The European Commission is preparing to soften the EU’s 2035 ban on new combustion-engine cars, permitting certain non-electric vehicles to remain on sale after facing strong opposition from Germany, Italy, and the wider European automotive industry.
The EU executive appears to have yielded to the call from carmakers to be allowed to keep selling plug-in hybrids and range extenders that burn CO2-neutral biofuel or synthetic fuel as they struggle to compete against Tesla and Chinese electric vehicles.
Under current EU rules, all new cars from 2035 must have zero emissions. But under Tuesday’s proposal, the reduction of CO2 emissions will be reduced by 90% from 2021 levels, instead of 100%.
Manfred Weber – the German president of the EPP, the largest group in the European Parliament – said his understanding was that the 90% level had been agreed upon by the Commission and that the scaled-back reduction still represented progress.
Eu Climate Climb-Down As Ford Kills EVs
The move, which will need approval from EU governments and the European Parliament, would be the EU’s most significant climb-down from its green policies of the past five years.
It comes as U.S. carmaker Ford Motor announced on Monday it would take a $19.5 billion writedown and is killing several electric-vehicle models, in response to the Trump administration’s policies and weakening EV demand.
Eu Lagging China In EV Race
The electric vehicle industry warned that easing EU emissions targets will undermine investment and give China an edge in the EV transition.
The Commission will outline plans to increase EVs in corporate fleets, which make up about 60% of new car sales. Measures may include local content requirements, though the industry prefers incentives over mandates.
It is also expected to propose a new category for small EVs with lower taxes and extra CO2 credits, alongside credits for sustainable production such as using low-carbon steel.
(With inputs from Reuters)
