Portugal proposes fossil fuel-only car sale ban in 2035

Market: Oil products
11/01/21

Portugal's ruling Socialist party is proposing a ban on all sales of diesel and gasoline-only light vehicles in 2035, according to a draft climate framework bill.

Members of the party also propose the phasing out of state subsidies and tax breaks for fossil fuels to 2030, but said they are prepared to bring this forward to 2025 if consensus with other parties is achieved.

The proposed date for phasing out of conventional car sales is in line with a similar announcement by Japan in December, but less ambitious than the UK, which in November committed to banning the sale of new fossil-fuel only cars by 2030 — 10 years earlier than the previous deadline.

The Socialists' proposed phase-out has the support of the ecological PAN party, and would garner a majority in Portugal's lower assembly if supported by the Left Block.

The draft legislation will also probably need the green light from the European Union since it affects free commerce within the bloc, whose members are struggling to agree on a phase-out date for fossil-fuel only cars.

Several countries including Denmark, the Netherlands, Sweden and Ireland are seeking to ban sales in 2030, while Spain and France have unofficially proposed 2040 and some central European members with large car industries have suggested even later dates.

By Jonathan Gleave

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