EU Combustion Engine Ban 2035 Faces Major Policy Shift

On October 30, the EU combustion engine ban 2035 faced its most significant rethink yet as the European Commission introduced a proposal that would soften the bloc’s planned phase-out of new petrol and diesel vehicles. The move reflects growing pressure from Europe’s automotive industry as manufacturers navigate slowing electric vehicle uptake and rising global competition.
If approved by EU member states and the European Parliament, the proposal would move away from a strict zero-emission mandate. Instead, it would allow certain non-electric vehicles to remain on sale beyond 2035, provided their emissions are offset through approved mechanisms. Germany and Italy, home to some of Europe’s largest automotive producers, have been among the strongest advocates for regulatory flexibility.
EU Combustion Engine Ban 2035 and Flexible Compliance Models
Under the revised framework, the EU would replace the existing requirement for zero-emission new cars and vans by 2035 with a 90 percent reduction in CO₂ emissions compared to 2021 levels. Automakers would be required to compensate for residual emissions using approved measures such as lower-carbon materials and alternative fuels.
Key compliance pathways outlined in the proposal include:

• Use of EU-produced low-carbon steel in vehicle manufacturing

• Adoption of synthetic e-fuels

• Application of non-food biofuels derived from agricultural waste and used cooking oil

This approach signals a shift from absolute bans toward emissions-based accounting, offering manufacturers more operational flexibility while maintaining overall climate objectives.
Revised CO₂ Targets for Cars and Vans
The proposal also introduces changes to interim emissions targets, giving automakers additional time to adjust production strategies. Instead of a single milestone, the EU plans a phased approach between 2030 and 2032.
The revised targets include:

• A 55 percent CO₂ reduction for cars by 2032, measured from 2021 levels

• A 40 percent reduction target for vans by 2030, eased from the earlier 50 percent goal

• A three-year compliance window to smooth investment and production planning

These adjustments are designed to reduce financial strain on manufacturers while preserving long-term decarbonization goals.
Automaker Reactions to the EU Combustion Engine Ban 2035 Shift
Europe’s largest carmakers have broadly welcomed the proposed changes. Volkswagen described the framework as economically realistic and aligned with market conditions, particularly highlighting support for smaller electric vehicles and greater flexibility for the 2030 transition period.
However, environmental groups have criticized the proposal, arguing that easing the phase-out risks slowing Europe’s transition to fully electric mobility. Critics contend that regulatory certainty is essential for companies that have already committed substantial investments toward electrification.
Global EV Market Reset Shapes European Policy
The EU’s policy rethink comes amid broader global uncertainty in electric vehicle markets. Several major automakers have flagged weaker-than-expected EV demand, prompting reassessments of product portfolios and capital allocation strategies.
Industry analysts suggest the sector is entering a recalibration phase rather than abandoning electrification altogether. The evolving regulatory stance in Europe reflects this reality, favoring adaptive compliance models over rigid timelines as the industry balances technological readiness, consumer demand, and supply-chain constraints.
As discussions progress through EU institutions, the proposed changes to the EU combustion engine ban 2035 underscore a pivotal moment for Europe’s automotive transition—one that prioritizes flexibility while still anchoring long-term emissions reduction goals.