The European Commission has approved a revised plan that lifts the 2035 ban on internal combustion engines. Instead, it adjusts the 2035 emission reduction target from 100% to 90%, with the remaining 10% to be offset through other green measures in factory production—including the use of EU-manufactured low-carbon steel, or the adoption of electronic fuels (E-Fuels) and biofuels. However, the plan still requires formal approval from EU member states and the European Parliament.
The European Commission stated that the new proposal will allow plug-in hybrid electric vehicles (PHEVs), extended-range electric vehicles (EREVs), mild hybrid electric vehicles (MHEVs), and internal combustion engine vehicles to remain in service beyond 2035, alongside electric vehicles (EVs) and hydrogen fuel cell vehicles (HFCVs). Analysts argue that the plan marks a victory for automakers such as Volkswagen, BMW, Mercedes-Benz, Stellantis, and Renault, as it not only extends the lifespan of internal combustion engines but also grants them a more ample transition period.
Nevertheless, some voices contend that the proposal is actually a "pyrrhic victory" for traditional automakers over electric vehicles. They argue it will undermine Europe's overall competitiveness and hamper European carmakers' ability to compete with Chinese electric vehicle manufacturers in the global EV market.