The European Union has unveiled plans to soften its landmark 2035 ban on the sale of new petrol and diesel cars, following sustained pressure from the automotive industry and several member states. Under the revised proposal, carmakers would be required to ensure that 90 percent of new cars and vans sold after 2035 are zero-emission vehicles, instead of the previously mandated 100 percent.
The change would allow a limited share of production to include plug-in hybrids, mild hybrids, or even internal combustion engine vehicles beyond 2035. However, manufacturers producing the remaining 10 percent of non-zero-emission vehicles would need to offset their carbon impact through additional green measures, such as using low-carbon materials or alternative fuels within their production processes.
EU officials argue the move preserves the overall direction toward electrification while offering flexibility to manufacturers and consumers. The proposal is presented as a way to balance climate goals with economic realities, particularly as European carmakers face intense competition, slower-than-expected demand for electric vehicles, and technological challenges.
Alongside this adjustment, the EU is also proposing incentives to accelerate the rollout of smaller, more affordable electric cars manufactured within the bloc. These measures include benefits for consumers and bonus credits for manufacturers, aimed at making electric mobility more accessible. Targets for reducing emissions from electric vans are also set to be relaxed.
The proposals still require approval from EU governments and the European Parliament. Critics argue the move weakens Europe’s climate ambitions and risks slowing the transition to clean transport, while supporters see it as a pragmatic compromise that keeps the EU on a broadly green trajectory.