On Friday, European officials confirmed that the European Union will abandon its original plan to ban the sale of all new petrol and diesel cars starting in 2035. Instead, it will introduce a new 90% emissions reduction target, allowing continued use of advanced hybrids and alternative fuel vehicles beyond the initial deadline.
The European Commission is set to formally announce this policy shift on December 16 during a session in Strasbourg. This information was conveyed by Manfred Weber, chairman of the European People’s Party, the largest faction in the European Parliament. Weber stated at a press conference in Heidelberg that the Commission will present a clear proposal to lift the combustion engine ban next Tuesday.
The decision to retract the ban marks a victory for Germany, Italy, and other EU countries that have vigorously lobbied against the rigid 2035 deadline. These countries argued that the ban threatens hundreds of thousands of jobs in the automotive industry, especially amid rising competition from Chinese manufacturers. Seven EU member states – Germany, Italy, Poland, Bulgaria, Czech Republic, Hungary, and Slovakia – have officially called on the Commission to lift the ban[1]
Major car manufacturers such as Volkswagen, Mercedes-Benz, BMW, Renault, and Stellantis welcomed the greater flexibility in climate policy. They highlight that consumer demand for electric vehicles has not met expectations since the 2035 deadline was set in 2022. Markus Haupt, CEO of Spanish Volkswagen subsidiary SEAT, pointed out that postponing the ban could help companies transition until electric vehicles reach 100% or near 100% market share. Major car makers like Volkswagen, Mercedes-Benz, BMW, Renault, and Stellantis welcomed increased climate policy flexibility[3]
However, this change has sparked divisions within the automotive sector. Swedish manufacturers Volvo and Polestar sharply criticized the decision to withdraw from the ban plan. They warn that it will delay electrification and benefit Chinese competitors. Michael Lohscheller, CEO of Polestar, called the postponement of the 2035 deadline a ‘‘very bad idea,’’ emphasizing that Chinese firms will not halt their electric vehicle market push. The proposed change divided the automotive sector. Swedish makers Volvo and Polestar sharply criticized the decision to withdraw…[5]
Environmental organizations also condemned this move, viewing it as a step backward for the European Green Deal. Colin Walker from the Energy and Climate Intelligence Unit warned that the policy change will keep millions of families stuck longer with dirtier and more expensive petrol cars.
Spanish Prime Minister Pedro Sanchez urged the European Commission not to weaken the combustion engine sales ban. Meanwhile, German Chancellor Friedrich Merz defended the change, calling it essential to maintain ‘‘technological openness’’ that will provide the automotive industry with real planning security. Spanish Prime Minister Pedro Sanchez called on the Commission not to weaken the ban, while Merz defended the change…[10]
As Brussels prepares to ease regulations, the UK government reaffirmed its commitment to phase out new petrol and diesel cars by 2030. All vehicles with non-zero emissions are to be banned by 2035. A spokesperson from the UK Department for Transport emphasized that the country remains determined to meet these goals. As Brussels prepares to ease its rules, the UK government confirmed its commitment to phase out new petrol and diesel cars by 2030…[13]
Industry experts warn that the divergence between UK and EU climate policies could strain automotive supply chains. Due to deep integration of continental and British manufacturers, differences in regulations may cause complications and additional costs for companies operating across both markets. Divergence between UK and EU policies may strain automotive supply chains…[16]