The European Union (EU) has officially stepped back from its previously planned 2035 ban on the sale of new internal combustion engine (ICE) vehicles, making a significant recalibration of its automotive emissions strategy. The new policy changes what was once a firm deadline for ending sales of new petrol and diesel vehicles across the union’s state members.
The European Commission (EC) has revised its approach to the 2035 target, replacing the earlier requirement for a 100% reduction in vehicle carbon dioxide (CO2) emissions with a more flexible framework. Instead of a full phase-out, carmakers will now be required to meet a 90% reduction in average fleet emissions by 2035, measured against the existing policy’s 2021 levels.
This adjustment means the sale of new ICE vehicles will not be outright prohibited after 2035. A limited number of ICE-powered models, including hybrid vehicles and those running on alternative low-carbon fuels, may continue to be sold, provided manufacturers meet the revised emissions threshold. The remaining emissions gap may be addressed through approved offset mechanisms, such as the use of sustainable fuels or low-carbon materials in vehicle production.
The move represents a notable shift from the EU’s earlier stance, which placed 2035 as a hard stop for new petrol and diesel cars. It follows growing pressure from several member states and industry stakeholders who raised concerns about the economic and industrial implications of a 100% ICE ban. Automakers argue that supply-chain constraints, uneven electric vehicle (EV) adoption rates, and global competition require a more technologically neutral transition.
Under the updated proposal, the EU is seeking to balance long-term climate objectives with industrial competitiveness. By allowing multiple pathways to reduce emissions rather than mandating a single technology outcome, policymakers aim to give manufacturers greater flexibility while still driving substantial carbon reductions.
Reactions to the announcement have been a mixed bag. Parts of the automotive industry have welcomed the decision, viewing it as a realistic adjustment that acknowledges market realities and preserves consumer choice. Environmental groups, however, have criticised the change, warning that weakening the 2035 target could slow the pace of electrification and undermine climate commitments.
While the revised framework has been formally presented, it still requires approval from the Parliament and EU member states before it becomes a law. Further debate is expected as lawmakers weigh the trade-offs between economic growth and environmental sustainability.
