The European Commission has revised its plan to phase out new petrol and diesel cars by 2035, lowering the required share of zero-emission vehicles amid pressure from carmakers and concerns about market readiness.
Revised Targets for New Car Sales
Under existing rules, all new vehicles sold in the European Union from 2035 were required to be zero emission. The Commission’s updated proposal would instead require 90% of new cars sold from that date to meet the zero-emission standard, with the remaining 10% allowed to include petrol, diesel, and hybrid vehicles.
The change follows lobbying by car manufacturers, particularly in Germany, who argued that current demand for electric vehicles is insufficient to meet the original target.
Industry Pressure and Market Concerns
The European Automobile Manufacturers’ Association, ACEA, said that without greater flexibility, manufacturers could face multi-billion-euro penalties. Ahead of the announcement, ACEA director general Sigrid de Vries said demand for electric cars remains too low and warned that 2030 deadlines are approaching quickly.
She said time is needed to expand charging infrastructure and implement fiscal and purchase incentives to support consumer adoption, adding that manufacturers require breathing space to sustain jobs, innovation, and investment.
Compensatory Measures and Emissions Offsets
The Commission said carmakers will be expected to use low-carbon steel produced in the EU. It also anticipates increased use of biofuels and e-fuels, which are produced using captured carbon dioxide, to offset additional emissions from petrol and diesel vehicles.
Opposition From Environmental Groups
Environmental groups warned that the revised target could weaken the transition to electric vehicles and leave the EU less competitive globally. Transport and Environment said the UK should not mirror the EU’s move by softening its own Zero Emission Vehicles mandate.
T&E UK director Anna Krajinska said the mandate is already supporting jobs, investment, and innovation, adding that global markets are moving quickly toward electric vehicles.
UK Policy Debate and Industry Views
Carmakers in the UK have previously called for stronger incentives to encourage EV adoption ahead of the government’s planned 2030 ban on new petrol and diesel cars. Analysts said stable policy is critical to maintaining investment confidence.
Colin Walker of the Energy and Climate Intelligence Unit said consistent government policy has previously helped attract EV manufacturing investment, citing Nissan’s electric vehicle production in Sunderland.
Diverging Responses From Carmakers
Volvo said it has built a full electric vehicle portfolio in less than a decade and argued that weakening long-term commitments risks harming Europe’s competitiveness. The company said clear policy and infrastructure investment are needed to deliver benefits for consumers and industry.
Volkswagen welcomed the Commission’s draft proposal, calling it economically sound. The carmaker said added flexibility for 2030 targets and support for small electric vehicles align better with current market conditions, and that allowing combustion engines with emissions compensation is pragmatic.
Octopus Electric Vehicles chief executive Fiona Howarth said easing UK targets in response to EU changes would send a damaging signal to investors and manufacturers who have already committed significant resources to the transition.
Featured image credits: Flickr
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