EU Softens Its Stance on Combustion Engine Ban

The European Union has signaled a significant shift in its automotive and climate policy by softening its long-standing plan to effectively ban new petrol and diesel cars by 2035. The move reflects growing concern over industrial competitiveness, consumer affordability, and the pace of the electric vehicle (EV) transition across member states.

Under the original plan, agreed earlier in the decade, all new passenger cars and vans sold in the EU from 2035 onward were required to produce zero CO₂ emissions at the tailpipe. While never a literal “ban” on combustion engines, the regulation would have made traditional petrol and diesel vehicles commercially unviable. The policy became a global symbol of Europe’s ambition to lead the transition away from fossil fuels.

Greater flexibility for automakers

Recent policy adjustments introduce more flexibility into how manufacturers can meet emissions targets. Rather than a rigid zero-emissions requirement, the EU is now emphasizing steep overall CO₂ reductions while allowing limited room for alternative technologies, such as advanced hybrids, low-carbon fuels, or other compliance mechanisms.

EU officials argue the change does not undermine climate goals but instead provides a more pragmatic pathway for decarbonisation. The revised approach is intended to help European carmakers navigate rising costs, supply-chain pressures, and intense competition from non-EU manufacturers, particularly from China.

Industry pressure and economic realities

The shift follows sustained lobbying from the automotive industry and several EU member states with large car manufacturing sectors. Automakers have warned that a rapid, inflexible transition could lead to factory closures, job losses, and reduced global competitiveness if consumers are unwilling or unable to adopt EVs at the required pace.

High vehicle prices, uneven charging infrastructure, and concerns over battery supply chains have also slowed EV adoption in parts of Europe. Policymakers increasingly acknowledge that consumer demand, not just regulation, will determine the success of the transition.

Mixed reactions across Europe

The policy change has drawn mixed reactions. Industry groups and some governments have welcomed the move as a realistic adjustment that protects jobs and investment. They argue that technological neutrality—allowing multiple solutions to reduce emissions—will foster innovation rather than dictate a single outcome.

Environmental groups, however, have criticized the decision, warning that loosening the rules risks delaying climate progress and sending uncertain signals to investors. They argue that the original 2035 target was already known to industry and essential for meeting the EU’s long-term climate commitments.

A recalibrated transition

Rather than abandoning its climate ambitions, the EU appears to be recalibrating them. Electrification remains central to Europe’s transport strategy, but policymakers are increasingly focused on balancing environmental goals with economic stability and social acceptance.

The softened stance highlights a broader trend in European policymaking: adapting ambitious climate targets to real-world market conditions while trying to maintain global leadership in clean mobility. How effectively this balance is struck will shape the future of Europe’s car industry—and its climate goals—for decades to come.