The European Union has weakened its planned 2035 ban on new petrol and diesel cars, retreating from a flagship climate measure as it moved to support an auto industry hit by job cuts, factory closures and fierce global competition, UNN reports with reference to RFI.
Details
This change allows carmakers to continue selling a limited number of polluting vehicles after 2035, provided they offset the additional emissions with carbon credits. The original ban, approved in 2023, required all new cars sold from that date to be zero-emission.
EU Industry Commissioner Stefan Sejourne said the bloc was not abandoning its climate goals, presenting what he called a "lifeline" for European carmakers.
"The European Commission has chosen an approach that is both pragmatic and consistent with its climate goals," Sejourne said.
The decision came after months of lobbying by manufacturers and several EU governments led by Germany, who argued that the transition to electric vehicles was slower than expected and left Europe vulnerable to competition from China.
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According to industry data, just over 16% of new cars sold in the first nine months of 2025 were electric.
Carbon credits
Under the revised plan, carmakers will be able to sell gasoline, diesel and hybrid cars after 2035, offsetting their emissions in two ways.
One involves the use of low-carbon steel produced in the EU in car manufacturing. The other depends on the amount of biofuels and so-called e-fuels placed on the market annually by energy companies.
The European automotive industry employs almost 14 million people and accounts for about 7% of the bloc's economic output. Carmakers have warned that high costs and unevenly distributed charging networks have slowed consumer demand for electric vehicles.
German Chancellor Friedrich Merz welcomed the shift, calling it a step in the right direction. "Greater openness to technology and greater flexibility are the right steps," he said in a statement, adding that Berlin would study the proposals in detail.
France resists
France criticized the decision and said it would try to stop it when the package is presented to EU member states for approval.
"We regret the flexibility granted for internal combustion engine cars," said French Environment Minister Monique Barbut. "We will do everything we can to have this flexibility revoked."
Spain, France and Northern European countries have warned that easing the ban risks slowing the transition to electric vehicles and hindering investment. Greenpeace accused the EU of a "U-turn," saying it was "flogging a dead horse" by diverting money from electric vehicles.
"This backward industrial policy is bad news for jobs, air quality and the climate," said Martin Kaiser, the group's executive director in Germany.
Critics in France also warn that easing the ban risks leaving Europe behind as other regions accelerate the transition to electric vehicles.
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"To claim that the jobs and innovations of tomorrow still depend on diesel or gasoline engines, when the rest of the world has started an industrial race to batteries and electric vehicles, means condemning the French and European automotive industry to decline," said Neil Macaroff, director of the Paris-based think tank Strategic Perspectives, to AFP.
Help for electric vehicles
Along with the changes, the European Commission has unveiled measures to help carmakers meet emission targets by 2035. These include "supercredits" for small, affordable electric vehicles made in the EU, which will be weighted more heavily in calculating fleet emissions.
Medium and large companies will also be required to make their fleets greener, which account for about 60% of new car sales in Europe. At least 30% of new vehicles purchased by firms must be zero or low emission, with higher targets for richer countries.
The EU has also pledged 1.5 billion euros in interest-free loans to support European battery manufacturers. According to EU data, road transport accounts for about 20% of Europe's total planet-warming emissions, with cars making up the bulk of that amount.
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