Brussels is expected to rewrite the EU’s flagship 2035 “zero CO2” rule for new cars and vans, after pressure from Germany, Italy and leading manufacturers who say the market is not moving quickly enough towards full electrification.
The European Commission is expected on Tuesday, 16 December, to unveil an automotive package that would ease the European Union’s effective ban on sales of new combustion-engine cars and vans from 2035, according to EU officials and industry sources.
The revision would reopen a law agreed in 2023 under the EU’s “Fit for 55” agenda, which set a fleet-wide target of 100 per cent CO2 emissions reduction for new passenger cars and light commercial vehicles by 2035 compared with 2021 levels. Under the current framework, manufacturers face intermediate targets for 2030 of a 55 per cent cut for cars and a 50 per cent cut for vans.
Sources cited by Reuters said the Commission’s forthcoming proposal could either push the 2035 deadline back by five years or soften it without committing to a fixed alternative date. The shift comes after months of lobbying by traditional carmakers, alongside calls from Berlin and Rome for a more “technology-open” approach.
Manfred Weber, president of the European People’s Party — the largest political group in the European Parliament — said last week the Commission would bring forward a proposal to abolish the combustion-engine ban, describing it as an industrial policy error. Weber had also indicated the ban was “off the table”, reflecting growing political momentum behind a rewrite.
The industry’s argument is that the EU’s regulatory timetable is out of step with consumer demand and infrastructure rollout. European manufacturers have increased their electric vehicle line-ups but say take-up has lagged as buyers remain wary of higher purchase prices and uneven charging coverage, particularly outside major urban areas. They also point to intensifying competition from Chinese brands and the scale advantages enjoyed by US manufacturers.
At the same time, meeting EU fleet CO2 targets increasingly requires higher sales of battery-electric vehicles. Manufacturers that fall short risk fines, though they can mitigate exposure through pooling arrangements and by accelerating zero-emission sales. The Commission has already offered limited flexibility: in March it gave carmakers three years, rather than one, to comply with the 2025 target.
Carmakers want the EU to recognise additional routes to compliance. These include continuing sales of plug-in hybrids, so-called range-extender EVs, and combustion models running on fuels they describe as “CO2-neutral”. The fuels under discussion include synthetic e-fuels and advanced biofuels made from residues and waste streams.
Commission President Ursula von der Leyen said in October that she was open to the use of e-fuels and “advanced biofuels”, a signal that the executive was prepared to widen the policy toolkit beyond battery electrification alone. Clean Energy Wire reported earlier this month that the Commission’s transport commissioner had said the review of car standards would cover “all technological developments”, including low-emission fuels and advanced biofuels.
The prospect of changing course has divided the sector. Electric vehicle manufacturers and charging providers argue that weakening the 2035 target would undermine investment decisions and make it harder for Europe to build scale in batteries, charging hardware and supply chains. Volvo Cars has urged the EU to resist pressure to scrap the target, warning that sudden rule changes damage trust for companies that have already committed capital to electrification.
Industry bodies representing traditional manufacturers take the opposite view. The European Automobile Manufacturers’ Association said in November that the pace of battery-electric market growth indicates the 2030 and 2035 CO2 targets are no longer achievable on current trends, calling for a “smarter regulatory path” and measures that stimulate demand.
Alongside any change to the 2035 rule, the Commission is expected to set out proposals aimed at lifting EV uptake in corporate fleets. Company cars account for a large share of new registrations across Europe, making fleet procurement a potential lever for accelerating sales. Commission may outline steps to boost the share of EVs in corporate fleets and explore a new category for smaller electric vehicles, potentially linked to lower taxes and additional regulatory credits.
Environmental campaign groups are urging the EU to keep the 2035 target intact. Transport & Environment has argued that biofuels are constrained by supply, contested on lifecycle emissions, and likely to be costly if scaled for road transport. The group’s position is that a clear end-date is needed to drive investment and remove uncertainty.
The Commission’s announcement will not settle the argument. Any substantive change to the 2035 framework is likely to trigger a difficult negotiation across EU institutions and member states, with a renewed clash between industrial priorities and the bloc’s climate obligations.
