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The European Commission is expected to outline proposals that could significantly alter the EU’s plan to phase out new petrol and diesel car sales from 2035. The move follows sustained lobbying from major member states, including Germany and Italy, alongside mounting pressure from European carmakers facing intense competition from US and Chinese manufacturers.

While final details are still under discussion, officials and industry sources suggest the current rules could be delayed by up to five years or softened in a way that removes a firm end date for combustion engine sales. Any such change would mark the most substantial retreat from the EU’s green transport policies since they were accelerated in 2023.

That legislation required all new cars and vans sold in the EU from 2035 to be CO2 emission-free, with penalties for manufacturers that failed to meet interim targets. Supporters viewed it as a clear signal to drive investment into electric and alternative fuel technologies. Critics, however, argue the policy underestimated economic and industrial realities.

Traditional carmakers such as Volkswagen and Stellantis have been vocal in calling for greater flexibility. They point to slower-than-expected consumer demand for electric vehicles, higher purchase prices, and uneven charging infrastructure across Europe. Tariffs on Chinese-built electric vehicles have provided limited relief, with many European producers still struggling to match costs and scale.

By contrast, companies focused on electric vehicles warn that easing the targets risks weakening Europe’s competitiveness in the long term. They argue that technology, infrastructure, and consumer readiness have reached a tipping point, and that regulatory uncertainty could deter further investment and allow China to strengthen its lead in electrification.

The debate has exposed a deeper divide over how the transition should be managed. Automakers are calling for a broader “multi-technology” approach, allowing continued sales of combustion engines running on alternative fuels such as e-fuels and advanced biofuels, alongside plug-in hybrids and range-extended electric vehicles. Supporters say this would protect jobs and manufacturing capacity while reducing emissions gradually. Environmental groups counter that supplies of such fuels are limited, expensive, and unlikely to deliver genuine emissions reductions at scale.

The Commission has already offered some flexibility, granting manufacturers additional time to meet interim targets and signalling openness to e-fuels and advanced biofuels. Further proposals are expected to include incentives to increase electric vehicle uptake in corporate fleets, which account for around 60 percent of new car sales in Europe, and the creation of a new category for smaller electric vehicles with lower taxes and favourable regulatory treatment.

From an Irish perspective, the Government has indicated it is awaiting formal proposals before taking a position. Minister for Transport Darragh O’Brien has said Ireland will continue to engage with EU partners to support a balanced transition to zero-emission transport. He also noted that Ireland has already exceeded its 2025 electric vehicle target, with more than 197,000 electric vehicles now in use.

For businesses and consumers, the uncertainty highlights a broader issue. Policy ambition alone does not guarantee successful transition. Without affordable vehicles, reliable infrastructure, and regulatory stability, shifting targets may create as many problems as they solve.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.