The European Union has significantly modified its ambitious climate policy by scaling back a proposed total ban on internal combustion engine vehicles. Originally mandating 100% zero-emission vehicle sales by 2035, the European Commission has now proposed a 90% target following intensive lobbying from automotive manufacturers, particularly German automakers.
According to the European Automobile Manufacturers’ Association (ACEA), market demand for electric vehicles remains insufficient to justify a complete phase-out of conventional vehicles. The association warned that maintaining the original mandate would expose manufacturers to potentially devastating financial penalties amounting to billions of euros.
Under the revised framework, the remaining 10% of vehicle sales may consist of traditional petrol or diesel cars alongside hybrid models. However, manufacturers must compensate for the emissions generated by these non-zero-emission vehicles through innovative environmental mechanisms. These include utilizing biofuels and synthetic e-fuels produced from captured carbon dioxide emissions.
Additionally, automakers will be required to incorporate low-carbon steel manufactured within the European Union into their vehicle production processes, representing a further effort to reduce the automotive industry’s overall carbon footprint.
Environmental advocacy groups have expressed strong opposition to the policy revision. Transport & Environment (T&E), a prominent green transport organization, has cautioned that this regulatory softening could critically undermine Europe’s transition to electric mobility. The group specifically warned the United Kingdom against following the EU’s example by weakening its own Zero Emission Vehicle Mandate.
Anna Krajinska, T&E UK’s director, emphasized that “The UK must stand firm. Our ZEV mandate is already driving jobs, investment and innovation into the UK. As major exporters we cannot compete unless we innovate, and global markets are going electric fast.” Critics argue that this policy shift leaves European automakers vulnerable in the increasingly competitive global electric vehicle market, particularly against manufacturers from China and the United States.