The European Union has voted to water down its planned 2035 ban on new petrol and diesel cars, easing emissions targets for vehicle manufacturers.
Members of the European Parliament Environment Committee voted on Friday in favour of lowering carbon dioxide reduction targets for 2035 from 90 per cent against 2021 levels to 87.5 per cent for cars and just 80 per cent for vans. The original European plan had required all combustion engine vehicles to be eliminated by that date.
The revised targets mean a small proportion of hybrid, petrol and diesel vehicles will be permitted to remain on sale beyond the middle of the next decade, rather than enforcing a total ban on fossil-fuelled models in nine years.
The decision in Brussels piles fresh pressure onto British political figures, including Andy Burnham, to follow suit and slash electric vehicle sales targets in the United Kingdom.
Lower emissions targets for combustion engines
Under the revised proposals, European carmakers will be permitted to sell combustion-engined vehicles beyond 2035 rather than facing a complete market cut-off. The Environment Committee, formally known as the ENVI committee, is responsible for environmental policy, greenhouse gas reductions and climate legislation within the European Parliament.
The European Union had initially set out to require a 100 per cent reduction in fleet carbon emissions for new passenger vehicles by 2035 as part of its climate commitments. Emissions targets in the bloc are calculated against manufacturer fleet averages using 2021 performance levels as a baseline, meaning the lowered thresholds will allow manufacturers to continue registering internal combustion engine models.
The committee also backed super-credits for manufacturers producing small electric cars inside Europe. The incentive is designed to expand the market for more affordable electric models while strengthening the European automotive industry against international competition.
Massimiliano Salini, vice-chair of the ENVI committee, described the vote as a turning point for the European automotive industry. He said registering combustion engine cars without compensation obligations would remain possible, protecting technological freedom and restoring prospects for the entire supply chain.
Lobbying pressure from European carmakers
The shift by European lawmakers follows intense lobbying from vehicle manufacturers who urged Brussels to relax its targets and allow more profitable combustion-engined models to remain on the market. European car firms have faced mounting commercial pressure, driven by high battery expenses and growing competition from cheaper Chinese rivals.
Automakers across the continent have pointed out that producing battery electric vehicles involves higher component costs than conventional petrol or diesel assembly. Slower consumer adoption and the arrival of lower-priced vehicles from Chinese manufacturers have added financial strain across European manufacturing networks.
Major manufacturers welcomed the committee decision, with Japanese carmaker Toyota praising the move alongside the European Automobile Manufacturers' Association (ACEA). The Brussels-based trade body commended what it described as a pragmatic approach to regulation.
If the European Union formally adopts the proposals into law, drivers who are unable or unwilling to switch to fully electric vehicles will retain a wider choice of showroom models well into the 2030s.
Review of British electric vehicle mandates
The vote in Brussels arrives as the British government considers easing its own Zero Emission Vehicle (ZEV) Mandate, which governs the UK pathway away from internal combustion engines. Any further dilution of electric car sales rules across Europe is likely to increase pressure on the Labour government to take similar action and allow motorists to buy combustion-engined cars for longer in Britain.
The British mandate requires manufacturers to sell an increasing proportion of fully electric cars each year, rising from 33 per cent this year to 80 per cent by 2030. The statutory system sets annual quotas for vehicle registrations, requiring car companies to meet escalating targets or face regulatory penalties.
Following pressure from the British automotive industry, ministers launched a consultation, which closed in October, exploring a reduction in the pure electric vehicle sales target from 80 per cent at the end of the decade to as little as 50 per cent.
Proposed role for hybrid cars
While the planned UK ban on new pure petrol and diesel cars from 2030 remains in place, the recently concluded consultation proposes allowing manufacturers to sell a greater proportion of hybrid vehicles. Should the British government reduce the pure electric requirement to 50 per cent, hybrids could account for the remaining half of all new-car registrations.
Such a change would give carmakers greater flexibility until 2035 before ending sales of new hybrid models along with petrols and diesels five years earlier. The Department for Transport has specifically proposed reconsidering the role of plug-in hybrid electric vehicles within the legislation, as well as examining how motorists can be encouraged to use them in electric mode more frequently.
Plug-in hybrid electric vehicles (PHEVs) combine a conventional petrol or diesel engine with an electric motor and a rechargeable battery that can be plugged into an external power source. Unlike fully electric cars that produce zero tailpipe emissions, plug-in hybrids switch between battery power and fossil fuels, which has led policymakers to focus on how regularly drivers charge them.
Transport Secretary Heidi Alexander defended the review, indicating that the long-term direction had not altered. She said: 'The end goal hasn't changed - but we need to take business with us on the journey, and that's exactly what we're doing today, by making sure industry has the chance to shape how we get there.'
Britain is expected to learn the outcome of the review soon, with ministers promising a response no later than early 2027.
Financial costs facing vehicle manufacturers
Carmakers operating in Britain have long pushed for reform through their industry lobby group, the Society of Motor Manufacturers and Traders (SMMT). The SMMT serves as the principal trade body for the UK motor industry, representing vehicle manufacturers, component suppliers and importers across the country.
The SMMT argues that recent growth in electric vehicle sales has come at an unsustainable cost, with manufacturers spending billions of pounds on discounts and incentives to meet increasingly demanding sales quotas. The trade body said that level of financial support cannot continue indefinitely.
