EU Relaxes 2035 Car Ban: Pragmatic Shift for Auto Industry, Climate Goals Intact
EU Eases 2035 Combustion Engine Ban, Calls It Pragmatic

The European Union has taken a significant step back from its previously announced blanket ban on the sale of new combustion engine cars by 2035. The bloc's industry chief, Stephane Sejourne, described the decision as a "pragmatic" response to the challenges faced by the vital automotive sector, while insisting that the EU's overarching green ambitions remain firmly on track.

A Pragmatic Pivot for Europe's Auto Giants

In an interview with AFP at the EU parliament in Strasbourg, European Commission Vice President Stephane Sejourne outlined the new approach. Instead of a complete switch to electric vehicles (EVs) by 2035, car manufacturers will now be allowed to use "other types of technologies" for a limited portion of their sales beyond that deadline. This flexibility comes after sustained pressure from the industry and key member states.

"The European Commission has chosen an approach that is both pragmatic and consistent with its climate objectives and ambitions," Sejourne stated. He acknowledged the dual pressures of slower-than-expected consumer uptake of electric cars and the significant difficulty for manufacturers to transition their entire fleets to 100% electric within the original timeframe.

Balancing Climate Goals with Industrial Reality

The original combustion-engine ban was a cornerstone of the EU's Green Deal, adopted during Commission President Ursula von der Leyen's first term. It was designed to be a key driver towards the bloc's legally binding pledge of achieving carbon neutrality by 2050. Sejourne was quick to reassure that the ultimate climate goal "remains the same."

This policy adjustment is part of a broader, pro-business shift within the EU over the past year. Faced with intense global competition, particularly from China, and trade tensions with the United States, the bloc has delayed or scaled back several environmental measures. Sejourne had previously sounded the alarm in March, warning that Europe's car industry was in "mortal danger" as rivals in the US and China accelerate ahead.

The stakes are enormous. The European auto industry, often described as the jewel in the continent's industrial crown, employs nearly 14 million people and contributes roughly seven percent to the EU's total economy.

Member State Divisions and Sectoral Support

The push for a rollback was led aggressively by Germany and Poland, who fought for the right to continue selling combustion-engine cars post-2035. France, however, adopted a more cautious stance, concerned that the move could undermine investments in Europe's nascent electric battery sector.

Sejourne addressed these concerns, highlighting that France had secured significant concessions. As part of the new package of measures, the Commission announced 1.5 billion euros (approximately $1.8 billion) in interest-free loans for European battery makers, a move seen as vital for securing the supply chain for the electric transition.

The industry chief also pushed back against criticism from environmental groups, who argue that granting concessions to automakers weakens Europe's fight against climate change. "The electric transition remains the objective," Sejourne affirmed, "but these flexibilities are pragmatic in the current context." This recalibration aims to ensure the survival and competitiveness of a foundational European industry without abandoning the long-term vision for a greener future.