The European Union (EU) has taken a step back in its plan to ban the sale of combustion engine cars starting in 2035, after months of pressure from several governments — including Spain, Italy, and Germany — and the automotive industry.
Until now, the regulation required all new cars from that date to have zero CO₂ emissions. However, the European Commission has softened the measure and proposes that manufacturers meet a 90% emissions reduction threshold, instead of the initially planned 100%.
A Controversial Measure
The Vice President of the Commission, Stéphane Séjourné, defended the proposal as a “lifeline” for the European automotive industry, ensuring that the bloc’s climate goals remain intact.
Nevertheless, the decision has generated strong criticism. The French Environment Minister, Monique Barbut, stated that France will do “everything in our power” to prevent the proposal from becoming law.
Critics argue that this reversal sends contradictory signals to manufacturers and markets, undermining confidence in European climate policy.
Transport, a Sector with Increasing Emissions
Transport is the only sector where greenhouse gas emissions have increased in the EU over the last three decades. According to the European Environment Agency, cars account for more than 60% of total transport emissions.
From Brussels, community officials insist that the modification does not compromise the goal of achieving climate neutrality by 2050. The European Climate Commissioner, Wopke Hoekstra, described the measure as “a smart and sensible compromise for climate and competitiveness.”
What the New Regulation Implies
The new framework will allow manufacturers to continue selling a limited number of polluting vehicles beyond 2035, including:
- Plug-in hybrids.
- Electric vehicles with auxiliary combustion engines to extend range.
- To a lesser extent, gasoline and diesel cars.
To compensate for the remaining 10% of emissions, companies will have to resort to:
- Low-emission steel produced in the EU.
- Synthetic fuels (e-fuels) and biofuels.
Additionally, the Commission plans to incentivize electric and hydrogen vehicles through a system of “supercredits”, where small and affordable electric cars manufactured before 2035 could count as 1.3 vehicles for quota purposes.
Criticism from the Sector and Experts
Organizations like Transport & Environment (T&E) warn that the new proposal introduces confusion in a sector that was already adapting to the zero emissions target.
“Every euro invested in plug-in hybrids is a euro not spent on electric vehicles, while China continues to advance,” noted William Todts, executive director of T&E.
The entity estimates that, with the new approach, up to 25% fewer battery electric cars would be sold in 2035 than with the original target. It also warns that credits for biofuels and e-fuels could artificially reduce electric sales without generating real emission savings.
Business and Geopolitical Tensions
The business association E-Mobility Europe summarized the sector’s concern: “Hesitation is not a strategy.” Changing the rules mid-game, they argue, undermines business confidence after many companies have invested billions in factories with the 100% target in mind.
The associations CLEPA and ACEA also warned that the 100% target was no longer viable under current conditions, due to Asia’s dependency for batteries, U.S. tariffs, high production costs, and uneven charging infrastructure in Europe.
In contrast, more than 150 executives from the electric sector, backed by companies like Volvo Cars and Polestar, signed an open letter calling to maintain the original target, warning that any delay will give an advantage to global competitors and erode investor confidence.
Europe vs. China
China is advancing faster than Europe and the United States in adopting electric cars: battery vehicles accounted for 34% of the Chinese market in the third quarter of 2025, driven by state subsidies and intense price competition.
In Europe, sales of 100% electric cars grew by 26% in the first ten months of the year, reaching 16% of new registrations. However, gasoline and diesel engines still hold significant weight.
With the new 90% target, the EU expects non-electric vehicles to still represent between 30% and 35% of sales in 2035.
The relaxation of the ban on combustion cars reopens a crucial debate: how to balance industrial competitiveness with climate goals? While some celebrate the measure as a relief for the industry, others see it as a setback that could slow electrification and widen the gap with China.
The future of European mobility will depend on whether the EU can maintain the confidence of manufacturers, investors, and citizens in its commitment to climate neutrality by 2050.
