European Parliament takes a step towards keeping petrol cars on sale after 2035
The European Union’s plan to end sales of new combustion-engine cars from 2035 could be eased significantly. The European Parliament’s environment committee has backed a proposal to lower the mandatory CO₂ emissions reduction for carmakers from 100% to 87.5%. This would leave scope for sales of new petrol, diesel and hybrid cars after 2035. It is not a final decision, however, as the change still needs approval from the European Parliament and member states.
The current 100% target could fall to 87.5%
On 4 November, the European Parliament’s environment committee approved an amendment that would ease the 2035 CO₂ emissions requirements for carmakers.
Current legislation requires average CO₂ emissions from new passenger cars to fall by 100% by 2035 compared with the 2021 baseline. In effect, this leaves room only for zero-emission vehicles in the new-car market.
The European Commission had already proposed a 90% reduction target in December 2025. The parliamentary committee wants to go further, allowing manufacturers to reduce emissions by 87.5% and make additional use of accounting mechanisms to offset emissions.
According to a Reuters report, using low-carbon steel produced in the European Union would allow a further offset of up to 7.5 percentage points of emissions.
This would make the 2035 requirements more flexible, but would not mean an unrestricted return for combustion engines.
A fresh opportunity for hybrids and alternative fuels
The amendment also supports special provisions for cars running exclusively on qualifying alternative fuels, including certain biofuels.
Such vehicles could receive treatment comparable to zero-emission cars in CO₂ accounting.
Manufacturers are also being offered so-called supercredits. An electric car built in the European Union and measuring up to 4.2 metres in length would count as 1.4 vehicles, allowing manufacturers to offset sales of higher-emission models.
The easing of requirements would also apply to vans. Their emissions reduction target for 2030 would fall from 50% to 35%, and the 2035 target from 100% to 80%.
For the automotive industry, this would mean more time to develop combustion engines, hybrid powertrains and electric cars in parallel.
European manufacturers gain time, but not necessarily a competitive advantage
Volkswagen, Mercedes-Benz, BMW and Stellantis, whose model ranges still include a substantial proportion of combustion-engine cars, could benefit most from the change.
The decision would also support the strategies of Toyota and other manufacturers investing in hybrid technology.
Europe’s automotive industry faces a difficult situation. Developing electric cars requires substantial investment, but charging infrastructure and demand are not developing at the same pace across all member states.
Meanwhile, Chinese manufacturers are making their electric cars increasingly competitive on technology and price.
This is the central tension in the proposed change. Looser requirements give European companies more time, but could also reduce the pressure to develop cheaper, more efficient electric cars.
The European Automobile Manufacturers’ Association, ACEA, cautiously welcomed the Commission’s proposal, but said the changes did not yet resolve all the industry’s problems. Environmental organisation Transport & Environment, by contrast, warned that extending sales of combustion-engine vehicles could weaken Europe’s competitiveness in electric cars.
What would the change mean for buyers?
If the European Union gives the proposal final approval, buyers in Europe could still have the option of choosing new combustion-engine cars and hybrids after 2035.
This does not mean, however, that all current engines would remain in production. Carmakers would still have to reduce average CO₂ emissions across their entire fleet of vehicles sold.
Nor does the proposal change the rules on used-car sales. Combustion-engine cars are already permitted to remain on the road after 2035.
The key point is that the European Union has not scrapped the restriction on combustion engines. The environment committee backed easing it, and the European Parliament’s plenary is expected to discuss the proposal in December. Parliament and member states must then reach a final agreement.
Europe’s automotive industry could gain more breathing room, but how it uses that time will depend on the manufacturers themselves. If the extra time is spent solely on extending the life of existing powertrains, Chinese competitors could pull even further ahead in electric-car development.
