The European Union is set to abandon its plan to ban the sale of new petrol and diesel cars by 2035, replacing it with a less ambitious target of a 90 % reduction in emissions. This shift is part of a broader reform package aimed at supporting the continent’s struggling automotive industry, but it has raised concerns among environmentalists that it could undermine the EU’s green agenda and deter investment in electrification.
The EU’s automotive sector faces significant challenges, including fierce competition from China and a slower‑than‑expected transition to electric vehicles. Carmakers have been lobbying for a relaxation of the ban, citing high upfront costs and inadequate charging infrastructure as major obstacles. According to the European Automobile Manufacturers Association (ACEA), only 16 % of new vehicles sold in the first nine months of 2025 were electric.
The European Commission is expected to propose the new measures on Tuesday. The proposal will allow the sale of hybrid vehicles with rechargeable batteries or range extenders after 2035. Countries such as Germany and Italy support the move, while France, the Nordic nations, and Spain—who have heavily invested in the electric‑vehicle transition—oppose it.
Environmentalists argue that the new proposal may not go far enough to cut emissions, noting that plug‑in hybrids can pollute almost as much as petrol cars. Others contend that the compromise could help move the industry forward and reduce consumer confusion. The EU’s transport sector accounts for around 20 % of the continent’s greenhouse‑gas emissions, with cars responsible for 61 % of that total.
In addition to the emission‑reduction target, the Commission is expected to announce further measures to support the automotive industry, including plans to “green” company fleets and encourage the production of small, affordable electric vehicles. The EU aims to reduce its greenhouse‑gas emissions by at least 55 % by 2030, and the transport sector will play a critical role in achieving this goal. The proposed reforms will be closely watched by industry leaders, environmentalists, and consumers as the EU strives to balance emission reductions with the need to sustain its automotive sector.
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