The European Commission has recently revised its stringent regulations regarding the sale of new petrol and diesel vehicles. This significant adjustment will now permit a limited number of internal combustion engine cars to be sold after the original 2035 deadline. Driven by substantial lobbying from the automotive industry, particularly German manufacturers, the policy has shifted from a complete ban to a requirement for 90% of new vehicles to be zero-emission.
This revised legislation allows the remaining 10% of new car registrations from 2035 onwards to utilize conventional petrol or diesel engines, or hybrid systems. This concession addresses concerns raised by the European Automobile Manufacturers' Association (ACEA), which had argued that current consumer demand for fully electric vehicles (EVs) is insufficient for a 100% transition. Without these modifications, manufacturers had faced the prospect of incurring billions of euros in financial penalties for non-compliance.
In addition to the adjusted sales quota, the Commission's updated framework mandates that carmakers integrate steel produced with lower carbon emissions within the EU into their manufacturing processes. Furthermore, the plan anticipates that biofuels and synthetic e-fuels will play a vital role in offsetting the environmental impact of remaining petrol and diesel vehicles. This strategy indicates a more balanced approach to decarbonisation, moving beyond exclusive reliance on full electrification.
The impetus for this policy shift highlights the complex relationship between environmental objectives and industrial realities. Carmakers have consistently emphasized the immense investment required for the transition to electric powertrains and the challenges in scaling production to meet a 100% zero-emission mandate. The threat of significant financial repercussions for failing to comply appears to have been a decisive factor in prompting the Commission to amend its original, more ambitious timeline.
However, the decision has faced criticism from environmental groups like Transport & Environment (T&E). There are palpable concerns that this dilution of the zero-emission target could decelerate the overall pace of EV adoption across the continent. Critics argue that allowing continued sales of combustion engines risks the EU falling behind in global automotive innovation and competitiveness. T&E UK's director, Anna Krajinska, issued a stark warning, stating, "The UK must stand firm. Our ZEV mandate is already driving jobs, investment and innovation into the UK."
This divergence in approach also raises questions about the EU's comparative standing with other nations, including the UK, which has its own phase-out plans for conventional vehicles. The implications of the EU's revised policy are far-reaching, potentially impacting investment decisions and consumer choices within the automotive industry's transformation. While the move offers manufacturers flexibility, it simultaneously ignites a debate about whether it represents a pragmatic compromise or a detrimental step backward in addressing climate change.