The European Commission said on Tuesday that it would ease the planned 2035 ban on new petrol and diesel cars by shifting to a target requiring carmakers to cut tailpipe emissions by 90 percent. The remaining 10 percent would be offset by using low-carbon steel produced in the European Union (EU) or by e-fuels and biofuels.
Under the Automotive Package proposed by the Commission, automakers could still sell some non-fully electric vehicles (EVs) after 2035, such as plug-in hybrids, range extenders, and mild hybrids, alongside fully electric and hydrogen models.
This would mark a shift from the EU rules adopted in 2023, which set a 100 percent carbon reduction target for new cars and vans from 2035.
This policy change is seen as a "major victory" for the EU's center-right parties and the automotive industry, and also marks a key concession by the EU on its path to "full electrification.”
The EU’s move has articulated the real challenges facing its automotive industry.
Currently, in the field of electric vehicles, European companies lag behind globally advanced automakers in core technologies such as batteries. Additionally, trade frictions triggered by the U.S. and sluggish car sales in the EU have further weighed on Europe’s auto industry.
Against this backdrop, Europe’s automotive industry believes that banning the sale of internal combustion engine vehicles that emit carbon dioxide would weaken its competitiveness.
However, this policy shift has also sparked divisions within Europe.
Environmental groups warn that continued investment in plug-in hybrid technology could undermine long-term commitment to full electric vehicles, thereby widening the gap with competitors.
"I'm from Germany, and we have a very strong car industry, and I understand that some car producers would like to continue producing cars with combustion engines. But I think if Europe had decided very early on that we would transition completely to electric vehicles, there would have been the assurance that you can plan ahead and prepare for this transition. I am not happy about the EU going from the 100 percent target to 90 percent. I would really like to see the EU transitioning completely to 10 percent electric vehicles by 2035," said a German student in Belgium.
Some EU member states are also concerned that repeated policy shifts could damage the EU’s international credibility regarding its climate commitments.
In practice, the proposal still faces a lengthy political process before it can be implemented. It will next be submitted to the European Parliament and EU member states for review.
However, major EU countries have significant disagreements on this issue: Spain hopes to maintain the status quo, France advocates linking flexible measures regarding the ban to localized production, while Germany opposes France's "buy European" approach, fearing it could trigger trade disputes with other countries.
EU proposes to ease 2035 zero-emission requirements for new cars
