EU Weakens 2035 Combustion Engine Ban Amid Industry Pressure

Europe's Climate Crossroads: The 2035 Engine Ban Compromise

The European Union has significantly weakened its landmark 2035 ban on new combustion engine vehicles, marking a dramatic policy reversal that reflects the complex balancing act between climate ambitions and economic realities. What was once hailed as a bold climate milestone has now been diluted to allow 10% of new vehicles to still be plug-in hybrids or internal combustion engine cars after 2035.

The Policy Shift: From 100% to 90% Zero-Emission Target

In a major concession to automotive industry pressure, the European Commission has proposed applying the emissions reduction target to only 90% of vehicles instead of the originally planned 100%. This effectively ends the complete phase-out of combustion engines that was adopted in 2023 as part of the EU's climate strategy. Under the new deal, automakers will be allowed to sell limited numbers of polluting vehicles past 2035 if they compensate for remaining emissions through low-carbon steel production or alternative fuels like e-fuels.

'This represents a pragmatic approach that maintains our climate goals while recognizing the challenges facing our automotive industry,' said an EU official who spoke on condition of anonymity. 'We're not abandoning our 2050 climate neutrality target, but we're adjusting the pathway to get there.'

Industry Pressure and Political Realities

The reversal comes after intense lobbying from European car manufacturers facing multiple challenges: fierce competition from Chinese electric vehicle makers, high energy costs, US tariffs, and lower-than-expected consumer demand for electric vehicles. According to Reuters, the automotive industry had been pushing for reconsideration due to concerns about the feasibility of transitioning to electric vehicles within the original timeframe.

'The original deadline was simply unrealistic given the infrastructure limitations and consumer adoption rates we're seeing,' said Maria Schmidt, automotive analyst at Berlin-based think tank. 'European manufacturers needed more flexibility to compete globally while making this transition.'

Climate Consequences and Environmental Concerns

Environmental advocates are sounding alarms about the potential climate impact of this policy shift. Cars and vans are responsible for about 15% of the EU's greenhouse gas emissions, and this rollback could have significant consequences for the bloc's goal of achieving carbon neutrality by 2050. According to CNN, clean transport experts warn this could result in 25% fewer electric vehicles sold in 2035 and divert investment from EVs to transitional technologies like plug-in hybrids.

The European Green Deal, the EU's flagship climate legislation approved in 2020, aimed to make Europe the world's first climate-neutral bloc by 2050. This policy reversal represents a significant departure from that ambitious vision.

Economic Implications and Competitive Landscape

The decision reflects broader concerns about EU industrial competitiveness in the face of growing Chinese EV dominance and shifting US policies. According to Euronews, the move has divided EU member states, with France opposing the change while Italy and Germany supported it. The automotive industry faces uncertainty as companies had already invested billions based on the original 100% target.

'This gives Chinese EV manufacturers a competitive advantage they didn't need,' noted climate policy expert Dr. Lars Weber. 'While European companies were preparing for a complete transition, Chinese manufacturers were already dominating the global EV market. Now we're sending mixed signals that could delay necessary investments.'

The Road Ahead: What This Means for Consumers and Industry

For consumers, the policy change means continued availability of combustion engine vehicles beyond 2035, though likely at higher prices due to emissions compensation requirements. For the industry, it provides breathing room but also creates uncertainty about long-term investment strategies. The EU has introduced additional measures including "super credits" for small EU-made electric cars, relaxed emission targets for vans and trucks, and €1.5 billion in battery production support.

As Europe navigates this climate-industrial crossroads, the weakened 2035 ban represents both a pragmatic compromise and a potential setback for climate action. The coming years will reveal whether this flexible approach accelerates or delays the transition to sustainable transportation that the continent—and the planet—urgently needs.