The EU Is Officially Dropping Its 2035 Combustion Engine Ban

Under the European Union’s (EU) proposed plan, new combustion engines would have effectively been banned after 2035. But with EV enthusiasm cooling and more automakers reinvesting in combustion technology, the EU has officially decided to loosen its restrictions.

According to Reuters, the EU has revised its ambitious 2035 goal and plans to ease restrictions on combustion engines. The original proposition aimed to reduce CO2 emissions from vehicles’ tailpipes by 100 percent compared to 2021 numbers by forcing automakers to go fully electric.

Now, officials say the goal is to cut CO2 emissions by 90 percent compared to 2021. That means hybrids, plug-in hybrids, and range-extended EVs will be allowed to remain on sale past 2035. The other 10 percent of emissions will need to be offset with things like lower-carbon steel produced in the EU, or synthetic e-fuels and biofuels.

It’s long been rumored that the EU would lift restrictions. Earlier this month, it was reported that the EU was considering reversing the decision. And earlier this week, the head of the European People’s Party (EPP), confirmed the news to the German newspaper Bild, saying:

‘For new registrations from 2035 onwards, a 90-percent reduction in CO2 emissions will now be mandatory for car manufacturers’ fleet targets, instead of 100 percent. There will also be no 100-percent target from 2040 onwards. This means that the technology ban on combustion engines is off the table. All engines currently built in Germany can therefore continue to be produced and sold.’

Automakers will be granted a three-year window between 2030 and 2032 to reduce car CO2 emissions by 55 percent compared to 2021 levels. The requirement for vans, meanwhile, will drop from 50 to 40 percent.

This decision comes following pressure from the German, Italian, and European auto sectors. Brands like Volkswagen Group and Stellantis specifically said the proposal would be difficult to meet. The EU finally agrees.