EU softens 2035 ban on new petrol and diesel cars

The European Commission has softened its approach to the planned 2035 phase-out of new petrol and diesel cars, easing requirements following sustained pressure from parts of the automotive industry.

Under existing regulations, all new cars sold in the EU from 2035 were due to be zero-emission. However, manufacturers, particularly those based in Germany, have argued that current market conditions make the target difficult to achieve.

The Commission’s updated proposal would require 90% of new car sales to be zero-emission from 2035, falling short of the previous 100% mandate. The remaining 10% could include petrol and diesel vehicles, as well as hybrids.

Manufacturers will also be expected to increase their use of low-carbon steel produced within the EU. In addition, the Commission anticipates greater reliance on biofuels and e-fuels, which are synthetic fuels made using captured carbon dioxide to offset emissions from internal combustion engine vehicles.

Industry body the European Automobile Manufacturers’ Association (ACEA) warned that demand for electric vehicles remains insufficient and that failing to adjust the rules could expose carmakers to “multi-billion euro” fines.

However, critics of the changes argue that weakening the targets could slow the transition to electric mobility and leave European manufacturers at a disadvantage against international competitors.

Dominic Phinn, Head of Transport at Climate Group, a non-profit that works with some of Europe’s largest companies committed to 100% electric fleets, said: “This is a tragic win for the entrenched power of an industry clinging to the past over a competitive, forward-looking sector ready to drive Europe into a prosperous future.
 
“The watering down of the petrol and diesel-engine phase-out flies in the face of leading companies across Europe, who are investing billions in electric fleets and desperately need the stability it provides. And ironically, it jeopardises the automotive industry as it delays the inevitable, putting Europe in a position where it simply won’t compete with other global markets racing towards electric transport at record speed.” 

Vicky Read, chief executive, ChargeUK said: “This adjustment does not change the fact that the transition to EVs is happening. The sale of almost all petrol and diesel cars will cease across the EU by 2035 if not before. Any thought of reopening discussion about the UK's own ZEV mandate, which already contains flexibilities to support car manufacturers, would be a major over reaction putting billions of investment in charging at risk and undermining driver confidence.
 
“EV sales have been consistently strong in the UK, supported by the mandate and an EV charging industry that is investing billions of pounds in private capital to roll out critical infrastructure ahead of forecasted demand. The UK's focus should now be on building on this progress and supporting even more drivers to switch. We should not be looking over our shoulder at the rest of Europe but ahead, towards a future where the UK is a clean transport leader.”