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Reactions to the European Commission's proposal to reverse the 2035 ban on combustion engines
On Tuesday, the European Commission made public proposals to reverse an effective prohibition on sales of new cars with internal combustion engines from?2035. This was in response to pressures from Germany, Italy, and major automakers. The revised package reduces the 2035 target to a 90% reduction in tailpipe emissions as compared to 2021. It also introduces measures that will accelerate the transition to electric vehicles, while giving manufacturers more flexibility. The reactions to this decision are: STEFFEN KAWOHL IS A POLICY ADVISOR FOR THE GERMAN MITTELSTAND (DMB). The automotive industry will still undergo a transformation, even if the combustion engine ban is lifted. This would only be justified if the German economy used the extra time to accelerate the transition to fossil free mobility. DOMINIC PHINN HEAD OF TRANSPORTATION AT CLIMATE GROUP "Today is a tragic victory for an industry that clings to the past, over a sector competitive and forward-looking ready to 'drive Europe into a prosper future. The watering down the phase-out of petrol and diesel engines is a slap in the face to leading companies in Europe who have invested billions of dollars in electric fleets?and need the stability they provide. CHRIS HERON SECRETARY GENERAL OF E-MOBILITY EUROPE It's not the right time for Europe take the wind out its own sails. Europe's electric cars markets are growing rapidly, but by reopening to plug-ins and unscalable fuels, we will slow down our global race. The future of transportation is electric. But the question is, will Europe build it or import it? FRIEDRICH MERZ - GERMAN CHANCELLOR It is good that after a clear signal from the German government, the Commission has now opened up the regulation in the automobile sector. To better align climate goals, market realities and businesses, we need to be more open to technology. JAN DORNOFF RESEARCH LEADER AT THE INTERNATIONAL CONSULTANCIL ON CLEAN TRANSPORTATION The Automotive Package shows that the European Commission is committed to the electrification of cars, as shown by the small and affordable electric car initiatives. "But the proposed changes to CO2 standards will delay the necessary transformations." BEN NELMES, CEO OF NGO NEW AUTOMOTIVE "What Europe needs to do is be consistent and clear in its approach towards the battery industry." By rewriting the rules, the European Commission undermines trust in their 'own regulations' and gambles with Europe’s economic future. JULIEN THOMAS TP ICAP MIDCAP ANALYST "We believe that these measures are generally beneficial to European manufacturers. Especially those who produce high volumes of light commercial vehicles, where regulatory uncertainty caused sales to drop this year, such as Renault and Volkswagen. VOLKSWAGEN The Volkswagen Group considers the European Commission's draft proposal on new CO2 emissions targets to be economically sound. "It is very positive that the future will see small electric vehicles receive special support. It is vital that CO2 targets are adjusted to light commercial vehicles and made more flexible. It is pragmatic to allow vehicles with combustion engines on the market while compensating emissions. This is in line with current market conditions. VOLVO CAR "Weakening commitments to short-term gains risks undermining Europe's competitiveness in the years ahead." "Investing in public infrastructure and a consistent, ambitious policy framework will bring real benefits to customers, the climate and Europe's industrial strength." "Volvo cars has built a complete EV range in less than ten year and is ready to go fully electric with a long-range bridge hybrid. "If we can do this, so can others." THOMAS PECKRUHN PRESIDENT ZDK, GERMANY ASSOCIATION OF MOTOR VEHICLE TRADE "Our businesses are faced with the same problems that European regulations fail to address: high costs of charging, a lack of infrastructure, and a suitability for consumers' everyday use. Climate-neutral transportation only works when it's affordable, reliable and practical for the people. "Anything else is just a theory." (Written by Mathias de Rozario, Gdansk. Edited by Matt Scuffham.
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What's in the European Commission proposals to reverse the 2035 combustion engine prohibition?
The European Commission made public on Tuesday proposals to reverse the effective ban on new sales of internal combustion engines cars starting in 2035. This was done as a result of pressure from Germany and Italy, along with major automakers. The 'delayed package' follows intense lobbying for transitional technologies like plug-in hybrids or CO2-neutral gasoline, while EV-focused businesses and climate campaigners pushed to maintain the original target. The revised package reduces the 2035 target to 90% of what was originally planned, while also introducing measures to speed up the transition to electric vehicles and give manufacturers more flexibility. The main changes are: CO2 REVISIONS According to the plan, automakers can still sell plug-in hybrids as well as range extenders after 2035. The shortfall must be made up by those who do not meet the CO2 reduction target of 100%. CO2-neutral fuels such as advanced biofuels made from waste (such as used cooking oils) and low-carbon Steel will be included in emissions calculations. This means automakers that produce cars using this "green steel" with a lower carbon content can reduce emissions even further. These 'flexibilities" do not allow automakers to pool their emissions together with those of EV only brands like Tesla and Polestar in order to meet the targets. CORPORATE FLEET Small and medium sized businesses with less than 250 workers and below 50 millions euros in turnover will be exempted from the electrification target. The member states will only give 'financial assistance for clean vehicles produced in the EU. This is a victory for France who pushed for incentives for local production. The electrification of fleets can help create a market for second-hand electric vehicles, since rental companies keep their cars on average for one year and leasing firms for three years. The national market share target is set at 32% for Bulgaria in 2035 and 100% for other richer countries. SUPER CREDITS FOR THE NEW SMALL EV CATEGORY The Commission will create an entirely new category of?small electric vehicles under 4.2 meters in length, similar to Japan’s "kei" cars. Each sale counts 1.3 times. This means that 10 small EVs will be credited as 13. This category can also be used to simplify other measures at the state level as well as the EU. Renault?and Stellantis are lobbying for a new category of small cars in the EU, arguing it will reduce costs and make EVs affordable. Commercial vehicles, such as vans, will have to reduce their emissions by 40%, down from 50%. The automakers can also average the compliance rate over a period of three years, from 2030 to 2032. This will give them more flexibility. BATTERY BOOSTER PACK Package also includes a battery booster pack that will receive financial support in Europe's race to scale up gigafactories, and compete with China. The Commission will invest 1.8 billion euro to accelerate Europe's value chain for batteries, including 1.5 billion euro in interest-free loan to battery cell producers. Battery boosters will be able to benefit from the upcoming Industrial Accelerator Act due in January. It will contain details about prioritizing local content.
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Gold prices rise as US unemployment rates increase in November
Gold rose on Tuesday, after a U.S. employment report showed that?the?unemployment rate increased last month compared to September. This reinforced bets for rate cuts by the U.S. Federal Reserve. The dollar index also fell. As of 11:17 am, spot gold rose 0.2% to $4.308,31 per ounce. ET (1617 GMT). U.S. Gold futures rose 0.1% to $4,340.20. The U.S. Dollar?fell to its lowest level in two months, making the price of greenback bullion more accessible for overseas buyers. Benchmark 10-year U.S. Treasury yields have also dipped. Bob Haberkorn, senior market strategist at RJO Futures, said: "The data give the Fed more reasons to cut rates. If they do so, it's good for gold." The U.S. employment rate rose in November but was still 4.6%. This is due to the economic uncertainty caused by President Donald Trump's aggressive trading policy. An economist survey estimated that the unemployment rate was 4.4%. The Federal Open Market Committee announced a quarter point rate cut last week. Chair Jerome Powell’s comments accompanying the announcement were perceived to be less hawkish that expected. U.S. Rate Futures still expect two 25-basis-point cuts each in 2026. They are pricing in 59 basis points of easing in 2019. Gold that does not yield tends to thrive in an environment of low interest rates. Investors are awaiting the Consumer Price Index for November, which is due Thursday, and Personal Consumption Expenditures Index, which is due Friday. Alex Ebkarian said that if gold ends 2025 above $4400, it could reach $4,859 to $5,590 by 2026. Silver, he added, 'could test the $50/oz mark next year. Spot silver dropped 0.9% to $63.39 per ounce after a record high was reached on Friday of $64.65. Platinum rose 3.8% to its highest level in September 2011 at $1,850.68. Palladium also gained 2.8%, reaching a new two-month high of $1,611 an ounce. Ebkarian said that the platinum group metals have been bursting out due to tighter supply and increased demand.
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Gold prices rise as US unemployment rates increase in November
Investors analyzed the U.S. jobs data?which showed that the unemployment rate increased last month compared to September. This reinforced bets on rate cuts by the U.S. Federal Reserve, and sent the dollar index down. As of 09:07 am, spot gold rose 0.4%, to $4,316.67 an ounce. ET (14:07 GMT). U.S. Gold futures rose 0.3% to $4,347.10 The U.S. dollar fell to its lowest level in two months, making the price of greenback bullion more accessible for buyers from abroad. Benchmark 10-year ?U.S. Treasury yields have also slipped lower. The U.S. employment rate rose to 4.6% in November, after a decline in non-farm payrolls in October. However, the economic uncertainty caused by President Donald Trump's "aggressive" trade policy was causing the unemployment rate to rise. An economist survey estimated that the unemployment rate was 4.4%. Bob Haberkorn, senior market strategist at RJO Futures, said that the data "gives the Fed more reasons to cut rates" and that a rate cut would be bullish for the gold market. The Federal Open Market Committee announced a rate cut of a quarter point last week. Chair Jerome Powell's comments accompanying the announcement were perceived to be less hawkish that expected. CME's FedWatch tool says that the chances of a rate cut in January increased to 26,6% from 24,4% before?the data. Rate futures in the U.S. still anticipate two cuts of 25 basis points in 2026. This pricing in 59 basis points of easing in 2019. Gold that does not yield tends to?do well in an environment of low interest rates. Investors are now looking ahead to the Consumer Price Index for November, which is due out on Thursday, as well as the Personal Consumption Expenditures Index, scheduled for release on Friday. Spot -silver dropped 0.6% to $63.58 per ounce after hitting a record of $64.65 an ounce on Friday. Platinum rose 2.3% to reach $1,824.50 - its highest level since Sept. 2011. Palladium climbed 0.8% to $1.580.22, a new two-month record.
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Nigerian House will investigate the dispute between Dangote and regulator over fuel imports and pricing
The Nigerian House of Representatives voted on Tuesday to?investigate a dispute?between the downstream?oil regulator of the country and Dangote?Refinery, over allegations?about arbitrary licenses for fuel imports and petrol price benchmarks. This was in response to corruption allegations against the regulator's head. Aliko Dangote, Nigeria's richest man, has escalated his fight with the Nigerian ?Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), accusing it of ?allowing in cut-price fuel imports that squeeze local refineries, including his ?650,000-barrel-per-day Lagos plant, Africa's largest. Dangote wants a formal investigation into the NMDPRA's Farouk Ahmad, citing concerns about governance and claims that he has spent personal money beyond his declared income. The lawmakers warned that the dispute could lead to a shortage of fuel during the holiday season and that regulatory uncertainty would threaten energy security and investor trust. The House Petroleum Committees are mandated to report back in four weeks on the resolution of the dispute. Members claim that the Dangote refinery is a "strategic investment" which could help Nigeria to reduce its dependence on imported fuel, generate much-needed foreign currency, and moderate prices. They claimed that disputes between the regulators and the country's largest domestic refiner could disrupt supply, cause price volatility and lead to policy inconsistencies. Legislators did not announce hearing dates immediately. Reporting by Camillus Eboh, Writing by Elisha Gbogbo and Editing by Hugh Lawson.
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Sources say that Midad, a Saudi company, is among the frontrunners for Lukoil to sell its global assets.
Three people with knowledge of the matter claim that Saudi Arabia's?Midad Energy?is one of the top contenders for the international assets of Russian?oil giant?Lukoil, taking advantage deep political ties between Moscow and Washington. Sources have confirmed that the assets, which are valued at around $22 billion, include oilfields, refineries, and thousands of fuel station worldwide. About a dozen investors have made bids for these assets, including U.S. major oil companies Exxon Mobil, Chevron, and private equity firm Carlyle. Lukoil wants to sell off its foreign operations, which were crippled by the U.S. sanctions that were imposed on October to pressure Russia to end its conflict in Ukraine. Lukoil and Midad Energy declined to comment. The U.S. Treasury didn't immediately respond to comments. Abdulelah Al-Aiban is the CEO of Midad Energy and brother to Musaed Al-Aiban. Musaed Al-Aiban was a powerful Saudi national security advisor who participated in U.S.-Russian peace talks in Saudi Arabia in February. Their father, Mohamed Al-Aiban was the first intelligence chief of Saudi Arabia. Midad Energy's bid is in line with the booming economic co-operation between the U.S., Saudi Arabia and Donald Trump. This builds on decades of security and energy ties. Riyadh signed deals with Washington in 2025 that covered defence, energy, and technology. Saudi Arabia pledged investments up to $1 trillion. Midad Energy is part of Midad Holding - a subsidiary of Al Khobar's Al Fozan Holding. It has a bold expansion strategy. This was highlighted by the $5.4 billion Algerian deal in October. Sources said that Midad Energy is planning to make an all-cash bid for Lukoil’s assets, and the funds will be held in escrow till sanctions against the Russian company have been lifted. One source said that the deal may involve U.S. firms. Geopolitical obstacles have already prevented Gunvor and U.S. Bank Xtellus Partners from purchasing Lukoil's assets. Washington's sanctions on Rosneft and other Russian oil companies bar U.S. residents from doing business with them, freeze their U.S. interests, and cut off major sources of financing. Lukoil must sell its assets by January 17, according to the Treasury's latest deadline. Reporting by Jarrett Renshaw, Dmitry Zhdannikov. Mark Potter edited the article.
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Shell approves US Gulf Waterflood Project to Boost Oil Recovery
Shell, the oil major, has made a final investment decision for a 'waterflooding project' at its Kaikias Field in the U.S. Gulf of Mexico. The project aims to increase oil recovery and prolong the life of Ursa Platform. The project will add an additional 60 million barrels of oil to the recoverable resources. Shell, the top deep-water operator in the U.S. Gulf, is making a new investment to maintain liquids production of?nearly 1.4 million barrels per day?until the year 2030. The first injection is scheduled for 2028, and will extend Ursa’s production cycle by several years. Waterflooding is a secondary oil recovery technique in which water is injected into the reservoir. This displaces additional oil, and then re-pressurizes the formation. Shell operates?Ursa - a tension leg platform located in the Mars Corridor - and holds a 61.3% share alongside BP, ECP GOM III and others. Shell announced in February that it had increased its working interest on the Ursa platform. Kaikias was discovered in 2014 and has been producing since 2018. It is located in more than 4,000 foot (1,219 metre) of water, about 130 miles (210 km) from Louisiana. (Reporting and editing by Jan Harvey; Reporting by Stephanie Kelly)
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FranceAgriMer reduces non-EU wheat forecast and increases EU demand
FranceAgriMer cut its forecast for 2025/26 for French soft-wheat?exports? outside the EU due to the Argentine harvest, which is expected to increase overseas competition. However, the farm office increased its outlook for intra EU shipments based on feed demand. Wheat prices have been impacted by high estimates of ongoing harvests in Argentina, Australia and other countries. This is because the expectation for an abundant global supply has increased. FranceAgriMer's monthly forecast for July-June soft wheat exports to non-EU countries is 7.6 million tons, a decrease from the 7.85 million tons projected last month. Habasse Diagouraga, a FranceAgriMer grain expert, told reporters that despite the fact that French shipments to Morocco, the main non-EU market, continued in January, they would face increasing competition from Argentinean wheat during the coming months. After a wet harvest, the reduced forecast is still more than twice as high as a century low of 3.5 millions tons in 2024/25. The office, on the other hand, increased its forecast for intra-EU soft grain shipments from 7,05 million to 7,39 million tons. Diagouraga said that the demand for French wheat at competitive prices was increasing in Europe due to slower-than-usual maize imports. FranceAgriMer's projection of soft wheat stock at the end of 2025/26 was reduced to 2,74 million tons, from 2,83 million, due to a sharply upward revised intra-EU export forecast. The office has increased its forecast for barley exports to 3.4 millions tons from 3.25 million tons projected in November, 45% more than last season's level. Diagouraga stated that France continues to experience a steady flow for North Africa and Middle East after strong early-season Chinese demand. FranceAgriMer, a result of the higher export forecast, has reduced its estimate for French barley ending stock to 1,46 million tons from 1,70 million last month. The office reduced the expected ending stock of maize to 1,86 million, from 1,97 million, due primarily to a lower estimate of supply. Reporting by Gus Trompiz. (Editing by Bernadette B. Baum and Mark Potter.
EU drops 2035 combustion engine ban after automaker pressure
The European Commission has proposed that the EU will drop its effective ban on combustion engine cars by 2035, allowing some non-electric vehicle sales to continue. This is in response to intense pressure from Germany and Italy as well as Europe's auto sector.
The EU executive has reportedly bowed down to carmakers who want to continue selling plug-ins and range extenders which burn fuel, as they are struggling to compete with Tesla and Chinese electric vehicles makers.
All new cars and vans must have zero emissions by 2035, according to current EU regulations. In the proposal of Tuesday, instead, the goal would be to reduce CO2 emissions by 90% from levels in 2021.
The remaining emissions would have to be offset by the use of lower carbon steel produced in the EU, synthetic efuels or other non-food biofuels like agricultural wastes and used cooking oil.
Plan also gives automakers three years from 2030 to 2020 to reduce CO2 emissions from cars by 55% compared to levels in 2021, and the vans'?2030 targets would be lowered to 40% instead of 50%.
EU CLIMATE CLIMBDOWN AS FORD CRAPS EVS These moves, which need approval from EU government and European Parliament,'mark the biggest retreat by the EU from its green policies enacted in the last five years. Ford Motor announced a $19.5 billion writedown on Monday as it "axed" several EVs in response to Trump's policies, and the weakening demand for EVs. Volkswagen and Fiat's owner Stellantis, among others, have also cited a softening EV demand. They've also called for looser targets and lowered fines if they aren't met. The automotive lobby ACEA dubbed the current moment as "high noon" in the sector.
German manufacturers are particularly stressed as they are losing ground to their local competitors in China and face increasing competition from Chinese EV imports at home.
The EU tariffs on Chinese-built EVs?have only provided limited relief.
EU LAGGING CHINA In EV Race The EV Industry warned that easing emission targets could undermine investments and cause Europe to fall further behind China when it comes to the switch to cleaner driving.
"We may think that reducing the clear target of?100% emissions to 90% is a small step, but it will have a big impact on our climate. Michael Lohscheller is the CEO of Swedish EV maker Polestar.
William Todts said that the EU is playing with time, while China is?racing forward'.
He said that clinging to combustion engine won't make European carmakers great again. The Commission has also outlined 'plans to increase EV adoption in corporate fleets which accounts for 60% of all new car sales in Europe. The national targets for 2030-2035 will be set "based on GDP per capita", leaving it up to the countries to determine how they want to achieve them. Belgia's tax incentives for EV company vehicles have been cited as a good example by industry groups. The Commission also proposed creating a category of small EVs that would be subject to less restrictive rules and qualify for additional credits towards the CO2 target if they were made in Europe. Reporting by Philip Blenkinsop. Charlotte Van Campenhout, Nick Carey and Charlotte Van Campenhout contributed additional reporting. Joe Bavier, Mark Potter and Joe Bavier edited the article.
(source: Reuters)