The European Union is set to abandon its plan to ban new combustion-engine cars by 2035, yielding to intense pressure from Germany, Italy, and the automotive industry. The European Commission is expected to propose allowing carmakers to continue selling a limited number of petrol and diesel-fuelled cars beyond 2035, with a target to reduce CO2 emissions by 90% for new cars from 2035 onwards.
This move marks a significant U-turn on the EU’s green policies, which aimed to phase out combustion engines entirely by 2035 to accelerate the transition to electric vehicles. However, carmakers have argued that the transition is progressing slower than expected, and they’re facing fierce competition from China and high energy costs.
The proposal is likely to include incentives for carmakers to produce more electric vehicles, as well as rules allowing the continued sale of plug-in hybrids and range extenders using CO2-neutral biofuels or synthetic fuels. The EU executive is also expected to introduce a new regulatory category for small EVs, which would incur lower taxes and earn extra credits towards meeting CO2 targets.
The decision has divided opinions, with some arguing it will undermine investment in electric vehicles and hurt Europe’s competitiveness, while others see it as a necessary step to support the automotive industry and preserve jobs. The EU’s reversal on the ban is expected to have implications for the UK, which had planned to implement a similar ban on new petrol and diesel cars.
