EU considers softening 2035 combustion engine ban

Brussels is set to propose scrapping the European Union’s 2035 ban on petrol and diesel vehicles, potentially allowing carmakers to continue producing a limited number of combustion engine cars beyond the original deadline.

The ban, a key pillar of the bloc’s Green Deal, was intended to phase out all combustion engine vehicles by 2035. Under the proposed revision, European manufacturers could produce up to 10 per cent of 2021 emissions levels, provided they meet certain conditions. These may include using green steel in vehicle production and allowing electric vehicles to include range extenders — small backup fuel engines — which were previously prohibited after 2035, Financial Times writes. 

The European Commission is expected to present the proposal on December 16, though details remain under discussion and any changes would require approval by EU governments and the European Parliament before becoming law.

Carmakers have long lobbied against the ban, citing the slow adoption of electric vehicles (EVs) and patchy charging infrastructure. Germany and Italy have been especially critical, with German Chancellor Friedrich Merz stating on December 12, “the reality is that there will still be millions of combustion engine-based cars around the world in 2035, 2040 and 2050.”

The EU’s move could put pressure on the UK’s Labour government, even as Britain maintains its plan to shift all new car sales to EVs from 2035. Meanwhile, Spain and France have emphasised the need to enforce the ban, arguing in a joint October paper that the future of the European car industry “will be electric.”

Both countries, however, supported some flexibility, such as “super credits” for cars made with European materials, to ease pressure on domestic manufacturers facing competition from Chinese EVs and rising energy costs.

Despite the debate, EV sales in the EU have grown 26 per cent from January to October this year, accounting for 16 per cent of new car sales, according to industry body Acea. Affordable models from European and Chinese manufacturers have helped drive this growth.

Environmental groups warn that weakening the ban could harm Europe’s global climate leadership.

“Scrapping the ban would be a major mistake for Europe,” said Simone Tagliapietra, senior fellow at Brussels-based think-tank Bruegel. “It would do little to help carmakers, as electrification is the future of the industry, and it would seriously undermine what is left of Europe’s reputation as a global climate leader.”

Automakers, however, emphasise the need for flexibility. Thomas Schäfer, chief executive of Volkswagen brand, said in Barcelona on December 12, “The future is electric. On the way there, you need a bit more flexibility to make sure that you can deliver what customers actually want.”

Manufacturers from BMW, Renault, and Stellantis have similarly highlighted that the slower-than-expected pace of EV adoption and lower profitability of electric models justify adjustments to the 2035 target.

By Sabina Mammadli