Europe will delay its full ban on new combustion engine vehicles, opting instead for a compromise that allows continued sales of hybrid cars beyond 2035. The European Commission announced the shift following pressure from automakers, who argued electric vehicle (EV) adoption was slower than anticipated and charging infrastructure remains inadequate.
The Shift in Policy
The previous regulation aimed to mandate that all new light vehicles sold after 2035 would produce zero tailpipe carbon emissions. Under the revised proposal, automakers can continue selling internal combustion engine (ICE) vehicles—including hybrids—as long as fleet-wide emissions targets are met. Financial penalties will still apply if manufacturers exceed those limits. The Commission argues that offsetting emissions through synthetic fuels, “green steel,” and incentivizing EU-produced small EVs will keep the transport sector on track for carbon neutrality by 2050.
Why This Matters
This policy reversal is significant because it reflects the real-world challenges of transitioning to EVs. While EV sales are rising, they still lag behind hybrid adoption, which remains strong at 34.6% of new car sales in the EU as of late 2023. The delay acknowledges that infrastructure and consumer confidence are not yet fully aligned with a complete ICE ban. However, critics argue this compromise undermines climate goals and Europe’s competitive edge in the global EV market.
Industry Reactions
Automakers have responded with mixed reactions. Volkswagen praised the pragmatic approach, while Stellantis criticized the changes as insufficient, particularly for light commercial vehicles. Ford had previously lobbied for including hybrids in the 2035 target after reporting losses on EV sales. Polestar CEO Michael Lohscheller sharply criticized the backtrack, warning it would extend reliance on outdated technology and weaken Europe’s position in the electrification race.
Global Context
The EU’s decision contrasts with stricter regulations elsewhere. Australia, for example, has implemented its own New Vehicle Emissions Standard (NVES) but lacks a firm 2035 zero-emission target. The ACT is the only Australian jurisdiction with such a law. The EU’s delay suggests a more cautious approach to decarbonizing the automotive sector, prioritizing economic realities over immediate environmental targets.
The revised regulations will be presented to the European Parliament in 2026. The Commission hopes for a quick agreement to provide stability for the industry. The changes underscore the complex interplay between climate policy, economic pressures, and technological feasibility in the automotive sector.
