EU Commission retreats on plan to ban new combustion engine cars

Plans to ban the sale of new combustion engine cars in the European Union from 2035 have been thrown into uncertainty after the European Commission proposed a significant softening of the rules. Under the revised approach, unveiled on Tuesday, the ban would apply to 90% of new vehicles rather than all sales, allowing the remaining 10% to include plug-in hybrids or models using internal combustion engines.

The proposal, part of a broader package aimed at supporting Europe’s struggling car industry, marks a retreat from the 2023 agreement and has drawn criticism from climate campaigners. Commission President Ursula von der Leyen insisted the EU remains “at the forefront of the global clean transition”, despite the dilution of one of its flagship climate measures.

Under the new framework, carmakers would be required to cut tailpipe emissions by 90% from 2035. Any remaining emissions could be offset through measures such as the use of low-carbon steel or alternative fuels, including e-fuels and biofuels. The plan is expected to win backing in the European Parliament, with senior figures in the centre-right EPP signalling support.

The move is seen as a concession to manufacturers facing high energy costs, weaker-than-expected demand for electric vehicles and fierce competition from Chinese rivals. However, environmental groups warn it risks undermining the EU’s goal of climate neutrality by 2050, with road transport accounting for around 15% of the bloc’s emissions.

In a reaction, the centre-right EPP group welcomed the decision. In a statement, it said that the proposal marks the starting point for a definitive change of course in EU climate and industry politics.

“The aim must be to effectively reduce CO₂ emissions while securing jobs and industrial value creation in Europe. It is now important to ensure that the package presented today is made practicable in the legislative process”, it added.