New EU category of small electric cars comes with 'super credits'

The European Union may be easing fleet emissions targets to allow combustion engines beyond 2035, but it still firmly believes that “the future is electric.”

While new regulations usually add headaches for automakers, there is one single point in the EU's "Automotive Package" that they should universally welcome.


It calls for the creation of a distinct subcategory of small electric vehicles, called "M1E", the Telegraph reports.

How small? To qualify for the M1E class, a car must be no longer than 4.2 meters. That's still significantly larger than Japan's kei cars, which are limited to 3.4 meters.

However, length is not the only requirement. These vehicles must be fully electric and assembled in one of the 27 EU member states.

Automakers will be encouraged to develop small electric vehicles through so-called "super credits".

An M1E certified vehicle will be counted as 1.3 instead of the usual 1, effectively giving a 30 percent advantage towards CO2 compliance targets.

The EU also wants to freeze requirements for this new class for 10 years, giving manufacturers the stability needed for long-term planning:

"Before 2035, car manufacturers will be able to benefit from 'super credits', as included in CO2 standards, for affordable small electric cars produced in the European Union. This provides a strong incentive for car manufacturers to produce and commercialize higher volumes of small electric vehicles, with an expected positive indirect effect also on the affordability of these vehicles," the EU said.

The EU believes that the creation of the “M1E” category will simplify the legal framework for member states seeking to promote small electric vehicles through subsidies, tax breaks and discounted tariffs.

Owners can also benefit from road tax exemptions and preferential access to lanes or parking.

While not everyone agrees with the EU's decision to back away from a tough 2035 ban on new combustion engine cars, the "M1E" category should be welcomed across the industry.

If electric vehicles are truly the future, the transition should be driven by small, affordable models rather than heavy, large vehicles.

The requirement that these cars be manufactured in the EU also protects jobs in the country and helps protect against competition from China.

Several current and upcoming models already meet the requirements. These include Renault's Twingo, 4 and 5, as well as the Volkswagen Group's ID, Polo, Skoda Epiq and Cupra Raval.

Stellantis is represented by the Citroën e-C3, Opel Corsa Electric, Fiat 500e and Peugeot E-208. The Slovakia-made Kia EV2 also qualifies, but the Hyundai Inster does not, as it is manufactured in South Korea.

Likewise, the Mini Cooper and Aceman are assembled in China, which disqualifies them from the "M1E" class.

The creation of the “M1E” category also indirectly helps vehicle manufacturers continue to sell combustion engine vehicles.

By earning super credits, companies can more easily offset the CO2 emissions generated by their ICE models.

In theory, this could allow combustion engine cars to stay on sale longer, especially now that the de facto 2035 ban is being lifted.

Vehicle manufacturers operating in the EU still have to reduce CO2 emissions by 90 percent by 2035 compared to the 2021 baseline.

The remaining 10 percent will have to be compensated by combustion engine vehicles powered by e-fuels and biofuels, as well as by cars built using low-carbon steel produced within the Union.

The “M1E” class will also help manufacturers meet intermediate emissions targets before the middle of the next decade.

The EU is further easing compliance by allowing automakers to “collect and borrow” emissions credits over a three-year period, rather than mandating compliance with strict annual targets.

This mechanism is already in force for the years 2025-2027 and will be extended until 2029. It will also apply for the period 2030-2032, when even stricter targets come into force. /Telegraph/

Source of information @Telegrafi: Read more at:the world today www.botasot.al

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