The European Union is moving ahead with a plan to ban new diesel and petrol cars

An electric car shipped in Germany. The European Union is pressing ahead with its plans to increase the number of electric vehicles on its roads.

Tomekbudujedomek | moment | Getty Images

European Union plans to stop the sale of new diesel and petrol cars and vans took a big step forward this week after the European Council and the European Parliament reached an interim agreement on the issue.

In a statement released Thursday evening, the European Parliament said EU negotiators had approved a deal related to the European Commission’s proposal to “mobilize on zero-emissions roads by 2035”.

The plan seeks to reduce carbon dioxide emissions from new vans and passenger cars by 100% from 2021 levels and will constitute an effective ban on new diesel and gasoline vehicles of these types. The European Commission is the executive branch of the European Union.

Read more about electric cars from CNBC Pro

Parliament said smaller automakers producing up to 10,000 new cars or 22,000 new pickup trucks could be granted an exemption or exemption until the end of 2035.

“Those responsible for registering fewer than 1,000 new cars each year are still exempt,” she added.

Formal approval of the deal from the European Council and the European Parliament is required before it can take effect.

Industry feedback

The Brussels-based transport and environment group welcomed Thursday’s news. “The days of releasing carbon and the pollution combustion engine are finally numbering,” said Julia Poliskanova, Senior Director of Vehicles and Electronic Mobility at T&E.

Other commentators on the plans include the European Union of Automobile Manufacturers. In a statement, she said she was now urging “European policy makers to shift to a higher gear to spread the conditions for zero-emissions mobility.”

said its president, Oliver Zipps, who is the CEO of BMW. “This means that the European Union will now be the first and only all-electric region in the world.”

“Make no mistake, the European auto industry is up to the challenge of providing these zero-emissions cars and trucks,” he added.

“However, we are now keen to see the framework conditions necessary to achieve this goal reflected in EU policies.”

“These include an abundance of renewable energy, a private network infrastructure, seamless public shipping, and access to raw materials.”

During an interview with CNBC earlier this monthCarlos Tavares, CEO of Stilantsasked about EU plans to phase out the sale of new ICE cars and trucks by 2035. ICE cars are powered by a regular internal combustion engine.

“The decision to ban pure ICE cars is clearly a purely dogmatic one,” said Tavares, speaking to CNBC’s Charlotte Reed at the Paris Motor Show.

He added that political leaders in Europe should be “more pragmatic and less hard-line”.

“I think there is the potential – and the need – for a more realistic approach to transition management.”

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