The European Union will relax its 2035 zero-emissions mandate for new cars, responding to growing pressure from the automotive industry. Executives and insiders have long argued that the original target—phasing out all new combustion-engine vehicles by 2035—is no longer feasible. Under current legislation, manufacturers must transition entirely to zero-emission vehicles within the next decade and a half.
The European Commission will unveil its updated automotive package later Tuesday, ahead of debates in the European Parliament. According to sources, the Commission plans to reduce the target from 100 per cent zero-emission vehicles to 90 per cent, allowing the continued production of plug-in hybrids and, in some cases, combustion-engine models beyond 2035.
Offsetting non-zero-emission vehicles
Manufacturers must offset the remaining 10 per cent of emissions from vehicles with environmentally friendly measures in production, such as using green steel or biofuels, The Guardian reported. The revised rules allow a mix of plug-in hybrids, mild hybrids, range-extender models, and conventional engines alongside full electric and hydrogen vehicles.
Industry observers say the adjustment reflects concerns that the original ban could disrupt supply chains and the broader European economy. Sources familiar with the discussions say the change balances climate ambitions with the practical realities of automotive production, echoing debates that have been ongoing since the EU first signaled its 2035 target in 2021.
European automakers face rising pressure
European automakers face a challenging landscape. Competition from Chinese EV manufacturers, who are rapidly expanding production and securing key battery supply chains, adds pressure. The relaxation of the 2035 rules gives European companies more room to adapt, invest in low-emission technologies, and maintain competitiveness while transitioning to zero-emission vehicles.
The revised rules represent a significant shift in EU automotive policy, signaling a more gradual transition to zero-emission vehicles while helping European manufacturers stay competitive in a changing global market.
