Brussels plans to scrap the EU’s 2035 combustion engine ban, allowing carmakers to continue making a limited number of petrol and diesel-fuelled cars after the ban was meant to come into effect.
The original ban was due to force carmakers to cut their production of all combustion engine vehicles to zero by 2035.
But under a revision of the law to be proposed by the European Commission on Tuesday, European car manufacturers would be allowed 10 per cent of 2021 emissions levels as long as they meet certain conditions. The criteria include using green steel or producing cars with range extenders — electric vehicles with a small back-up fuel engine — according to two officials involved in the talks.
The conditions are still being discussed by policymakers ahead of the proposal’s presentation, and any change would have to be endorsed by EU governments and the European parliament before becoming law.
The EU’s combustion engine ban was seen as a totemic part of the bloc’s Green Deal climate law. Carmakers heavily lobbied against it, arguing that it would be impossible for them to meet because of the slow take-up of EVs and patchy spread of charging infrastructure.
Governments including Germany and Italy have also been highly critical. German Chancellor Friedrich Merz said on Friday that he supported its easing: “The reality is that there will still be millions of combustion engine-based cars around the world in 2035, 2040 and 2050.”
Other countries such as Spain and France have supported maintaining the ban. In a joint paper circulated to other member states in October, Paris and Madrid said that the ban “must not be called into question” and that the future of the European car industry “will be electric”.
The two countries did, however, advocate for some flexibilities such as “super credits” for cars made with European content to ease pressure on the industry, which is also battling an influx of cheap Chinese EVs and high energy prices at production sites in the EU.
The commission was due to review the rules next year but brought forward the review under pressure from industry.
The commission declined to comment on the talks.
The changes come even as sales of EVs in the EU have risen 26 per cent from January to October this year, accounting for 16 per cent of the new car market, according to European car industry body Acea. The strong growth has been driven by an increased offering of more affordable models from both European and Chinese carmakers.
Environmental groups and EV proponents have argued that weakening the pressure now would widen the gap between the west and China, which has led the transition to EVs.
“Scrapping the ban would be a major mistake for Europe,” said Simone Tagliapietra, senior fellow at the Brussels-based think-tank Bruegel. ‘‘It would do little to help carmakers, as electrification is the future of the industry, and it would seriously undermine what is left of Europe’s reputation as a global climate leader.”
But manufacturers from BMW and Renault to Stellantis have all argued that the pace of transition has been slower than expected, while the industry remains under pressure since EVs generate less profit than traditional combustion engine models.
Thomas Schäfer, chief executive of the Volkswagen brand, insisted that ‘‘the future is electric”, speaking in Barcelona on Friday. ‘‘On the way there, you need a bit more flexibility to make sure that you can deliver what customers actually want,” he added.
Although the EU’s move may increase pressure on Britain’s Labour government to follow suit, the UK has said it will not dilute its own plans to shift all new car sales to EVs from 2035.
