EU's Combustion Engine Ban Faces Setback Amid Industry Pressure

In a significant shift in policy, the European Commission has proposed to amend its ambitious plan to ban the sale of new combustion engine cars in the European Union by 2035. Originally approved in 2023, the ban will now only apply to 90% of vehicles, allowing for a 10% allowance for plug-in hybrid vehicles and those with internal combustion engines. This decision has sparked concerns regarding its implications for climate change efforts and the EU’s commitment to achieving carbon neutrality by 2050.

The announcement, made on December 17, 2025, reflects growing pressures from the automotive industry, which has been grappling with high energy costs and competitive challenges from global markets, particularly from China. Ursula von der Leyen, the President of the European Commission, emphasized that Europe remains committed to leading the global clean transition, despite this setback. The new regulations will require car manufacturers to achieve a 90% reduction in tailpipe emissions, with the remaining emissions needing to be offset through low-carbon steel or alternative fuels such as e-fuels and biofuels.

The proposal is expected to receive backing from European lawmakers, with influential figures like Manfred Weber, president of the European People’s Party (EPP), indicating support for the revised plan. Weber described the original ban as a “serious industrial policy mistake,” suggesting that the EU’s approach to automotive regulations needs to be more flexible to support the industry.

This policy shift raises alarm among environmental advocates, who argue that it undermines the EU’s green credentials at a time when the bloc is legally obligated to reduce its greenhouse gas emissions significantly. Cars and vans account for approximately 15% of the EU’s total emissions, making the transition away from fossil fuel-powered vehicles a cornerstone of the EU’s climate strategy.

The automotive industry had initially embraced the transition to electric vehicles (EVs) when stringent regulations were proposed. However, manufacturers are now facing fierce competition and slower-than-expected consumer adoption of EVs, compounded by inconsistent charging infrastructure across the continent. Notably, Ford’s recent decision to scale back its EV plans, resulting in a $19.5 billion charge against earnings, underscores the challenges faced by automakers in adapting to the evolving regulatory landscape.

Environmental policy experts, such as Tim Dexter from the advocacy group Transport & Environment, have voiced concerns that diluting the ban could have “significant consequences for the climate.” The rollback of long-term commitments could send a troubling signal about the EU’s resolve to implement effective measures for reducing emissions.

The complexities of measuring a vehicle’s overall environmental impact further complicate the discussion. While gas-powered cars may be cleaner to manufacture, their lifetime emissions are significantly higher compared to EVs, which, despite being more carbon-intensive to produce, offer substantial reductions in emissions over their operational life.

As the EU navigates the balance between supporting its automotive industry and fulfilling its climate commitments, the revised combustion engine ban raises critical questions about the future of sustainable transportation in Europe.