European Union set to drop 2035 combustion engine ban

The European Commission is proposing reversing a ban on new combustion-engine vehicles from 2035 after pressure from car makers.

By AAP & CBA Newsroom

17 December 2025

Cars drive along frozen trees in the Taunus region near Frankfurt, Germany. Picture: AAP

The European Commission is considering easing its 2035 ban on new combustion-engine cars, proposing a compromise that would allow limited sales of non-electric vehicles.

This shift follows mounting pressure from Germany, Italy, and major car manufacturers concerned about competitiveness against Tesla and Chinese EV makers.

Under the current rules, all new cars and vans sold from 2035 must be zero-emission. The new proposal, however, would reduce the target to a 90 per cent cut in CO₂ emissions from 2021 levels, rather than a full 100 per cent ban.

To meet this revised goal, car makers could offset residual emissions by using low-carbon steel produced in the EU and synthetic e-fuels or biofuels derived from waste materials, such as agricultural by-products and used cooking oil.

The plan also introduces a three-year transition period (2030–2032), during which car manufacturers must cut CO₂ emissions from cars by 55 per cent compared to 2021 levels, while the target for vans would ease from 50 per cent to 40 per cent.

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