on October 1, and then continue to advance his proposal at the regular quarterly EU summit in Brussels in late October. Merz said: "My proposition is to let the automotive industry and the supply chain industry determine the technological path to achieve carbon neutrality—let them show us the technological path to achieving carbon neutrality by 2035, 2040, and 2045."

Volvo Cars, a Swedish car manufacturer, is reportedly one of the most ambitious companies in the industry regarding decarbonization. The company has repeatedly called on the European Commission to adhere to established emission reduction targets, thereby providing stable policy expectations for companies that have already invested heavily in new technologies.