— In Brussels, the European Commission proposed on Tuesday to dilute the EU’s 2035 ban on the sale of new combustion-engine cars, cutting the requirement from a full phase-out to a 90% tailpipe emissions reduction target. The change would allow a 10% carve‑out of new vehicles after 2035 — potentially plug‑in hybrids, cars running on e‑fuels or models offset through low‑carbon steel—and marks a notable retreat from the 2023 commitment. The move, framed by the Commission as support for the continent’s auto industry, is widely seen by climate advocates as a setback for the EU’s emissions trajectory.
Key takeaways
- The European Commission proposed replacing the 100% sale ban approved in 2023 with a 90% tailpipe emissions reduction requirement for new cars from 2035, leaving a 10% carve‑out.
- The Commission said the remaining 10% could be offset via low‑carbon steel, e‑fuels or biofuels; exact compliance rules will be set in implementing texts.
- Cars and vans account for roughly 15% of the EU’s greenhouse‑gas emissions, making the 2035 policy central to the bloc’s 2050 carbon‑neutrality obligation.
- The proposal follows pressure from automakers facing high energy costs, export tariffs to the U.S., Chinese competition and uneven charging infrastructure across member states.
- Environmental group T&E warned the dilution could undermine long‑term emissions cuts and signal that commitments are reversible.
- Ford’s recent retreat from some EV plans—announced alongside a $19.5 billion charge—illustrates industry strain amid shifting regulatory and market dynamics.
- Lifecycle studies cited in coverage indicate EVs can be more carbon‑intensive to produce (driven by battery manufacture) but deliver roughly 40% lower lifetime emissions than equivalent petrol cars.
Background
In 2023 the European Parliament and Council agreed on a de facto ban on the sale of new vehicles with internal combustion engines by 2035, intended to accelerate the shift to zero‑tailpipe‑emission transport. That mandate was part of a broader package aimed at meeting the EU’s legal commitment to become carbon‑neutral by 2050. Automakers initially planned substantial investments in electric vehicle (EV) production to meet the stricter standards, but those plans have been challenged by rising energy prices, supply‑chain bottlenecks and strong competition from low‑cost EVs manufactured in China.
Charging infrastructure across the EU remains uneven: some member states have dense, fast‑charging networks while others lag behind, affecting consumer willingness to buy EVs. At the same time, transatlantic trade tensions and new U.S. tariff and subsidy policies have changed the competitive calculus for European producers. These industry and market pressures set the context for the Commission’s decision to propose a partial rollback rather than press ahead with a total sales ban.
Main event
The European Commission published a proposal on Tuesday that would require carmakers to achieve a 90% reduction in tailpipe emissions for new cars from 2035; the allowance for 10% of new vehicles to fall outside the reduction target can be fulfilled through plug‑in hybrids, approved low‑carbon fuels, or material‑based offsets such as low‑carbon steel. The Commission framed the package as a combined environmental and industrial policy designed to protect jobs and competitiveness while keeping a pathway toward decarbonisation.
Commission President Ursula von der Leyen defended the approach, saying Europe remains “at the forefront of the global clean transition,” and presenting the measures alongside support for vehicle manufacturing and green industrial supply chains. European lawmakers from some centre‑right groups signalled support for loosening the ban; Reuters reported statements from EPP leadership indicating backing for the new plan and calls to abolish a strict ban.
Industry officials and several member states welcomed the proposal as a pragmatic compromise that gives manufacturers more time to adapt production lines and supply chains. Environmental groups, by contrast, said the move weakens a key lever for rapid emissions reductions and raises questions about policy credibility ahead of 2050 targets. The Commission’s text still needs to pass through the co‑legislative process; observers say approval in the Parliament is likely but not guaranteed.
Analysis & implications
Policy‑wise, shifting from a 100% sales ban to a 90% tailpipe reduction introduces complexity into enforcement and measurement. Tailpipe targets require robust testing and monitoring regimes and create incentives for technological workarounds (for example, high‑efficiency internal combustion engines paired with offsets). The allowance of offsets such as low‑carbon steel or e‑fuels raises governance questions about additionality, verification and lifecycle accounting.
For the auto industry, the proposal reduces immediate regulatory risk and gives firms more flexibility in product portfolios, which could ease near‑term capital expenditure pressures. Yet it may slow the pace of electrification, weakening economies of scale for batteries and charging networks and potentially increasing long‑term costs for consumers and suppliers. The change may also affect investment flows: investors betting on a full rapid transition to EVs could reassess manufacturer valuations and supply‑chain strategies.
On climate outcomes, the shortfall from a full phase‑out could result in higher cumulative emissions through 2050 depending on how the 10% carve‑out is used and whether offsets are real and permanent. If offsets rely on unproven technologies or marginal fuel swaps, actual emissions savings could be lower than headline figures suggest. Internationally, the EU’s perceived moderation could influence policy debates in other jurisdictions and weaken the bloc’s leverage in global industrial standard‑setting for green vehicles.
Comparison & data
| Metric | Gas/Hybrid (manufacture) | EV (manufacture) | EV (lifetime vs gas) |
|---|---|---|---|
| Average production emissions | Baseline | ~40% higher (battery production) | — |
| Lifetime emissions | Reference | ~40% lower than equivalent petrol cars | — |
The table summarises lifecycle figures reported in recent coverage: battery manufacture makes EV production more carbon‑intensive up front, while lower operational emissions typically give EVs a lifetime advantage. These averages depend heavily on electricity mix, vehicle size, battery chemistry and manufacturing practices; region‑specific grid decarbonisation and recycling can materially change the outcomes.
Reactions & quotes
Commission leadership presented the package as balancing climate objectives and industrial realities. Below are representative reactions from officials, industry and advocacy groups, with brief context.
“Europe remains at the forefront of the global clean transition.”
Ursula von der Leyen, President of the European Commission
The Commission used this line to signal that the EU intends to keep leading on decarbonisation even while adjusting specific rules. Officials said the package combines emissions targets with industrial support measures to protect jobs and supply chains.
“The European Commission will be putting forward a clear proposal to abolish the ban on combustion engines… It was a serious industrial policy mistake.”
Manfred Weber, EPP leader (reported comment)
Comments from centre‑right lawmakers reflected industry concerns and helped shape momentum toward loosening the 2035 rule. Reuters reported that EPP figures backed replacing the ban with the emissions‑target approach.
“This dilution could have significant consequences for the climate… a signal that long‑term commitments can be rolled back just as they start to deliver real emissions cuts.”
Tim Dexter, Policy Manager, Transport & Environment (T&E)
Environmental NGOs highlighted the risk that a weakened standard reduces certainty for investors in charging infrastructure and battery factories, and could slow the rate at which tailpipe emissions fall.
Unconfirmed
- Whether the Parliament will formally approve the Commission’s proposal unchanged; reports indicate likely support but final votes and texts are not yet settled.
- How member states will translate the 10% carve‑out into concrete vehicle categories—whether predominantly plug‑in hybrids, ICEs on e‑fuels, or capped sales by manufacturer—remains to be defined in implementing rules.
- The precise emissions savings from the new package depend on the design and verification of offsets and lifecycle assumptions, which are still under negotiation.
Bottom line
The Commission’s shift from a full ban to a 90% tailpipe‑reduction approach is a pragmatic response to industry and political pressure, but it weakens the signal that had been pushing faster electrification. The policy change could ease near‑term industrial adjustment costs while introducing longer‑term uncertainty about the pace of emissions declines in transport.
Key questions now are how the 10% carve‑out is implemented, how offsets are verified, and whether complementary policies—stronger incentives for charging infrastructure, targeted subsidies for fast EV adoption, and stricter lifecycle accounting—will be deployed to secure real emissions reductions. Observers should watch the legislative process closely: small drafting choices in the coming months will determine whether the compromise preserves meaningful climate outcomes or materially delays decarbonisation.
Sources
- CNN (news report — original coverage of the Commission proposal and lifecycle figures)
- European Commission (official press releases and policy documents)
- Reuters (news reporting on lawmakers’ reactions and party statements)
- Transport & Environment (T&E) (NGO statement and analysis)
- Ford Motor Company (company filings and investor releases on EV plans and the $19.5bn charge)