The European Union has decided to revise its planned restrictions on combustion engine vehicles, easing its previously proposed 2035 target amid slowing electric vehicle (EV) adoption and renewed investment by automakers in combustion and hybrid technologies.
Under the original plan, the EU aimed to reduce carbon dioxide emissions from new vehicles’ tailpipes by 100% compared with 2021 levels, effectively requiring all new cars sold after 2035 to be fully electric. The revised approach lowers that target to a 90% reduction, allowing certain vehicles with combustion engines to remain on the market beyond 2035.
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The change means hybrids, plug-in hybrids and range-extended electric vehicles would still be permitted, provided manufacturers meet fleet-wide emissions targets. The remaining 10% of emissions would need to be offset through measures such as the use of lower-carbon materials, including steel produced with reduced emissions, or through synthetic e-fuels and biofuels.
Speculation that the EU might soften its stance has circulated for months. Earlier this week, the head of the European People’s Party (EPP) confirmed the shift in comments to German newspaper Bild, saying that from 2035 onward, a 90% reduction in CO2 emissions would apply to manufacturers’ fleet targets rather than a full phase-out. He added that there would also be no 100% emissions reduction requirement in 2040, effectively removing a blanket ban on combustion engines.
As part of the revised framework, automakers will be given a three-year window from 2030 to 2032 to cut CO2 emissions from new cars by 55% compared with 2021 levels. For vans, the reduction target over the same period will be lowered from 50% to 40%.
The decision follows sustained pressure from parts of the European automotive industry and several member states, including Germany and Italy. Major manufacturers such as Volkswagen Group and Stellantis have previously warned that the original targets would be difficult to achieve given market conditions and the pace of EV adoption.
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EU officials said the revised targets are intended to balance climate objectives with industrial competitiveness and technological flexibility, as the bloc reassesses its path toward decarbonising road transport.