Europe’s Shift on Combustion Cars: A Green U-turn or Strategic Play?

The European Commission intends to lift the EU ban on new internal combustion engine cars by 2035, allowing up to 10% non-electric vehicles following significant pressure from Germany, Italy, and the European automobile sector. This move, which will require approval from EU governments and the European Parliament, marks the EU’s most significant departure from its “green” policy in the last five years.

Automakers like Volkswagen and Fiat’s parent company Stellantis have pushed for easing targets and penalties for non-compliance. The European automotive lobby group ACEA has stated that the Commission should reduce intermediate targets for 2030.

However, representatives from the electric vehicle industry argue that this will undermine investment and lead to the EU further losing ground to China in the electric vehicle transition. “Shifting from a clear 100% zero-emission target to 90% may seem small, but if we backtrack now, we’re harming not only the climate. We’re hurting Europe’s competitiveness,” said Polestar CEO Michael Loescheller.

William Todts, executive director of the clean transport group T&E, stated that the EU is stalling while China rapidly gains momentum. “Sticking to internal combustion engines won’t make European carmakers great again,” he said.