The European Union has softened its 2035 car emissions ban, raising alarms about climate targets and the pace of electric vehicle adoption. On Tuesday, EU officials moved to ease the ban on sales of internal combustion engine cars in response to pressure from governments and automakers.
Currently, EU law requires all new cars after 2035 to have zero CO2 emissions. Following lobbying from some member states and the automotive industry, the Commission reduced the target. From 2035 onwards, carmakers will need to achieve a 90 per cent tailpipe emissions reduction instead of 100 per cent. European Commission vice-president Stéphane Séjourné called the plan a “lifeline” for the automotive industry while asserting that the bloc’s climate goals remain intact.
Some member states, including Italy and Germany, pushed for the ban to be fully reversed. Others, however, criticized the added “flexibility” for combustion engine vehicles. French environment minister Monique Barbut said France would do everything possible to stop the proposal from becoming law when EU states vote on it. Critics warn the rollback sends mixed signals to manufacturers and climate policy alike.
What the rollback means for EU emissions targets
Transport is the only sector in the EU where greenhouse gas emissions have risen over the last 30 years. Cars account for just over 60 per cent of total transport emissions, according to the European Environment Agency.
EU officials insist the revised limit will not derail progress toward a climate-neutral economy by 2050. Climate Commissioner Wopke Hoekstra described the compromise as “smart and wise for climate and competitiveness.” Yet manufacturers can now sell a limited number of polluting vehicles beyond 2035, including plug-in hybrids, electric vehicles with small combustion engines, and petrol or diesel cars.
Automakers must offset the remaining 10 per cent of emissions using two methods. First, they can use low-carbon steel produced in the EU. Second, they can rely on e-fuels or biofuels, a factor largely outside their control. Séjourné emphasized that all additional emissions must be fully offset upstream. Fully electric and hydrogen vehicles will still receive incentives, including “super credits” to help companies meet quotas. Small, affordable electric vehicles produced before 2035 can count as 1.3 cars toward compliance, easing pressure on manufacturers.
Clean transport experts slam move as confusing
Experts argue the rollback adds complexity rather than clarity. William Todts, executive director of Transport & Environment, said the EU chose complexity over clarity. He warned that investing in plug-in hybrids diverts resources from full electric vehicles while China accelerates its market.
T&E projects up to 25 per cent fewer battery electric vehicles will be sold by 2035 under the revised target. Credits for biofuels and e-fuels could allow manufacturers to sell fewer EVs while claiming emissions reductions that do not exist. Advanced biofuels, which cannot scale sustainably, may increase Europe’s reliance on imported used cooking oil and animal fats, sometimes linked to fraud. Chris Heron, secretary general of trade association E-Mobility Europe, added that changing the rules mid-transition undermines business confidence after companies already invested in factories aligned with the original 100 per cent trajectory.
Is a 2035 combustion car ban feasible?
In late August, the European Association of Automotive Suppliers and the European Automobile Manufacturers’ Association wrote to Commission President Ursula von der Leyen. They argued a full emissions ban for cars by 2035 is no longer feasible. Manufacturers cited dependency on Asian battery supply, US tariffs, higher production costs, and inconsistent charging infrastructure.
The associations emphasized that rigid CO2 targets for 2030 and 2035 are unachievable and that legal penalties alone will not drive the transition. Meanwhile, over 150 executives from Europe’s electric car sector urged the EU to maintain the 2035 zero-emissions goal. Leaders from Volvo Cars and Polestar stressed that any delays would stall Europe’s EV market, strengthen competitors abroad, and erode investor confidence. The letter warned that transitional technologies like plug-in hybrids or CO2-neutral fuels create uncertainty and slow electrification, while Chinese EV makers advance rapidly.
Battery vehicles already represented 34 per cent of the market in China in the third quarter, benefiting from state support and competition in affordable electric cars. Both the EU and the US lag behind in EV adoption compared to China.
Electrification in Europe remains unavoidable
Industry analyst Tristan Beucler said electrification will proceed “with or without the EU.” He added that scrapping clear industrial targets weakens the business case for companies investing in electric vehicles and extends the life of technologies that will not compete in the next decade.
Battery-only car sales in Europe grew 26 per cent during the first ten months of this year compared to the same period last year. Electric vehicles now account for 16 per cent of new car sales. Petrol and diesel cars remain significant, and under the new 90 per cent target, the EU expects non-electric vehicles to make up around 30 to 35 per cent of sales by 2035.
