The European Commission has revised its plan to effectively end the sale of new petrol and diesel cars by 2035, now allowing 90% of new vehicle sales to be zero-emission rather than 100%. This shift comes after intense lobbying from car manufacturers, especially those in Germany, who argued an outright ban would expose them to massive financial penalties. The remaining 10% will be filled by conventional vehicles, including hybrids.
The Core of the Change: Why It Matters
The original proposal aimed for a complete phase-out of combustion engines by 2035, but automakers claimed electric vehicle (EV) demand isn’t yet high enough to meet such a strict target without significant economic repercussions. This compromise is a clear signal that policymakers are willing to adjust ambitious climate goals in response to industry pressure. This matters because it sets a precedent for future environmental regulations — suggesting that economic considerations will often outweigh purely ecological ones.
Industry Arguments and Concerns
European carmakers association (ACEA) argued that without flexibility, manufacturers face “multi-billion euro” penalties. They say the transition requires time for infrastructure development (charging points) and consumer incentives. The Commission also expects increased use of low-carbon steel, biofuels, and synthetic “e-fuels” to offset emissions from the remaining petrol/diesel vehicles.
However, critics warn this weakens the transition to EVs and leaves the EU vulnerable to competition from regions with less stringent rules. The UK, in particular, has been urged by groups like T&E to maintain its stricter zero-emission mandate, arguing that a firm commitment is essential for driving investment and innovation.
Divergent Reactions: Some Support, Some Opposition
Volkswagen welcomed the revised proposal, calling it “economically sound”. The company sees the flexibility as pragmatic, aligning with current market realities. In contrast, Volvo argued weakening long-term goals for short-term gain risks undermining Europe’s competitiveness, advocating for a consistent policy framework to drive investment in infrastructure and customer benefits.
UK Implications and Investment Risks
The UK’s planned ban on petrol and diesel sales by 2030 is now under scrutiny. Experts warn that weakening the mandate could damage investor confidence, jeopardizing billions already invested in EV infrastructure and supply chains. The precedent set by the EU could lead to a similar reduction in ambition, potentially slowing down the UK’s electric transition.
“Stable policy is crucial for companies to invest confidently in charging infrastructure,” says Colin Walker from the ECIU think tank. “The UK must stay the course to secure long-term jobs and innovation.”
Ultimately, the EU’s decision highlights the complex interplay between climate goals, economic realities, and industry lobbying. The shift away from an absolute ban reflects a pragmatic but potentially damaging compromise that could slow down the global transition to electric vehicles.
