14:50 03-02-2026

EU softens 2035 ICE ban to 90% emission reduction

A. Krivonosov

EU proposes 90% emission cut instead of ICE ban by 2035, allowing hybrids and ICE sales, potentially slowing EV market growth and raising CO₂ emissions.

The European Commission has proposed moving away from a de facto ban on internal combustion engine car sales after 2035, shifting the target to a 90% reduction in emissions compared to 2021 levels. According to Transport & Environment, this could significantly limit the growth of the electric vehicle market.

What's Changing in EU Climate Policy

Initially, the European Union planned to completely phase out ICE car sales by the mid-2030s. Now, under pressure from automakers, regulators are suggesting a more flexible approach that would allow up to 15% of sales to be hybrids and ICE vehicles. T&E warns that under certain scenarios, the share of non-electric models could reach 50%.

Reasons for the Softer Stance

The European Commission explains the changes as an effort to reduce the burden on the automotive industry. Brussels claims the new requirements would allow manufacturers to save about 2.1 billion euros and redirect funds toward developing new electric vehicles. However, T&E sees this as a step backward, noting that China is rapidly increasing its lead in mass-market battery electric vehicles.

Market and Environmental Consequences

Loosening the standards could result in the EU vehicle fleet's cumulative CO₂ emissions between 2025 and 2050 being 10% higher than under the original rules. Concerns also extend to the political process: the proposals will still be debated in the European Parliament and the Council of the EU, which could lead to further weakening of requirements.

The EU is no longer pushing for a strict phase-out of ICE vehicles by 2035, and this alters market prospects. The growth of electric vehicle market share now depends not only on regulators but also on automakers' willingness to invest in clean technologies without external pressure.

Caros Addington, Editor