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Following over five years of debate and a steadfast proposal introduced last year, the EU has agreed upon its first terms under a “Fit for 55” package to significantly reduce carbon emissions in Europe and achieve climate neutrality by 2050. The EU agreement increases required cuts to carbon emissions by 2030 and issues a complete ban on new combustion cars and vans from 2035 onward.

The EU has been working to establish a wide ban on combustion vehicles for years now and is finally making some legislative headway. Countries like Germany have embraced a ban on new combustion vehicle sales as far back as 2016 and have since been joined by other countries like France and the Netherlands, including many of their respective local automakers.

The ban exists under the EU’s larger “Fit for 55” strategy, which aims to reduce greenhouse emissions across its block of members by 55% by 2030, compared to 2021 numbers. This strategy has previously been criticized by conservative groups in the European Union as well as some automakers that believe such deadlines are simply not possible.

Others, like Bentley, Mercedes-Benz, Volkswagen Group, Ford, and Jaguar are all heavily onboard and have already begun pivoting their global production strategies toward becoming all-electric. Stellantis is even following suit, despite previous pessimistic comments from its CEO Carlos Tavares.

Volvo Cars has taken its carbon-cutting even further, announcing an exit from the European Automobile Manufacturer’s Association (ACEA) at the end of this year, stating that the long-running automotive lobby’s benchmarks are not ambitious enough. Stellantis is also cutting ties with the ACEA, but instead cited “challenges of future mobility and a shift away from traditional lobbying activity.”

Whether these EU countries or their local automakers believe a combustion ban by 2035 is possible or not, the legal steps to enforce it are underway, marking an epoch in the history of transportation that sets the stage for a future in which the EV is king.

EU combustion ban
Source: Council of the European Union

EU combustion ban

According to a press release from The Council of the European Union, it has reached a provisional agreement with European Parliament to implement stricter CO2 emission standards for new cars and vans. Under the terms of this first agreed upon “Fit for 55” proposal, all EU automakers must reach a zero-emission target for new vehicle sales by 2035.

The decision means that new combustion cars will be banned from registered use on EU roads after 2035. These proposals amend existing rules first laid out in 2019. The aforementioned 55% reduction in carbon emissions by 2030 is also a new increase from the previous goal of 37.5% compared to 2021 numbers. Anna Hubáčková, Czech minister of environment on the EU council, spoke:

Closing a first deal on a proposal from the ‘Fit for 55’ package is a strong signal that the EU is determined to make progress towards climate neutrality and the green transition. Zero-emission mobility will be a building block for slowing down climate change that can create severe disruptions in many sectors of our society, including environment, migration, food security and the economy.

According to the EU council, there will be some exceptions to the 2035 combustion ban. For example, Lamborghini, which is a relatively smaller combustion automaker with limited output, will receive an extra year to reach the outlined climate targets. Other alternatives like vehicles operating entirely on CO2-neutral fuels may still be able to seek new registrations after 2035. That specific proposal is still pending, however.

For now, new combustion vehicles will see a ban in the EU by 2035, and luckily, many automakers are already well on their way to bringing their CO2 emissions down to zero, but they’ll need to speed up for the benefit of the entire planet.

Across the pond, the state of California recently enacted a similar expiry for combustion vehicles. Considering 15 other states follow the same zero-emission regulations enacted in California and two more accept the state’s Low Emission Vehicle (LEV) regulations, you can expect those territories to also adopt the 2035 ban.

Section 177 of the Clean Air Act allows California to set its own emission standards stronger than the federal government while allowing other states to adopt those same standards. This means that as EV adoption continues to grow and more states back an end date for gasoline vehicles, we could soon see a federal ban on combustion, similar to the EU.

Automakers can whine all they want about the issues these bans may present on the global economy in the short term, but there is no point in talking about the economy if we don’t have a livable planet to economize. Even with these latest accelerations, we are still quite behind the eight ball on climate change, but news like this is of course encouraging.

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CNBC Daily Open: Major U.S. banks enjoy a blowout quarter — assuaging trade war concerns

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CNBC Daily Open: Major U.S. banks enjoy a blowout quarter — assuaging trade war concerns

U.S. Treasury Secretary Scott Bessent adjusts his glasses during a meeting with U.S. President Donald Trump and President of Argentina Javier Milei in the Cabinet Room at the White House on Oct. 14, 2025 in Washington, DC.

Kevin Dietsch | Getty Images

China has been using its dominance in the rare earth industry to slash prices, driving foreign competitors out, U.S. Treasury Secretary Scott Bessent told CNBC on Wednesday stateside in an exclusive interview. He characterized the country as having “a nonmarket economy.”

In response, the Trump administration will “exercise industrial policy” to set price floors in a range of industries. Price floors are a limit of how low suppliers can charge for goods or services. They are typically set above the market rate and are essentially a form of government price control.

Meanwhile, Bank of America and Morgan Stanley reported blockbuster second-quarter earnings that shot way past analyst expectations. They joined other major U.S. banks, such as JPMorgan Chase and Goldman Sachs, in ihaving a blowout quarter that was turbocharged by robust dealmaking and stock market highs.

And despite U.S. President Donald Trump’s continued saber-rattling at China on the trade front, traders don’t seem ready to let go of equities. On Wednesday stateside, the S&P 500 and Nasdaq Composite rose, and the Russell 2000 hit a fresh record. After all, earnings reports are indicating that the economy isn’t yet faltering, despite firms already experiencing higher costs because of tariffs, according to the U.S. Federal Reserve’s Beige Book.

Whether traders continue pushing equities to new highs amid fractious trade relations with China will depend, in part, on the earnings of major technology companies such as Tesla and Intel due next week.

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And finally…

A Chinese flag flutters on top of the Great Hall of the People ahead of the opening ceremony of the Belt and Road Forum (BRF), to mark 10th anniversary of the Belt and Road Initiative, in Beijing, China October 18, 2023.

Edgar Su | Reuters

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Trump says Modi assured him India will stop Russian oil purchases, but timeline unclear

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Trump says Modi assured him India will stop Russian oil purchases, but timeline unclear

The India-flagged oil tanker Desh Ujaala is pictured in the Gulf waters near Al-Basrah Oil Terminal (ABOT), about 50 kilometres offshore of Iraq’s southern Faw peninsula, on August 5, 2025.

Hussein Faleh | AFP | Getty Images

U.S. President Donald Trump said Wednesday that Indian Prime Minister Narendra Modi told him New Delhi will stop buying oil from Russia, though the move will take time.

“[Modi] assured me today that they will not be buying oil from Russia. That’s a big stop.” Trump said at the press briefing in the Oval Office. “Now we’ve got to get China to do the same thing.”

He added that Washington was unhappy with New Delhi’s purchases of Russian crude because it allowed Moscow to continue waging its “ridiculous war” in Ukraine.

However, the U.S. president also said that the halt will not be immediate, and there will be “a little bit of a process,” without giving a clear timeline.

India’s external affairs ministry said Friday that the country’s oil import decisions are driven by efforts to protect consumers by ensuring stable energy prices and securing supplies.

The ministry’s priority was to “safeguard the interests of the Indian consumer in a volatile energy scenario,” External Affairs Ministry spokesperson Randhir Jaiswal said in a statement.

He added that India’s import policies are guided “entirely” by that goal.

Jaiswal said that India has sought for years to expand energy trade with the U.S. “This has steadily progressed in the last decade,” he said, adding that “the current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing.”

India and Russian crude

India’s imports of Russian oil have been a sticking point in the relationship between Washington and New Delhi. Trump slapped additional tariffs of 25% on India back in August, raising the total levy to 50%, while India has called out the U.S. for its trade with Russia.

“If India doesn’t buy [Russian] oil, it makes [ending the war] much easier,” Trump said. “They assured me within a short period of time, they will not be buying oil from Russia, and they will go back to Russia after the war is over.”

On Thursday, Brent crude futures climbed 0.82% to $62.43 a barrel by 10:31 p.m. ET, while U.S. West Texas Intermediate futures climbed 0.89% to $58.79.

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India is one of the biggest buyers of Russian oil. Data from research firm Kpler shows Russia exports about 3.35 million barrels of crude per day, with India taking about 1.7 million and China 1.1 million.

New Delhi has defended those purchases, with Energy Minister Hardeep Singh Puri telling CNBC in July that New Delhi helped stabilize global energy prices and was encouraged by the U.S. to do so.

“If people or countries had stopped buying at that stage, the price of oil would have gone up to 130 dollars a barrel. That was a situation in which we were advised, including by our friends in the United States, to please buy Russian oil, but within the price cap,” Puri said.

Russian sales of crude oil have been placed under a price cap by the G7 nations and the European Union since Moscow’s 2022 invasion of Ukraine.

That price cap, set at $47.6 per barrel, aims to limit Moscow’s revenue from oil exports, constricting the country’s ability to finance its war in Ukraine.

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Kia plans to build 100,000 EV2 and EV4 models a year, far more than expected

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Kia plans to build 100,000 EV2 and EV4 models a year, far more than expected

Kia is about to go on the offensive. The automaker plans to nearly triple electric vehicle production in Europe within the next two years as it introduces the new EV2 and EV4.

Kia doubles down on EV2 and EV4 production plans

With the EV2 and EV4 joining the lineup, Kia will offer an electric vehicle for nearly everyone. The EV2 is Kia’s smallest, most affordable electric car, set to sit below the EV3.

Despite its compact size, Kia said the EV2 will “redefine urban electric mobility” with a flexible interior, its latest connectivity tech, and more.

According to Kia’s CEO, Ho Sung Song, the company plans to build about 100,000 EV2s at its Zilina plant in Slovakia.

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“The average annual production of the upcoming EV2 is expected to reach around 100,000 units at the Zilina plant in Slovakia in 2027,” Song told Automotive News Europe earlier this month.

Kia is also scaling up output of its first electric hatchback, the EV4. By 2027, Kia plans to build over 80,000 EV4s at the Zilina plant. If you add in the EV4 Fastback or sedan models built in Korea, “the EV4’s combined global production is expected to reach approximately 100,000 units,” Kia’s CEO said.

Kia-EV2-EV4
The Kia Concept EV2 at IAA Mobility 2025 in Munich (Source: Kia)

Song explained that Kia aims to produce 100,000 EV2 and EV4 models globally each year, as this volume will be high enough to make them profitable.

The new production target is considerably higher than what Kia Europe CEO Marc Hedrich told Automotive News Europe in August.

Kia-EV4-first-EV-Europe
Kia starts EV4 hatchback production in Europe, its first EV built in Europe (Source: Kia UK)

Hedrich said that combined EV2 and EV4 production could account for 10% and 20% of the output at the Zilina plant in 2026, adding that a production goal of 20,000 to 30,000 EV4s “would certainly make sense” next year.

Officials from Kia Europe explained that production plans shifted after the EV4 received better-than-expected feedback following its launch in August.

Kia-EV4-first-EV-Europe
Kia starts EV4 hatchback production in Europe, its first EV built in Europe (Source: Kia UK)

Kia began EV4 production on August 20, marking a milestone as its first EV built in Europe. Kia is investing €108 million ($125 million) in the Zilina plant to produce the EV2 and EV4. The EV2 will join in 2026.

The facility has the capacity to build 320,000 vehicles, but Kia said output could be expanded to 350,000 with overtime.

Kia-EV3
Kia EV3 Air in Frost Blue (Source: Kia UK)

Kia has yet to reveal final specs, but given the EV3 is about 4,300 mm (169.3″) in length, the EV2 is expected to be slightly smaller at around 4,000 mm (157″). That’s about the size of Hyundai’s entry-level EV, the Inster, at 3,825 mm (150″) in length.

Like the EV9 and recently launched EV5, Kia’s compact electric car features a more upright, crossover-SUV-like design.

Although Kia’s overall sales are down 3% in Europe through August, EV sales are up 56% to 71,179. The EV3 is driving growth as Kia’s second-best-selling vehicle behind the Sportage and as the seventh best-selling EV in Europe. Through the first eight months of 2025, Kia sold 45,269 EV3s in the region.

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