For years, the message coming out of Brussels was clear and uncompromising: internal combustion engines would be phased out completely by 2035. Petrol and diesel were on borrowed time, and the future was fully electric.
Now, that certainty is fading.
The European Union has officially stepped back from its plan to impose a de facto ban on combustion-engine cars from 2035, signaling a major shift in how Europe sees the road ahead. Instead of forcing a clean break, the EU is moving toward a more flexible and pragmatic approach—one that keeps combustion engines in the picture, while tightening the rules around emissions.
Under the newly unveiled proposal from the European Commission, the requirement for all new cars and vans sold after 2035 to be fully zero-emission has been replaced with a 90 percent reduction in CO₂ emissions compared to 2021 levels. It’s a subtle change on paper, but a significant one in practice—and it marks the biggest retreat from Europe’s green transport policies in recent years.
The proposal still needs approval from EU governments and the European Parliament, but the direction is unmistakable: Europe is no longer betting everything on a single path to electrification.
From A Hard Ban To A More Realistic Middle Ground
What does this actually mean for cars on the road?
Simply put, combustion engines are no longer being written off by law. Instead of banning petrol and diesel outright, the EU is allowing certain non-electric vehicles to continue beyond 2035, as long as manufacturers meet strict overall emissions targets.
This keeps the door open for:
Hybrid models
Plug-in hybrids
Range-extended electric vehicles (REEVs)
The remaining emissions—around 10 percent—would need to be offset using alternative solutions such as low-carbon steel produced in Europe, synthetic e-fuels, or non-food biofuels made from agricultural waste and used cooking oil.
In other words, Europe is shifting its focus away from banning technologies and toward reducing emissions in the real world, regardless of how that reduction is achieved.
Why Europe Hit The Brakes
This change didn’t come out of nowhere. For months, European automakers—especially in Germany and Italy—have been warning that the original 2035 target was becoming increasingly difficult to meet.
Electric vehicle demand has softened, costs remain high, and competition has intensified. European brands are under pressure from Tesla, while Chinese EV manufacturers continue to gain ground with aggressive pricing and rapid development cycles.
German carmakers, in particular, are feeling squeezed. They are losing market share in China to local rivals, while facing growing competition at home from imported Chinese EVs. Even EU tariffs on Chinese-built electric cars have done little to ease the pressure.
The global picture hasn’t helped either. Just days before the EU announcement, Ford revealed a $19.5 billion write-down, stepping back from several EV programs as demand weakened and policy priorities shifted in the United States. Analysts now describe the industry as entering a reset phase, rather than following a smooth, predictable path toward full electrification.
Volkswagen welcomed the EU’s revised approach, calling it pragmatic and more in line with market realities, while also praising greater flexibility in interim targets and additional support for smaller electric vehicles.
A Slower, Staged Transition
Rather than a sudden cutoff, the new framework introduces a more gradual transition:
Between 2030 and 2032, automakers must cut car CO₂ emissions by 55 percent compared to 2021
For vans, the 2030 target has been eased from 50 percent to 40 percent
The European Commission also plans to push harder on corporate fleets, which account for around 60 percent of new car sales in Europe, and is considering a new regulatory category for small electric vehicles. These smaller EVs could benefit from lighter rules and additional emissions credits if they are built within the EU.
A Divisive Decision
Not everyone is convinced this is the right move.
Electric vehicle manufacturers and climate advocacy groups argue that softening the targets risks undermining long-term investment and slowing Europe’s momentum—especially as China accelerates its transition.
Polestar CEO Michael Lohscheller warned that moving away from a clear zero-emissions target could hurt both the climate and Europe’s competitiveness. Clean transport group T&E went even further, arguing that clinging to combustion engines won’t help European automakers regain their former strength.
Even within the traditional auto industry, concerns remain. Germany’s VDA industry body said the proposal doesn’t go far enough to support manufacturers, while adding new obligations around green materials and renewable fuels.
What This Really Signals
This is not Europe abandoning electrification. Instead, it’s an acknowledgment that the transition will be messier, slower, and more complex than initially planned.
Internal combustion engines aren’t being “saved” in the classic sense—but they’re not being erased either. What lies ahead is a long period of coexistence, where electric, hybrid, and combustion technologies share the road, and where emissions reduction takes priority over ideology.
For automakers, this provides breathing room. For enthusiasts, it means engines won’t disappear overnight. And for Europe, it marks a shift from rigid deadlines to a more adaptable strategy—one shaped as much by economic reality as by environmental ambition.
The road to cleaner mobility is still moving forward. It just won’t be as straight as once promised.
