EU reconsidering 2035 ICE ban, allowing continued combustion engine sales under limits
The European Union is preparing to withdraw its previously planned 2035 ban on the sale of new internal combustion engine (ICE) vehicles, marking a major shift in its long-term emissions strategy. The earlier mandate required a 100 percent reduction in tailpipe CO2 emissions for all new cars sold from 2035 onward, effectively forcing automakers to move entirely to electric vehicles or full hybridisation.
Under the revised proposal, manufacturers will now be expected to reduce fleet emissions by 90 percent instead of eliminating them entirely. This change opens the door for continued production and sale of ICE vehicles beyond 2035, provided they meet stricter efficiency and emissions requirements.
Germany has been a leading force behind the policy reversal, with Italy and several automakers also supporting a more flexible approach. The updated stance reflects concerns around job security, industrial stability and the economic impact of phasing out combustion engines entirely. Several EU policymakers argue that maintaining ICE production, alongside electrification, will help protect thousands of jobs linked to engine manufacturing and related supply chains.
The political bloc had also been under pressure from parts of the automotive industry that believe a complete shift to EVs by 2035 is unrealistic due to infrastructural challenges, uneven charging networks and the high cost of batteries. The revised target eases the transition curve, giving manufacturers more room to balance EV rollout with continued hybrid and combustion technologies.
A formal announcement from EU member governments is expected soon. If confirmed, the new framework indicates that Europe’s full transition to electric mobility will extend well beyond 2040, with ICE vehicles remaining part of the market mix for the foreseeable future.
