EU Eases 2035 Petrol and Diesel Car Ban Rules
17th Dec. 2025
The European Commission has scaled back its landmark plan to end the sale of new petrol and diesel cars by 2035. The decision was taken to ease the pressure on carmakers after months of intense industry lobbying. Under revised proposals, 90% of new vehicles sold from 2035 would need to be zero-emission, rather than the previously stated 100%, which allowed limited room for conventional and hybrid models.
The move follows warnings from manufacturers, particularly in Germany, that sluggish demand for electric vehicles could leave the sector exposed to “multi-billion euro” penalties, if the original targets remained unchanged. As a result, the remaining 10% of sales could include petrol, diesel, and hybrid cars, with emissions offset through alternative measures.
European Carmakers Seek Flexibility amid Slowing EV Demand
According to the European Automobile Manufacturers’ Association (ACEA), market conditions are not yet aligned with a full ban. Ahead of the announcement, ACEA director general Sigrid de Vries stressed that flexibility was “urgent”. she said that “2030 is around the corner, and market demand is too low to avoid the risk of multi-billion-euro penalties for manufacturers”.
In addition, the carmakers will be expected to use low-carbon steel produced within the EU. At the same time, it anticipates wider use of biofuels and so-called e-fuels. It will be synthesized from captured carbon dioxide to compensate for additional emissions from combustion-engine vehicles.
German carmaker Volkswagen welcomed the draft proposal, calling it “economically sound overall”. It said opening the market to combustion-engine vehicles while compensating for emissions was “pragmatic and in line with market conditions”.
Climate Goals and UK Policy are the main concerns after the EU Ease on Car Ban Rules
However, environmental groups warned that the decision could weaken Europe’s competitive edge in the global electric vehicle race. The green transport group T&E cautioned that the UK should not mirror Brussels by diluting its own Zero Emission Vehicles mandate.
“The UK must stand firm. Our ZEV mandate is already driving jobs, investment, and innovation into the UK,” said T&E UK director Anna Krajinska. Volvo, which has built a full EV portfolio, cautioned that loosening long-term commitments could undermine Europe’s industrial strength. “Weakening long-term commitments for short-term gain risks undermining Europe’s competitiveness for years to come,” the company said.
Meanwhile, UK industry figures warned that policy instability could deter investment. Colin Walker of the Energy and Climate Intelligence Unit said stable policy had already helped secure EV manufacturing jobs in Sunderland, while Octopus Electric Vehicles chief executive Fiona Howarth warned that retreating from targets would send a “damaging signal” to investors. Together, the responses underline a widening divide between industrial pragmatism and climate ambition as Europe recalibrates its road to net zero.
Web Resources on the EU Eases Car Ban Rules by 2035
1. Reuters.com: EU drops 2035 combustion engine ban as global EV shift faces reset
2. Bloomberg.com: Europe Eases Combustion Engine Ban to help Ailing Industry
3. Politico.eu: Commission set to severely weaken 2035 combustion engine ban
4. AcademicBlock.com: Climate Change, Understanding the Global Crisis.