EU lifts full ban on sales of cars with internal combustion engines after 2035

The European Union approved rules under which, from 2035, it was planned to completely ban the sale of new cars with internal combustion engines. Cars with internal combustion engines can remain on sale even after this date.

What is known

The decision was made after active lobbying by EU governments and major car manufacturers, including Volkswagen, Renault, Mercedes-Benz, BMW, and Stellantis.

According to the new proposals of the European Commission, from 2035, CO2 emissions from cars must be reduced by 90% compared to the 2021 level, and not by 100% as previously assumed. The previous requirement effectively meant a ban on the sale of all cars except electric ones.

The European Commission explained that hybrids and cars with internal combustion engines can be sold after 2035. The remaining 10% reduction in emissions must be compensated by biofuels, synthetic fuels, and low-carbon steel of European production.

Car manufacturers using 'green' steel will receive additional credits to comply with environmental standards. Compact electric cars produced in the EU according to the new M1E standards will bring 'supercredits'.

Manufacturers face fines for failing to meet targets, which can amount to billions. However, there is no specified end date for the cessation of sales of cars with internal combustion engines in the document — formally, they can be sold indefinitely.

Special attention is paid to corporate fleets. EU countries will need to set the share of electric vehicles in new registrations of corporate cars and vans for large companies by 2030. Specific figures and criteria for large companies have not yet been determined.

The European Commission believes that this will accelerate the transition to electric vehicles and make them more accessible to private buyers with small annual mileage.

The new rules must be presented to EU countries at the beginning of next year and are expected to come into force quickly after approval by the European Parliament.

The head of the European Commission, Ursula von der Leyen, stated that Europe remains at the forefront of the global transition to clean technologies. European Commission Vice-President for Prosperity and Industrial Strategy Stephan Séjourné called the changes 'a lifeline for the European automotive industry'.

Source: EC