Europe’s plan to end the sale of new petrol and diesel cars is under fresh scrutiny, as Brussels prepares changes that could reshape the pace and direction of the continent’s shift to electric vehicles – and expose deep divisions between governments, carmakers and climate campaigners.
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The European Commission is expected to propose easing the European Union’s effective ban on sales of new combustion-engine cars from 2035 this Tuesday, as Brussels weighs how best to balance climate ambitions with growing pressure from governments and an auto industry facing fierce global competition.
The move, still being finalised ahead of its unveiling, could see the ban pushed back by up to five years or softened indefinitely, according to EU officials and industry sources.
The 2023 law requires all new cars and vans sold in the bloc from 2035 to be CO2-emission-free.
Any revision would mark the EU’s most significant rethink of its green transport policies in recent years, reflecting concerns from major member states such as Germany and Italy, and from automakers struggling to keep pace with lower-cost Chinese electric vehicle (EV) makers and US rivals.
Threat to transition
«The European Commission will be putting forward a clear proposal to abolish the ban on combustion engines,» Manfred Weber, president of the European Parliament’s largest group, the European People’s Party (EPP), said on Friday. «It was a serious industrial policy mistake.»
Not all governments agree, however, as Spain’s Prime Minister Pedro Sanchez has urged the Commission to hold firm, warning that weakening the policy could undermine Europe’s efforts to build a globally competitive EV industry.
In a letter to European Commission President Ursula von der Leyen, Sanchez said further watering down of the rules risked delaying investment and threatening jobs by slowing the transition to electric mobility.
«We therefore reject that combustion vehicles or other technologies without proven viability could continue to be marketed beyond 2035,» the letter said.
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Industry split
The debate has highlighted sharp divisions within Europe’s car industry itself.
Traditional manufacturers such as Volkswagen and Fiat-owner Stellantis have lobbied for greater flexibility, arguing that EV demand has fallen short of expectations as consumers remain wary of higher prices and patchy charging infrastructure.
EU tariffs on Chinese-built EVs have only marginally eased the pressure.
«It’s not a sustainable reality today in Europe,» Ford CEO Jim Farley said last week, as he announced a partnership with Renault aimed at cutting EV costs.
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By contrast, EV makers and charging companies say the technology is ready and that any rollback risks sending the wrong signal to investors.
«The technology is ready, charging infrastructure is ready, and consumers are ready,» said Polestar CEO Michael Lohscheller. «So what are we waiting for?»
Possible compromise
Automakers are pushing to continue selling combustion-engine vehicles alongside plug-in hybrids, range-extender EVs and cars running on so-called CO2-neutral fuels, including e-fuels and advanced biofuels made from waste products. Von der Leyen said in October she was open to such alternatives.
«We recommend a multi-technology approach,» said Todd Anderson, chief technology officer at fuel-systems supplier Phinia, adding that the internal combustion engine would «be around for the rest of the century.»
Weber has suggested the commission could propose replacing the zero-emissions requirement with a 90 percent reduction in fleet CO2 emissions by 2035. Automakers also want the 2030 target of a 55 percent reduction in car emissions to be phased-in over several years, and to drop the 50 percent reduction target for vans.
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Germany has argued that sustainable practices such as using low-carbon steel should count towards emissions reductions – an idea echoed by Spain, which called for a «green steel label» and a mandatory minimum share of EU-manufactured content in vehicles.
The commission is also expected to outline measures to boost EV uptake in corporate fleets, which account for around 60 percent of new car sales in Europe. The industry favours incentives rather than mandatory quotas, pointing to Belgium as an example where subsidies have helped accelerate adoption.
Environmental groups, however, say the EU should stay the course.
«Europe needs to stay the course on electric,» said William Todts, executive director of clean transport advocacy group T&E. «It’s clear electric is the future.”
(with newswires)
