The European Union is at a critical crossroads as it contemplates the future of its landmark policy to ban the sale of new petrol and diesel cars by 2035. This ban, a cornerstone of the EU’s climate strategy to achieve carbon neutrality by 2050, is now under scrutiny from various political and industrial stakeholders. Amid calls from some quarters to soften or delay the ban, environmental groups have issued a stark warning: abandoning or weakening the 2035 combustion engine ban could jeopardize up to one million jobs in the green economy and derail Europe’s climate ambitions.
Background: The 2035 Combustion Engine Ban and Its Climate Goals
The EU’s plan to end sales of new combustion engine vehicles by 2035 was formally approved in 2022 after intense negotiations among its 27 member states. This policy mandates that from 2035 onwards, all new cars and light commercial vehicles sold in the EU must produce zero CO2 emissions, effectively phasing out petrol and diesel engines in favor of electric and other zero-emission alternatives.
The ban is part of a broader effort to reduce emissions from road transport, which accounts for about one-fifth of the EU’s CO2 output. The EU aims to cut emissions from cars by 55% and from vans by 50% by 2030 compared to 2021 levels, setting the stage for a fully carbon-neutral transport sector by 2050.
Despite broad political support, the ban has faced resistance from some member states and political groups who argue that the transition may be too rapid or economically disruptive. Germany, Italy, and others have pushed for allowances for synthetic fuels or plug-in hybrids, while the European People’s Party (EPP), the largest political group in the European Parliament, has proposed amendments to soften the ban or delay its enforcement.
Political and Economic Pressures Mounting Against the Ban
The EU’s largest political bloc, the EPP, has been actively seeking to revise the ban. They have suggested delaying the 2025 emission limits to 2027 or changing how carmakers’ compliance is measured, potentially weakening the policy’s impact. German lawmaker Jens Gieseke, a proponent of these reforms, has indicated that if the Parliament agrees, negotiations to repeal or amend the ban could begin soon.
These political maneuvers come amid broader economic concerns. European automakers face growing competition from Chinese electric vehicle manufacturers and high production costs within Europe. Additionally, the threat of U.S. tariffs—up to 25% on EU car exports—adds pressure on the industry, as the U.S. remains the EU’s largest auto export market, accounting for nearly a quarter of all EU car exports.
Some member states have also scaled back subsidies for electric vehicles (EVs), which could slow the growth of EV adoption. For instance, Germany ended subsidies for plug-in hybrids in 2022 and reduced incentives for battery electric vehicles in 2023. Other countries like the Netherlands and Norway have shifted from direct cash incentives to less generous tax rebates and other benefits. Rising electricity prices linked to the broader energy crisis further dampen demand for EVs.
Green Groups Warn of Job Losses and Climate Setbacks if Ban Is Weakened
In response to these pressures, environmental organizations have strongly urged the EU to stick to its 2035 combustion engine ban. They warn that diluting or delaying the ban risks undermining the green transition that is vital not only for climate goals but also for economic growth and job creation in emerging sectors.
“Weakening the 2035 combustion engine ban would put at risk up to one million jobs in the green economy,”
said a spokesperson from a leading European green advocacy group. They emphasized that maintaining the ban is essential to drive investment in clean technologies, stimulate innovation, and secure Europe’s leadership in the global EV market.
The green groups argue that a clear and firm policy framework is necessary to give industry and consumers the confidence to invest in zero-emission vehicles and infrastructure. They highlight that the EU has already made significant progress, with the EV fleet expanding from just over a million vehicles in 2019 to more than eight million in 2023. However, reaching the ambitious target of 30 million zero-emission cars by 2030 requires sustained policy support and regulatory clarity.
Industry and Political Responses: Balancing Climate Ambitions and Economic Realities
While some car manufacturers like Volkswagen have committed to phasing out combustion engines by 2033, ahead of the EU deadline, others remain cautious. The automotive industry is navigating a complex landscape of rising raw material costs, supply chain challenges, and evolving consumer preferences.
The EU’s decision to allow potential future use of synthetic fuels and plug-in hybrids reflects attempts to balance environmental objectives with economic and industrial realities. Countries such as Germany and Italy have pushed for these alternatives, arguing that they can help preserve jobs and support traditional automotive sectors.
At the same time, the EU has introduced provisions like the so-called “Ferrari Amendment” to ease requirements for low-volume luxury car manufacturers, granting them extended timelines to comply with emission targets. This move acknowledges the unique challenges faced by niche automakers while maintaining the overall trajectory toward zero emissions.
The Road Ahead: EU’s Climate and Industrial Strategy in Focus
The EU’s commitment to the 2035 combustion engine ban remains a litmus test for its broader climate and industrial strategies. Upholding the ban is seen as critical to meeting the bloc’s carbon neutrality goals and maintaining competitiveness in the rapidly evolving global automotive market.
However, the internal debate highlights the tension between environmental imperatives and economic concerns. The outcome of upcoming parliamentary amendments and negotiations will shape the future of Europe’s transport sector and its role in the global green transition.
As the EU weighs its options, green groups continue to press for unwavering adherence to the 2035 deadline, warning that any retreat could have far-reaching consequences for jobs, climate targets, and Europe’s leadership in clean mobility.
This evolving story underscores the complex interplay of politics, economics, and environmental policy shaping the future of transportation in Europe. The EU’s decision in the coming months will be pivotal in defining whether it can successfully navigate these challenges and deliver on its ambitious climate commitments.
