The European Commission has revised its ambitious plan to prohibit the sale of new petrol and diesel vehicles by 2035.
Under current regulations, new vehicles sold from that date forward were intended to be “zero emission.” However, significant lobbying efforts from automakers, particularly those in Germany, have resulted in concessions.
The European Commission’s revised proposal stipulates that 90% of new cars sold from 2035 must be zero-emission vehicles, a reduction from the initial 100% target.
According to the European Automobile Manufacturers’ Association (ACEA), current market demand for electric vehicles is insufficient, and manufacturers would face potentially substantial financial penalties without adjustments to the regulations.
The remaining 10% allowance could encompass conventional petrol or diesel vehicles, as well as hybrid models.
Automakers will be expected to incorporate low-carbon steel, produced within the EU, in their vehicle manufacturing processes.
The Commission also anticipates an increased adoption of biofuels and e-fuels, which are synthesized from captured carbon dioxide, to offset emissions from petrol and diesel vehicles.
Critics of the amended plan caution that it could impede the transition to electric vehicles and leave the EU vulnerable to international competition.
The environmental transport advocacy group T&E has urged the UK to maintain its commitment to phasing out conventional car sales under the Zero Emission Vehicles Mandate, rather than mirroring the EU’s adjustments.
“The UK must remain steadfast. Our ZEV mandate is already stimulating job creation, investment, and innovation within the UK. As major exporters, we must innovate to compete effectively, and global markets are rapidly adopting electric vehicles,” stated Anna Krajinska, UK director at T&E.
Prior to the announcement, Sigrid de Vries, director general at ACEA, emphasized the “urgent” need for “flexibility” for manufacturers.
“The year 2030 is fast approaching, and market demand is currently insufficient to avoid the risk of multi-billion-euro penalties for manufacturers,” she said.
“Building the necessary charging infrastructure and introducing fiscal and purchase incentives to stimulate the market will take time. Policymakers must provide manufacturers with the necessary breathing room to sustain jobs, innovation, and investments.”
UK-based automakers have previously advocated for enhanced incentives to encourage consumers to purchase electric vehicles ahead of the government’s planned 2030 ban on new petrol and diesel vehicle sales.
Automotive companies worldwide have been adapting their production lines and investing significantly as governments seek to encourage the adoption of greener vehicles to meet environmental objectives.
Volvo stated that it has “built a complete EV portfolio in less than 10 years” and is prepared to transition fully to electric vehicles, utilizing hybrids as an interim step. The company asserted that if it can transition away from petrol and diesel vehicles, other companies should be capable of doing so as well.
The carmaker stated: “Weakening long-term commitments for short-term gain risks undermining Europe’s competitiveness for years to come.”
“A consistent and ambitious policy framework, as well as investments in public infrastructure, is what will deliver real benefits for customers, for the climate, and for Europe’s industrial strength.”
However, German automaker Volkswagen welcomed the European Commission’s draft proposal on new CO₂ targets, deeming it “economically sound overall.”
The company stated: “The fact that small electric vehicles are to receive special support in future is very positive. It is extremely important that the CO₂ targets for 2030 are made more flexible for passenger cars and adjusted for light commercial vehicles.”
“Opening up the market to vehicles with combustion engines while compensating for emissions is pragmatic and in line with market conditions.”
Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU) think tank, stated that the UK’s “stable policy” would provide companies with the confidence to invest in charging infrastructure and avoid “jeopardizing investments.”
“It was government policy that saw Sunderland chosen to build Nissan’s original electric Leaf, and today the latest Nissan EV has started rolling off the production lines in the North East, securing jobs for years to come,” he said.
Octopus Electric Vehicles chief executive Fiona Howarth cautioned that if the UK reduces its goals in response to changes in Brussels, it would send a “damaging signal to investors, manufacturers and supply-chain partners.”
Many of these groups have already made significant investments in the transition “on the assumption the UK would stay the course,” she said.
The US carmaker is backing away from large electric vehicles, citing lacklustre demand and recent regulatory changes under US President Donald Trump.
The Conservative Party leader says the policy is “destructive” and “economic self-harm”.
A University of Leeds study finds pedestrian casualty rates are similar for both EVs and non-EVs.
The scheme is part of Rotherham Council’s Public EV Infrastructure Strategy, adopted in March 2024.
In the UK and across Europe, cars are becoming longer, wider and heavier.