The European Union is pushing ahead with plans to ban new diesel and petrol cars

Electric car charging in Germany. The European Union is moving forward with plans to increase the number of EVs on its roads.

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EU plans to phase out sales of new diesel and petrol cars and vans took a major step forward this week after the European Council and European Parliament reached a tentative agreement on the issue.

In a statement on Thursday evening, the European Parliament said EU negotiators had agreed on a deal on the European Commission’s proposal for a “zero-emissions road movement by 2035”.

The plan seeks to reduce CO2 emissions from new vans and passenger cars by 100% from 2021, and will effectively ban new diesel and petrol vehicles of this type. The European Commission is the executive arm of the European Union.

Read more about electric vehicles from CNBC Pro

Parliament said small automakers producing up to 10,000 new cars or 22,000 new vans could be downgraded or exempted until the end of 2035.

Also, “responsible for less than 1,000 new vehicle registrations per year continue to be exempted.”

The agreement requires formal approval by the European Council and the European Parliament before it can enter into force.

Industry reactions

Brussels-based campaign group Transport and Environment welcomed Thursday’s news. “The days of the carbon-emitting, polluting combustion engine are finally numbered,” said Julia Poliskanova, T&E’s senior director for vehicles and e-mobility.

Others commenting on the European Automobile Manufacturers Association plan. In a statement, it now urges “European policymakers to shift into high gear to sort out the enabling conditions for the zero-emissions movement”.

“This far-reaching decision is unprecedented,” said its chairman, Oliver Zipes. The BMW. “The EU will now be the first and only world region to go all-electric.”

“Make no mistake, the European automobile industry is challenged to deliver these zero-emission cars and vans,” he added.

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

“This includes abundant renewable energy, a seamless private and public charging infrastructure network and access to raw materials.”

During an interview with CNBC earlier this monthCarlos Tavares, CEO ConstellationHe was asked about the EU’s plans to phase out sales of new ICE cars and vans by 2035. ICE vehicles are powered by a conventional internal combustion engine.

“It’s clear that the decision to ban pure ICEs is a completely dogmatic decision,” Tavares told CNBC’s Charlotte Reid at the Paris Motor Show.

He said Europe’s political leaders needed to be “more pragmatic and less dogmatic”.

“I think there is potential — and need — for a pragmatic approach to managing change.”

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