EU softens 2035 combustion engine ban, allows hybrids to stay on the market

The EU will no longer enforce a full ban on new cars with combustion engines from 2035. Under a revised plan presented Tuesday by the European Commission, new vehicles must reduce CO2 emissions by 90 percent compared to 2021, rather than being completely emission-free. This change allows car manufacturers to keep selling hybrid models in Europe.

Although the ban was previously approved, France and Germany, two of the EU’s largest car producers, have long opposed a full ban. They worry their auto industries would be unable to compete with nations such as China if only electric cars were allowed. The Netherlands, MEPs, and car manufacturers also called for the removal of the ban.

The remaining 10 percent of CO2 that new cars may emit must be offset in other ways. Manufacturers can achieve this by using EU-produced green steel, which is made without CO2 emissions, or by powering the vehicles with biofuels, which release less CO2 than conventional oil and gas.

Under the earlier ban, vehicles with combustion engines bought before 2035 were already permitted to remain on European roads.

The European Commission is also relaxing climate rules for vans. Vans set to hit the market in 2030 were initially required to cut CO2 emissions by 50 percent, but this target has now been lowered to 40 percent, as electrifying heavier vehicles has proven more challenging than expected.

If approved by EU member states and the European Parliament, this would mark another scaling back of a previously ambitious climate target. Earlier, the EU also postponed a deforestation law and eased its goal of cutting CO2 emissions by 90 percent by 2040.

Dutch MEPs must still evaluate the consequences of the EU’s decision. CDA representative Tom Berendsen notes there are “both advantages and disadvantages” to the plan.

Berendsen, speaking for the CDA in the EPP, the European Parliament’s largest political group, said, “The CDA supports ambitious goals for clean European cars, integrating green steel in manufacturing, and significantly boosting battery production in Europe. At the same time, we acknowledge worries about the German auto industry and the intense competition from China.”

Mohammed Chahim, representing GroenLinks-PvdA within the Social Democrats, criticized the EU Commission’s easing of rules. “The decision is clear and vital: either we cling to outdated technology for short-term gains, or we fully commit to electric vehicles and long-term growth. Chinese automakers are pursuing the latter and are already surpassing our hesitant auto industry,” he argued.

Bas Eickhout of GroenLinks-PvdA, speaking for the Greens, warned, “Creating more uncertainty does not help the auto industry. Current rules have finally prompted manufacturers to produce cheaper electric cars, and changing direction now would only delay the shift to electric vehicles.”

The proposal still requires formal approval from both the European Parliament and the EU member states.