The EU is scrapping plans to end sales of new petrol and diesel cars by 2035
The European Commission has downplayed its flagship plan to end the sale of new petrol and diesel cars by 2035, following heavy lobbying by carmakers worried about declining demand for electric vehicles.
Under existing rules, all new cars sold in the EU from 2035 were required to be “cost-free”. However, the Commission’s revised proposal would require only 90 percent of new vehicles sold since that date to meet the zero-emission standard, instead of 100 percent.
The remaining 10 percent would have conventional gasoline or diesel vehicles, as well as hybrids, with additional measures aimed at eliminating the resulting emissions.
The European Automobile Manufacturers’ Association (ACEA), which represents major car manufacturers including the German ones, has repeatedly warned that demand for electric vehicles is not growing fast enough to meet current targets. Without the changes, it said the manufacturers would face “billions of euros” in fines.
Sigrid de Vries, director general of ACEA, said before the announcement that more flexibility is urgently needed.
“2030 is close, and the market demand is too low to avoid the risk of multi-million euro fines for producers,” he said. “It will take time to build the charging infrastructure and introduce financial and purchasing incentives to get the market moving.”
In line with the soft sales rules, the Commission said carmakers are expected to increase their use of low-carbon steel produced in the EU. It also expects greater use of biofuels and so-called e-fuels, synthetic fuels made using captured carbon dioxide, to offset the increased emissions produced by gasoline and diesel vehicles.
Critics, however, have warned that the move risks Europe’s transition to electric cars and weakens its competitiveness with global rivals, particularly China and the United States.
Environmental group Transport & Environment (T&E) has warned that the UK should not follow Brussels by weakening its plans under the Zero Emission Vehicles (ZEV) mandate.
“The UK must stand firm,” said Anna Krajinska, director of T&E UK. “Our ZEV mandate is already driving jobs, investment and innovation in the UK. As a major retailer we cannot compete unless we innovate, and global markets are moving rapidly with electricity.”
Reaction from automakers has been mixed. German giant Volkswagen welcomed the Commission’s draft proposals, calling them “economically sound”.
“It is very important that the CO₂ targets for 2030 are made much easier for passenger cars,” the company said. “Opening up the market to vehicles with combustion engines while compensating for polluting emissions is sensible and in line with market conditions.”
Conversely, Volvo argued that weakening long-term commitments would harm the future of European industries. The Swedish automaker said it has built a fully electric vehicle portfolio in less than a decade and is ready to go fully electric, using hybrids only as a temporary transition.
“Reducing long-term commitments for short-term profits threatens Europe’s competitiveness in the coming years,” Volvo said. “A consistent and ambitious policy framework is what will deliver real benefits for customers, the climate and European industrial capacity.”
UK carmakers have previously called for drivers to be encouraged to switch to electric vehicles ahead of the government’s decision to ban new petrol and diesel cars from 2030.
Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), said policy stability was essential if the UK was to retain investment.
“It was government policy that made Sunderland choose to build Nissan’s first electric Leaf,” he said. “Today, the latest Nissan EV has entered production in the North East, securing jobs for years to come.”
Fiona Howarth, chief executive of Octopus Electric Vehicles, warned that any backlash by the UK in responding to EU reforms would send a “damaging signal” to investors and manufacturers.
“Many have already invested heavily in the idea that the UK will stay the course,” he said.
As governments around the world continue to push for greener transport to meet climate goals, the EU’s decision highlights the growing tension between environmental ambition and industry reality, and raises new questions about how fast the transition to petrol and diesel can go.
