EU Green Policy Shift: Combustion Engines Make a Comeback

The European Commission has proposed easing its ban on combustion-engine cars by 2035, acquiescing to regional auto sectors' demands. The plan allows sales of some non-electric vehicles, igniting debates over economic impacts and the EU's positioning in the global electric vehicle race.

The European Commission is considering a significant policy shift by easing its planned 2035 ban on new combustion-engine vehicles. This move, brought on by pressure from regional auto sectors, marks a retreat from previously rigid green policies, but still requires approval from the EU governments and the European Parliament.

Key players in Germany and Italy's auto industry have long pushed for this flexibility, as they grapple with competition from Tesla and China's burgeoning electric vehicle market. Volkswagen, Europe's largest carmaker, voiced support, calling the proposal economically sensible and aligned with market realities.

Critics, however, argue this relaxation could undermine Europe's electric vehicle transition and diminish its international competitiveness. The plan proposes reducing CO2 emissions, with carmakers offsetting remaining emissions through innovative solutions like lower-carbon steel and biofuels.

(With inputs from agencies.)