EU moves to ease 2035 ban on internal combustion cars as auto industry
faces headwinds
[December 17, 2025] By
DAVID McHUGH
FRANKFURT, Germany (AP) — European officials on Tuesday moved to ease
their ban on sales of cars with internal combustion engines by 2035,
responding to pressure from governments and automakers who argued that
the industry needed more flexibility in finding ways to reduce emissions
of carbon dioxide and help achieve EU climate goals.
The proposal from the EU's executive commission would change provisions
of 2023 legislation requiring average emissions in new cars to equal
zero, or a 100% reduction from 2021 levels.
The new proposal would require a 90% emissions reduction. That means in
practical terms that most cars would be battery-only but would leave
room for some cars with internal combustion engines.
Automakers would have to compensate for the added emissions by using
European steel produced by methods that emit less carbon, and through
use of climate neutral e-fuels made from renewable electricity and
captured carbon dioxide and biofuels made from plants.
EU officials say changing the limit will not affect progress toward
making the 27-country bloc's economy climate neutral by 2050. That means
producing only as much carbon dioxide as can be absorbed by forests and
oceans or by abatement methods such as storing it underground. CO2 is
the primary greenhouse gas blamed by scientists for climate change.
The less stringent limit would leave room for automakers to continue
selling some plug-in hybrids, which have both electric and internal
combustion engines and can use the combustion engine to recharge the
battery without the need to find a charging station. The new limit
proposal was accompanied by measures to promote European battery
production and small electric cars.
The move, which needs approval from member governments and the EU
parliament, follows appeals from major carmakers and governments like
those of Germany and Italy that are host to major manufacturers and were
concerned about the impact on an industry that remains a major employer.
Industry representatives say that charging infrastructure is not being
built quickly enough to persuade consumers to switch from gasoline and
diesel models to electric cars. Other factors are also blamed for
slowing the increase in demand for electric cars such as the cancelation
of purchase subsidies by the German government and higher prices for
European-made electric cars. At the same time, the industry is under
pressure from increasing sales of inexpensive Chinese cars and a car
market that remains smaller than before the COVID-19 pandemic.
[to top of second column] |
A luxury Audi car is surrounded by exhaust gases as it is parked
with a running engine in front of the Chancellery in Berlin,
Germany, Wednesday, Nov. 20, 2019. (AP Photo/Michael Sohn, File)
 Sales of battery only cars in Europe
rose 26% for the first 10 months of this year compared to the same
period last year. Electric-only cars rose to 16% of new car sales.
The easing of the emissions ban would sends “a confusing signal” to
automakers and consumers, said environmental lobby Transport &
Environment. “This will divert investment away from electrification
at a time when European manufacturers urgently need to catch up with
Chinese EV-makers.”
Both the EU and the U.S. are moving more slowly in adopting electric
cars than China, where battery vehicles were 34% of the market in
the third quarter. Growth of battery cars in China has been fueled
by state assistance and ferocious competition among Chinese
automakers producing affordable vehicles.
Earlier this month, President Donald Trump announced a plan to
significantly reduce fuel economy requirements in the U.S. The
suggested standards, if finalized in 2026, would set the industry
fleetwide average for light-duty vehicles at 34.5 miles per gallon
in the 2031 model year.
Former President Joe Biden previously set much more stringent rules
that would have required automakers to meet about 50.4 miles per
gallon on average across their fleets that model year.
Industry applauded Trump’s rule change, which aligns with the
president’s oil and gas industry-forward agenda and other measures
prolonging sales of internal combustion engine vehicles, including
relaxing auto tailpipe emissions rules, repealing fines for
automakers not meeting federal mileage standards and eliminating EV
incentives.
The state of California had also proposed a ban on sales of new
internal combustion cars from 2035 but was blocked by Congress.
——
Associated Press writer Alexa St. John contributed from Detroit.
All contents © copyright 2025 Associated Press. All rights reserved
 |
