EU Set to Scale Back Plan to Ban Combustion Engine

(MENAFN) Brussels is poised to dilute its landmark climate regulation that would have prohibited combustion engine vehicle sales by 2035, multiple outlets reported Tuesday, marking a significant retreat after relentless lobbying from carmakers and governments across the bloc.

The European Commission plans to unveil revised legislation today that abandons the existing mandate requiring complete zero-emission compliance for all newly sold cars and vans starting in 2035. Industry sources indicate the updated framework will instead demand a 90% reduction in carbon dioxide output compared to 2021 benchmarks—a notable rollback from the current 100% standard.

This adjustment creates a pathway for manufacturers to continue marketing select plug-in hybrid models and range-extending vehicles that consume fossil fuels beyond the previously established deadline. According to media, companies would need to compensate for residual emissions through EU-manufactured low-carbon steel and alternative fuels including synthetic e-fuels or biofuels derived from agricultural byproducts and recycled cooking oil.

The Commission has simultaneously weakened requirements for commercial vans, reducing the 2030 emissions reduction target from 50% to just 40%.

Industry leaders have expressed skepticism about whether this policy reversal strengthens Europe's competitive position in the global automotive market. Michael Lohscheller, CEO of Swedish EV maker Polestar, warned: "Moving from a clear 100% zero-emissions target to 90% may seem small, but if we backtrack now, we won't just hurt the climate. We'll hurt Europe's ability to compete."

William Todts, executive director of clean transport advocacy group T&E, criticized the idea, saying: "Clinging to combustion engines won't make European automakers great again."

The reversal of the green deal—originally ratified in 2023—reportedly stems from sustained pressure by major automotive manufacturers and appeals from multiple nations including Germany and Italy. Europe's automotive sector faces mounting challenges: escalating trade friction with the United States, fierce rivalry with China, a turbulent electric vehicle transition, fractured supply networks, and skyrocketing energy expenses following the cutoff of Russian natural gas. These converging crises have triggered factory closures and corporate insolvencies throughout the continent.

Parliamentary approval from EU member states and the European Parliament remains necessary before any modifications become binding law.

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