BRUSSELS, December 17, 2025: The European Union is set to ease its planned 2035 ban on the sale of new combustion engine vehicles after sustained pressure from automakers and several member states, marking a significant policy adjustment in the bloc’s long-term climate agenda. The European Commission is preparing to revise the existing regulation that requires all new cars sold from 2035 to produce zero emissions. Under the proposed amendment, manufacturers would instead be required to achieve a 90 percent reduction in average fleet carbon dioxide emissions by 2035, rather than the previously mandated 100 percent cut. The move would allow continued production and sale of some hybrid and low-emission internal combustion vehicles that meet stringent efficiency and carbon-neutral fuel standards.
The decision follows months of lobbying by major car-producing nations, including Germany, Italy, and several Central European states, alongside strong advocacy from the automotive industry. Manufacturers had argued that the original target was no longer economically viable amid weaker electric vehicle demand, higher raw material costs, and rising competition from China and the United States. Industry associations representing European automakers had warned of production disruptions and potential job losses if the 2035 target were maintained without adjustment. The European Automobile Manufacturers’ Association (ACEA) and leading automakers such as Volkswagen, Stellantis, and BMW had publicly called for a recalibration of the emission reduction timeline.
They emphasized the need for regulatory flexibility as the sector transitions to electrification and invests heavily in battery supply chains, charging infrastructure, and software integration. The new proposal aims to balance the bloc’s decarbonization goals with the industrial competitiveness of its automotive sector, one of Europe’s largest employers and export contributors. Under the revised framework, the EU would maintain the long-term objective of achieving climate neutrality by 2050, but allow a more gradual phase-out of internal combustion technology. The changes would create room for vehicles powered by synthetic fuels, hydrogen combustion systems, and plug-in hybrids to remain in production beyond 2035, provided that their overall lifecycle emissions meet strict regulatory standards.
Automakers push for flexibility in emissions policy
The Commission is also expected to include provisions supporting small and medium-sized manufacturers to ensure a level playing field during the transition. The proposal will be subject to approval by the European Parliament and the Council of the European Union. Negotiations are expected to continue into early 2026, as member states debate the technical and economic implications of the revised targets. Several governments have already indicated their support for the adjustment, citing the need to safeguard industrial jobs and maintain Europe’s technological leadership in the automotive sector. Environmental groups, however, have expressed concern that the change could slow progress toward emission reduction goals and delay investments in fully electric mobility. The revised emissions plan forms part of a broader review of the EU’s climate and industrial policy, including potential updates to 2030 carbon reduction targets and measures to protect domestic industries from external competition.
The European Commission has stated that it remains committed to the Green Deal framework but is seeking a pragmatic approach that reflects current economic conditions and global market pressures. Analysts note that the policy shift is one of the most consequential revisions to the EU’s environmental legislation in recent years, signaling a recalibration of priorities between environmental objectives and economic resilience. The European automotive industry, which accounts for approximately 7 percent of the bloc’s gross domestic product and employs over 13 million people, has faced a series of structural challenges linked to electrification, supply chain disruptions, and global market competition. The updated proposal also seeks to encourage continued investment in research and development for low-emission technologies, sustainable materials, and carbon-neutral fuels.
Environmental advocates call for stronger oversight
It aims to preserve Europe’s position in the global automotive landscape while maintaining a trajectory consistent with the Paris Agreement’s long-term climate commitments. Once finalized, the legislation would replace the 2022 regulation that formally established the 2035 zero-emission mandate. If adopted by both the Parliament and the Council, the amended rule would take effect from 2026, giving manufacturers a nine-year window to align production strategies with the new targets. The European Commission’s decision represents a pivotal adjustment in the region’s environmental and industrial policy, reflecting both the scale of the automotive transition and the need to maintain competitiveness in a rapidly evolving global market.
It underscores a broader acknowledgment within the EU that achieving carbon neutrality requires balancing climate objectives with industrial realities. By recalibrating its targets, the Commission aims to sustain innovation and protect strategic industries while ensuring that Europe remains a hub for advanced automotive manufacturing. The updated stance also signals to global partners and investors that the EU intends to pursue its green transition through gradual, evidence-based implementation rather than abrupt regulatory shifts, aligning economic stability with environmental responsibility. – By EuroWire News Desk.