The European Union has backed proposals to relax its ban on new petrol and diesel cars beyond 2035, lowering carbon dioxide reduction targets and opening the door to continued sales of combustion-engined vehicles. The EU's Environment Committee voted on Friday in favour of reducing CO2 targets from 90 per cent against 2021 levels to 87.5 per cent for cars and 80 per cent for vans by 2035. The original plan had called for all combustion engine vehicles to be banned from that date.
Under the revised approach, a small proportion of hybrid, petrol and diesel cars would be permitted to continue selling beyond the middle of the next decade, rather than enforcing a total ban on fossil-fuelled models. Manufacturers would also receive super-credits for small electric cars built in Europe, aimed at helping to expand the market for more affordable electric vehicles. Vice-chair of the EU committee Massimiliano Salini described the vote as a turning point for the European automotive industry, stating that registering combustion engine cars without compensation obligations would remain possible, protecting what he called technological freedom.
The decision was welcomed by carmakers including Toyota and by ACEA, the European automotive trade body, which praised the approach as pragmatic. The change follows intense pressure from manufacturers arguing that high battery costs and competition from cheaper Chinese rivals have made meeting the original targets unsustainable. The SMMT, the British industry lobby group, has argued that recent growth in electric vehicle sales has come at an unsustainable cost, with manufacturers spending billions of pounds on discounts and incentives to meet demanding sales quotas.
The EU's shift is likely to increase pressure on the British government to ease its own electric vehicle rules. The UK Government is currently considering relaxing its Zero Emission Vehicle Mandate, which requires manufacturers to sell an increasing proportion of fully electric cars each year, rising from 33 per cent this year to 80 per cent by 2030. A recently concluded consultation proposes allowing manufacturers to sell a greater proportion of hybrid vehicles, potentially reducing the pure-electric vehicle requirement to as little as 50 per cent by 2030, with the pure petrol and diesel ban remaining from that date.
Transport Secretary Heidi Alexander said the end goal of ending sales of new petrol and diesel cars has not changed, but that the government needs to ensure industry is taken along on the journey. The Department for Transport has specifically proposed reconsidering the role of plug-in hybrid electric vehicles within the legislation. Britain is expected to learn the outcome of the review soon, with ministers promising a response no later than early 2027.
For UK motorists and manufacturers, a relaxation of electric vehicle sales targets would mean greater access to hybrid and combustion-engined vehicles for longer, and lower pressure on carmakers to offer heavy discounts on electric cars to meet quotas.