Plans to ban the sale of new combustion engine cars in the European Union by 2035 have faced significant upheaval following mounting pressure from car manufacturers.
On Tuesday, the European Commission introduced a proposal that would limit the ban, initially affirmed in 2023, to only 90% of vehicles, rather than the full 100%. This adjustment allows for 10% of new cars produced after 2035 to include plug-in hybrid vehicles or those powered by internal combustion engines.
The announcement, made alongside additional measures aimed at supporting the European automotive sector, represents a setback in the EU’s efforts to combat climate change. Despite this, Ursula von der Leyen, the European Commission’s president, emphasized that Europe remains “at the forefront of the global clean transition.”
Beginning in 2035, car manufacturers will be required to adhere to a 90% reduction target for tailpipe emissions, with the remaining 10% emissions needing compensation through low-carbon steel or fuels such as e-fuels and biofuels, as stated by the European Commission.
The proposal is anticipated to garner approval from European lawmakers. Prior to the announcement, reports indicated that Manfred Weber, president of the European People’s Party (EPP), the largest faction in the European Parliament, supported the plan to effectively abolish the ban, labeling the prior decision as a “serious industrial policy mistake.”
This decision raises concerns regarding the EU’s environmental commitments. With a legally binding goal to achieve carbon neutrality by 2050, the transportation sector—which includes cars and vans—contributes to approximately 15% of the EU’s total greenhouse gas emissions. The phase-out of polluting vehicles was considered critical in the bloc’s climate strategy.
The new measures appear to be a concession to the automotive industry, which is facing challenges from high energy costs and U.S. tariff regulations on exports. Car manufacturers initially embraced the shift towards electric vehicles (EVs) amid high expectations, but have since encountered fierce competition from China and lower-than-anticipated consumer demand for EVs. Additionally, the disparity in charging infrastructure across Europe complicates the transition.
Tim Dexter, a policy manager for the environmental advocacy group Transport & Environment (T&E), expressed concern that this relaxation of the ban could have “significant consequences for the climate.” He highlighted that it sends a troubling message about the potential rollback of long-term commitments just as they begin to yield real emissions reductions.
The announcement comes on the heels of Ford’s decision to scale back its EV initiatives, anticipating a $19.5 billion impact on its earnings. Like Ford, other U.S. automakers had invested heavily in electric vehicle technology in response to stringent environmental regulations introduced during the Biden administration. However, recent rollbacks of these emissions standards and financial support under the Trump administration have fueled uncertainty, especially as states seek to implement stricter regulations.
Assessing a vehicle’s overall contribution to planet-warming emissions is complex, as it requires an analysis of the entire lifecycle, including manufacturing processes. While gas-powered cars, hybrids, and EVs have similar manufacturing emissions, the production of batteries for fully electric vehicles significantly inflates their carbon footprint. Research indicates that EVs are, on average, 40% more polluting to manufacture compared to hybrids and gas-powered vehicles.
However, over their entire lifespan, the picture changes. Despite the higher manufacturing emissions of gas-powered vehicles, their long-term pollution is substantially elevated due to tailpipe emissions. In contrast, while EVs may be more carbon-intensive during production, they yield the least carbon pollution over their operational lives—about 40% less than gas-powered cars.
