The European Commission has significantly diluted its flagship policy to ban the sale of new petrol and diesel cars by 2035, following intense lobbying from major automakers. The original law mandated that 100% of new cars sold from that date be “zero-emission.”
Under the revised proposal, the target has been lowered to 90%, leaving a 10% allowance for new internal combustion engine vehicles. This concession is designed to accommodate hybrids and cars running on synthetic e-fuels, which are produced from captured carbon dioxide.
Industry groups, particularly in Germany, had warned that the strict original targets were untenable. Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA), argued that with 2030 approaching, “market demand is too low to avoid the risk of multi-billion-euro penalties for manufacturers.” She called for “flexibility” and “breathing space” to sustain jobs and investment.
The amended rules also introduce new requirements for carmakers to use low-carbon steel manufactured within the EU and anticipate a greater role for biofuels and e-fuels to offset emissions from the remaining combustion engines.
The move has drawn sharp criticism from environmental advocates, who argue it undermines the transition to electric vehicles and leaves the EU vulnerable to foreign competition. Anna Krajinska of Transport & Environment UK urged the British government not to follow suit, stating: “The UK must stand firm. Our ZEV mandate is already driving jobs, investment and innovation… global markets are going electric fast.”
By James Kisoo
