The EU Hesitated, Allowing Gas-Powered Cars to Survive for Another Generation | Carscoops

      Europe has replaced its 2035 combustion engine ban with a target to reduce emissions by 90% and introduced new flexibilities.

      The EU will now allow internal combustion engine (ICE) and hybrid vehicles to remain on the market beyond 2035 under the revised regulations.

      Automakers can meet emissions targets by using alternative fuels and green steel.

      There is now no formal end date for the sale of combustion engine cars.

      The European Union's ambitious plan to eliminate internal combustion engines by 2035, once perceived as a firm regulatory deadline, has now been revised. The European Commission has introduced a significant amendment to its automotive rules, providing more flexibility for the future.

      Instead of mandating a complete 100% reduction in tailpipe CO₂ emissions compared to 2021 levels, manufacturers now need to achieve a 90% reduction starting in 2035. The remaining 10% can be offset through a combination of biofuels, e-fuels, and credits linked to low-carbon steel production within the EU.

      The comprehensive automotive regulation framework, officially announced on December 16, will be submitted to the European Parliament and Council in 2026 for formal examination and approval.

      What Follows After 2035?

      In practical terms, this adjustment allows for the continued existence of pure ICE cars, mild hybrids, plug-in hybrids, and range extenders alongside electric and hydrogen vehicles. Notably, the updated proposal does not establish a new end date for combustion engine sales.

      Once the 90% emissions target is achieved, there is no fixed legal termination for selling ICE vehicles, as long as manufacturers can offset their emissions through the approved compensation methods.

      Automakers will also gain from relaxed 2030 requirements, with emissions targets now averaged over the 2030-2032 timeframe, offering manufacturers increased flexibility akin to the 2025 target approach.

      In reaction to these changes, industry leaders such as BMW, VW, Mercedes, Renault, and Stellantis have exerted pressure on the EU. Even Ford CEO Jim Farley cautioned the EU that its previous targets were overly stringent. It seems the influential voices in the industry have been acknowledged.

      Pressure From Industry Leaders

      This shift follows a year of high-level discussions between EU officials and the automotive sector, part of a broader “strategic dialogue” designed to restore trust after a prolonged period of tension, much of which arose from the VW diesel emissions scandal.

      However, the EU is not completely abandoning electrification. The Commission is prioritizing incentives for small, cost-effective electric cars manufactured in Europe, providing them with “super credits” that contribute more significantly to manufacturers’ emissions compliance.

      A new M1E vehicle category will also streamline regulations for electric vehicles measuring under 4.2 meters (13.7 ft) in length, facilitating targeted government incentives for these vehicles.

      Easing Regulatory Burdens

      To enhance stability for manufacturers, the Commission is suggesting a 10-year freeze on new vehicle regulations. This pause could considerably simplify compliance and enable clearer long-term planning for product development.

      In summary, the EU is not entirely reversing its course; rather, it is opting for a realistic approach over earlier rigidity. Combustion engines won't vanish after 2035; instead, they will be more strictly regulated.

      Along with the policy revision, the Commission is launching additional support for European battery production, investment in software-defined vehicles, and new local content requirements for electric vehicles, aimed at boosting competitiveness amidst growing pressure from Chinese automakers.