EU Considers Loosening 2035 Combustion Engine Ban Amid Industry Pushback

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EU Considers Loosening 2035 Combustion Engine Ban Amid Industry Pushback

European automakers and several member states are pressing the European Commission (EC) to revise its planned 2035 ban on new internal combustion engine (ICE) vehicles. The move comes as electric vehicle (EV) sales growth slows, competition from Chinese manufacturers intensifies, and concerns mount over potential job losses within the automotive sector.

Growing Opposition to the 2035 Deadline

Six EU countries – Bulgaria, Czechia, Hungary, Italy, Poland, and Slovakia – have formally requested the EC allow continued sales of hybrid vehicles and other technologies beyond 2035, arguing these can contribute to emissions reduction. They also advocate for incorporating low-carbon and renewable fuels into the bloc’s decarbonization strategy. This demand reflects a broader fear that an abrupt transition to EVs could undermine European competitiveness, potentially leading to industrial decline.

Germany’s Chancellor Friedrich Merz has specifically urged the Commission to permit plug-in hybrids, range-extender EVs, and highly efficient combustion engines past the 2035 cutoff. Italy is separately pushing for exemptions for vehicles running on biofuels. BMW, meanwhile, seeks allowances for plug-in hybrids and “sustainable” fuels while advocating for a shift toward evaluating full lifecycle emissions rather than just tailpipe emissions alone.

This debate highlights a critical tension: the EU’s commitment to climate goals versus the economic realities of its automotive industry. The 2035 ban was intended to accelerate EV adoption, but the feasibility of such a rapid shift is now being questioned.

Environmental Concerns and Alternative Proposals

Environmental groups strongly oppose any weakening of the 2035 mandate. Transport & Environment director Lucien Mathieu warns that exempting biofuels could increase CO2 emissions, divert biofuel supplies from sectors like shipping and aviation, and even encourage deforestation. This underscores the complexities of sustainable fuel sourcing and the potential for unintended consequences.

France offers a contrasting approach, urging the EU to support domestic battery production and proposing mandatory electrification of corporate fleets with vehicles manufactured within the bloc. President Emmanuel Macron explicitly linked maintaining the 2035 target to securing investment in European battery plants. Polestar CEO Michael Lohscheller bluntly called any delay “a bad idea,” warning that other nations will lead the EV transition if Europe falters.

Historical Parallels and Regulatory Uncertainty

Volvo head Håkan Samuelsson draws parallels to past industry resistance against safety standards like catalytic converters and seatbelts, arguing mandatory regulations are necessary to ensure widespread adoption of cleaner technologies. This suggests a history of automakers prioritizing short-term costs over long-term environmental benefits.

The EC is scheduled to release its proposed relief package on December 10, but the deep divisions and complexity of the issues may lead to delays. The package is expected to address not only the ICE ban but also incentives for greening corporate fleets, boosting EU-made components in battery packs, and easing interim CO2 targets. A new “E-car” category for European-made electric city cars is also under consideration.

Ultimately, the Commission’s proposal will face scrutiny from the European Council and Parliament, a process likely to extend well into next year. The outcome will determine whether the EU doubles down on its aggressive EV timeline or compromises to appease industry concerns.