Full Breakdown
EU Softens 2035 Ban on Combustion Engine Cars Amid Industry Pressure
12/17/2025, 7:54:36 PM
Overview of the Proposal Changes
The European Commission has proposed significant revisions to its 2035 ban on new combustion engine cars, allowing for a 90% reduction in CO2 emissions instead of the previously mandated 100%. This change permits the continued sale of plug-in hybrids and internal combustion engine vehicles, a move influenced by intense lobbying from major automotive manufacturers and key EU member states, particularly Germany and Italy. The proposal aims to balance the EU's climate ambitions with the economic realities faced by the automotive industry, which is struggling against fierce competition from Chinese electric vehicle (EV) manufacturers.
Key Details of the Revised Emission Targets
Under the new proposal, automakers must achieve a 90% reduction in tailpipe emissions compared to 2021 levels by 2035. The remaining 10% of emissions can be offset through the use of low-carbon steel produced in the EU or sustainable fuels such as biofuels and synthetic e-fuels. This shift allows for a broader range of vehicle technologies to remain on the market, including hybrids and range extenders, which had been previously excluded under the original ban.
Industry Response and Implications
The automotive sector has largely welcomed the changes, viewing them as a necessary concession to maintain competitiveness. Manfred Weber, president of the European People's Party, described the revisions as a response to the industry's needs, emphasizing the importance of job security within the sector. However, environmental groups and advocates for electric mobility have expressed concerns that these changes could undermine the EU's long-term climate goals and slow the transition to fully electric vehicles. William Todts, executive director of the clean transport advocacy group Transport & Environment, warned that the EU's decision to allow combustion engines to persist could hinder investment in EV technology.
Conflicting Perspectives on the Proposal
While some EU member states, including Germany and Italy, have pushed for more flexibility in emissions regulations to protect their automotive industries, others, such as Spain, have urged the Commission to maintain stricter targets. Spanish Prime Minister Pedro Sanchez cautioned that weakening the ban could jeopardize Europe's efforts to establish a competitive EV market. This division highlights the broader tension between economic interests and environmental commitments within the EU.
What's Next for the Proposal
The revised proposal will require approval from both the European Parliament and EU member states, where further negotiations are expected. The Commission's plan also includes measures to enhance the uptake of EVs in corporate fleets, which account for a significant portion of new car sales in Europe. Additionally, a new regulatory category for small electric vehicles is anticipated, which would provide incentives for manufacturers to produce affordable EVs.
Verbatim Quotes
- “Moving from a clear 100% zero-emissions target to 90% may seem small, but if we backtrack now, we won’t just hurt the climate. We’ll hurt Europe’s ability to compete,” — Michael Lohscheller, CEO of Polestar
- “Here are the reactions to the decision: "Abandoning the ban on combustion engines may slow down the transformation of the automotive industry, but it will not stop it entirely.” — Anonymous EU Official
- “The future belongs to electromobility, and I believe that too. We mustn't slacken our support for electromobility, especially when it comes to expanding the charging infrastructure,” — Peter Liese, European People's Party Lawmaker
- “Bas Eickhout of GroenLinks-PvdA, speaking for the Greens, warned, “Creating more uncertainty does not help the auto industry.” — Bas Eickhout, GroenLinks-PvdA
The proposed changes reflect a significant shift in the EU's approach to automotive emissions regulations, balancing the need for environmental sustainability with the economic pressures facing the automotive industry.
