The European Commission has weakened its main plan to end the sale of new petrol and diesel cars by 2035, following intense efforts by carmakers to slow demand for electric vehicles.
According to current regulations, from 2035 all new cars sold in the EU had to be “zero-emissions”. However, the Commission’s revised proposal stipulates that from this date only 90 percent of new vehicles sold must meet the zero-emissions standard, instead of 100 percent.
The remaining 10 percent could consist of conventional gasoline or diesel vehicles as well as hybrid vehicles, with additional measures intended to offset the resulting emissions.
The Association of European Automobile Manufacturers (ACEA), which represents major car manufacturers, including in Germany, has repeatedly warned that demand for electric vehicles is not growing fast enough to meet current targets. Without changes, manufacturers face fines “several billions of dollars”.
Speaking ahead of the announcement, ACEA Director General Sigrid de Vries said greater flexibility was urgently needed.
“The year 2030 is just around the corner and market demand is too low to avoid the risk of millions of dollars in fines for manufacturers,” she said. “It will take time to build the charging infrastructure and introduce tax and purchasing incentives to get the market on track.”
In addition to the lower sales targets, the Commission said carmakers would be expected to increase the use of low-carbon steel produced in the EU. In addition, increased use of biofuels and so-called e-fuels, synthetic fuels made from captured carbon dioxide, is expected to offset the additional emissions from gasoline and diesel vehicles.
But critics warned that the move could jeopardize Europe’s transition to electric vehicles and weaken its competitiveness against global rivals, particularly China and the United States.
Environmental group Transport & Environment (T&E) warned that the UK should not follow Brussels and weaken its own plans under the zero-emission vehicle (ZEV) mandate.
“The UK must stand firm,” said Anna Krajinska, director of T&E UK. “Our ZEV mandate is already supporting jobs, investment and innovation in the UK. As major exporters, we cannot compete if we do not innovate, and global markets are quickly becoming electric.”
Reactions from car manufacturers were mixed. German giant Volkswagen welcomed the Commission’s draft proposals, calling them “economically sound overall.”
“It is extremely important that the 2030 CO₂ targets for passenger cars are made more flexible,” the company said. “Opening the market for vehicles with combustion engines while compensating for emissions is pragmatic and in line with the market.”
In contrast, Volvo argued that weakening long-term commitments would harm Europe’s industrial future. The Swedish automaker said it had built a full electric vehicle portfolio in less than a decade and was ready to go fully electric, using hybrids only as a short-term transition.
“Weakening long-term commitments in favor of short-term gains risks weakening Europe’s competitiveness for years to come,” Volvo said. “A consistent and ambitious policy framework will deliver real benefits for customers, the climate and Europe’s industrial strength.”
Car manufacturers in the UK have previously called for stronger incentives to encourage drivers to switch to electric vehicles before the government bans new petrol and diesel cars from 2030.
Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), said political stability was crucial if the UK wanted to sustain investment.
“It was government policy that led to Sunderland being chosen to build Nissan’s original electric Leaf,” he said. “Today the latest Nissan electric vehicle rolls off the production line in the North East, securing jobs for years to come.”
Fiona Howarth, chief executive of Octopus Electric Vehicles, warned that any UK withdrawal in response to EU changes would send a “damaging signal” to investors and manufacturers.
“Many have already invested heavily assuming the UK would stay on track,” she said.
As governments around the world continue to push for greener transport to meet climate targets, the EU’s decision highlights the growing tension between environmental ambitions and industrial reality and raises new questions about how quickly the transition away from petrol and diesel can realistically take place.
