EU Changes Plans to Ban Internal Combustion Engines
The European Union is making significant adjustments to its strict environmental plans for the automotive industry. Instead of a complete ban on the sale of new cars with internal combustion engines from 2035, as previously planned, a more flexible system is now being introduced. The main goal of reducing CO₂ emissions remains, but the path to achieving it is changing.
The key changes of the new regulatory package presented by the European Commission can be summarized as follows:
A New Reality for Automakers and Consumers
In practice, this means that after 2035, new cars with gasoline and diesel engines, mild and plug-in hybrids, as well as vehicles with range-extender engines, can continue to appear on European roads alongside electric vehicles. There is one condition — automakers must balance overall emissions using approved compensation mechanisms.
The full package of automotive regulations, officially announced on December 16, will be presented to the European Parliament and the Council in 2026 for formal consideration and approval.
Furthermore, the requirements for 2030 are also being softened. Emission targets will now be averaged over the period from 2030 to 2032, giving manufacturers additional flexibility.
Automakers will also benefit from the softened 2030 requirements, as emission targets will now be averaged over the period from 2030 to 2032, offering manufacturers additional flexibility, similar to the approach adopted for the 2025 targets.
Industry Pressure and Strategic Dialogue
These changes are not accidental. They are the result of prolonged pressure from automotive industry leaders such as BMW, Volkswagen, Mercedes, Renault, and Stellantis. Even Ford CEO Jim Farley warned the EU that the previous targets were too strict. It seems the voice of big business has been heard.
This step came after a year of high-level meetings between EU officials and the automotive industry, as part of a broader “strategic dialogue” aimed at rebuilding trust after years of tension, much of which stemmed from the aftermath of the Volkswagen diesel emissions scandal.
Electrification Continues, but with Nuances
It is important to note that the EU is not abandoning its course towards electrification. The Commission is strengthening incentives for small, affordable electric vehicles produced in Europe, granting them “super-credits” that have a stronger impact on manufacturers’ compliance with emission standards. A new M1E vehicle category will also be created to simplify the regulation of electric vehicles shorter than 4.2 meters.
To provide automakers with more stability, the Commission is also proposing a 10-year freeze on new vehicle regulations. This pause could significantly reduce compliance complexity and offer clearer long-term planning for product cycles.
In short, the EU is not turning back, but is trading its former rigidity for greater realism. Internal combustion engines will not die after 2035; they will simply be treated more cautiously than in the past.
Alongside the policy update, the Commission is deploying additional support for European battery production, investments in software-defined vehicles, and new local content requirements for electric vehicles. These steps are aimed at boosting competitiveness, especially in the face of growing pressure from Chinese automakers.
The revision of plans demonstrates the complex balance between environmental ambitions and economic and technological reality. The flexibility now shown by Brussels may prove key to maintaining the competitiveness of the European auto industry globally, without abandoning long-term decarbonization goals. It also leaves room for technological innovation in fuels and materials, which could benefit the broader economy. The final decision lies with the Parliament and the Council, but the direction of change has been set.