EU to water down 2035 petrol and diesel car ban, senior MEP says

The European Union’s planned ban on the sale of new petrol and diesel cars from 2035 is set to be watered down, according to senior figures in the European Parliament, in a move that is likely to trigger fierce opposition from environmental campaigners.

The decision, which is expected to be outlined by the European Commission this week in Strasbourg, would mark a significant retreat from one of the central planks of the EU’s Green Deal. Campaigners have warned that any dilution of the ban would amount to a “gutting” of the bloc’s climate ambitions for transport.

Under existing legislation agreed in 2022, all new cars sold in the EU from 2035 must produce zero CO₂ emissions, effectively banning petrol, diesel and hybrid vehicles. However, Manfred Weber, president of the European People’s Party group, said the outright ban on combustion engines would be softened.

“The technology ban on combustion engines is off the table,” Weber told Germany’s Bild newspaper. “All engines currently manufactured in Germany can therefore continue to be produced and sold.”

His comments come after months of lobbying from national leaders and the automotive industry. Germany’s chancellor, Friedrich Merz, said last week that he supported a rethink, arguing that combustion-engine vehicles would still dominate global roads well beyond 2035.

“The reality is that there will still be millions of combustion engine-based cars around the world in 2035, 2040 and 2050,” Merz said.

Italy’s prime minister, Giorgia Meloni, alongside several major carmakers, has also pushed for changes that would allow hybrid vehicles to remain on sale. Weber suggested that under revised rules, manufacturers would instead be required to cut average fleet emissions by 90 per cent from 2035, rather than meeting a strict zero-emissions target.

This could open the door to a new generation of plug-in hybrid vehicles with extended electric range but a combustion engine as backup for long-distance journeys.

Environmental groups have reacted angrily to reports of a climbdown. Colin Walker, head of transport at the Energy and Climate Intelligence Unit, said weakening the rules would keep European households “stuck driving dirtier and more expensive petrol cars for longer” and slow the transition to electric vehicles.

Some manufacturers, including Volvo and Polestar, have also criticised calls to soften the ban, warning that policy uncertainty could hand an advantage to Chinese electric vehicle makers that are already scaling rapidly.

A spokesperson for the European Commission said the 2035 deadline was still under discussion, adding that commission president Ursula von der Leyen had acknowledged growing calls for “more flexibility” on CO₂ targets.

Alongside any changes to the ban, the commission is expected to propose new incentives to support the production and purchase of small, affordable electric vehicles made in Europe, as part of a broader effort to counter rising imports from China.

The debate highlights deep divisions within the EU over how fast the transition away from fossil-fuelled cars should happen, balancing climate targets against industrial competitiveness, jobs and consumer demand as the bloc charts its automotive future.

Paul Jones

Harvard alumni and former New York Times journalist. Editor of Business Matters for over 15 years, the UKs largest business magazine. I am also head of Capital Business Media’s automotive division working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.