EU Faces Backlash on Combustion Engine U-Turn

The European Commission is reconsidering its ban on new combustion-engine cars from 2035, allowing sales of certain non-electric vehicles. Under pressure from automakers and countries like Germany, the EU may permit plug-in hybrids using CO2-neutral fuels. This move could undermine the EU's green policies and their competitive edge against China.

The European Commission appears poised to reverse its planned 2035 ban on new combustion-engine vehicles, allowing certain non-electric models after pressure from major automotive nations like Germany and industry giants. The proposed policy shift will enable the sale of plug-in hybrids using CO2-neutral biofuel or synthetic fuel.

While the current EU rules required zero emissions for all new cars by 2035, there's now a proposal to cut CO2 emissions by 90% from 2021 levels. Manfred Weber, the German EPP president, suggests this reduction is significant despite being less than the original 100% target.

This potential policy relaxation—which has to be approved by EU governments and the European Parliament—marks a significant departure from the EU's aggressive green agenda, especially as companies like Ford pull back on EV production. Amid these changes, Chinese EV producers are capturing market share, posing a competitive threat to European carmakers.