Tag Archive: European Rules and Regulations

  1. E-fuels only able to supply 2% of European car fleet by 2035, study claims

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    Source: Euractiv, S. G. Carroll

    A new study claims that the low production levels associated with e-fuels, a hydrogen-derived fuel source advertised as a green solution for combustion engine vehicles, means that the alternative will only be able to cover 2% of the EU’s vehicle fleet.

    The analysis, carried out by clean mobility NGO Transport & Environment (T&E), predicts that e-fuel production will still be in its infancy by the time the draft EU ban on the sale of petrol and diesel cars is enacted. Due to the theoretically carbon-neutral status of e-fuels (CO2 is captured for production), fuel manufacturers and automotive industry figures have pushed for the official classification as a petrol/diesel green alternative by European lawmakers.

    Essentially, this would extend the sell-by date of combustion engine vehicles beyond the current 2035 EU deadline. However, as suggested by the T&E study, this is not a viable alternative – just 5 million cars out of the EU’s fleet of 287 million could fully run on synthetic fuel in 2035.

    Yoann Gimbert, an e-mobility analyst at T&E, rejected claims that e-fuels represent a clean solution for cars, calling synthetic fuels a “Trojan Horse for the fossil fuel industry”.

    E-fuels are presented as a carbon-neutral way to prolong the life of combustion engine technology. But the industry’s own data shows there will only be enough for a tiny fraction of cars on the road,” he said.

    On the other hand, the FuelsEurope trade association has referred to the analysis as “disingenuous and deeply misguided“. John Cooper, FuelsEurope Director General, argued that focusing on e-fuels only misses the trade association’s larger point, which is that a range of technologies and feedstocks can be deployed to decarbonize road transport beyond 2035, leading to a broader and more stable approach.

    Negotiations are currently underway between EU institutions to finalize CO2 emission standards for cars and vans, with the next round of discussions set to take place on 27 October, and the role of e-fuels sure to be a hot topic. Read the full Euractiv analysis here.

  2. Commission Regulation 2020/1296 discriminates EU E-Bike Assemblers

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    On 29 September, we announced the publication of a new Regulation on essential bikes parts from China. LEVA-EU has now thoroughly analysed the text and concludes that the Regulation results in a serious discrimination of companies that only assemble electric bicycles. Below is a summary of this analysis. On 8 December, LEVA-EU has a meeting with DG Trade to discuss the problem. A story to be continued.

    • Since 1997, there is an extension of the anti-dumping duties on conventional bicycles from China by means of 48.5% anti-circumvention duties on essential bicycle parts.
    • European assemblers can obtain an exemption from this anti-circumvention duty. They must prove to the European Commission that the value of Chinese components does not exceed 59% of the value of the bike or the value added through assembly must be more than 25% of the manufacturing cost.
    • Once such exemption obtained, it is valid indefinitely and it does not require any additional compliance/reporting guarantees and obligations such as paying security deposits, etc.
    • Some essential bicycle parts are also used for the assembly of electric bicycles. They have been excluded from the 48.5% anti-circumvention duties by Regulation 512/2013. However, explicit exemption must be obtained by applying for end-use authorisation with national customs.
    • With the introduction of anti-dumping duties on electric bicycles from China, some companies have moved their assembly to Europe. In some cases, companies had an exemption for essential bicycle components for conventional bicycles, which they also used to import bicycle components for electric bicycles. However, there was uncertainty as to the legality of this procedure.
    • In an attempt to provide legal certainty, the European Commission has published Regulation 2020/1296. With that Regulation, the Commission certifies that companies in the EU, that assemble both conventional and electric bicycles, are allowed to use their exemption, originally awarded for assembly of conventional bicycles, for the duty free import of essential bicycle components for the assembly of electric bicycles.
    • This extension of the scope of the exemption appears to be automatic. In the Regulation, there is no procedure to report nor to assess whether companies effectively use essential bicycle components for the assembly of electric bicycles.
    • This Regulation does not grant companies, that assemble electric bicycles only, the same exemption for essential bicycle components imported for the assembly of electric bicycles. Instead, these companies must obtain exemption from 48.5% anti-circumvention duties through the end-use authorisation. This procedure is handled by national customs. There are numerous examples of companies trying to obtain this authorisation in vain. The administrative and financial burden resulting from this procedure is extremely heavy and complicated.
    • LEVA-EU has concluded that Commission Implementing Regulation 2020/1296 violates the principle of equal treatment and creates unfair conditions in the market of electric bicycles in the EU.  Therefore, LEVA-EU is of the opinion that the Commission makes either all producers of electric bicycles subject to an end use relief or to the Commission exemption system. 
    • If your company is assembling e-bikes only and has (had) difficulties in obtaining end-use authorization, please contact Annick Roetynck at LEVA-EU, tel. +32 9 233 60 05, email annick@leva-eu.com. We are collecting relevant testimonies.
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