EU officially rolls back full ban on ICE – carmakers required to achieve 90% emissions reduction by 2035

Cars powered by internal combustion engines will be allowed to remain on sale in the European Union, as the European Commission has officially stated the rolling back of mandatory tailpipe emissions reduction by 2035.

Carmakers will be required to comply with a 90% tailpipe emissions reduction target by 2035, rather than a 100% reduction which effectively ruled out any new internal combustion engine-powered car beyond that date. The remaining 10% of emissions will however be required to compensated for, through the use of low-carbon steel produced in the European Union, or through the use of e-fuels and biofuels.

“This will allow for plug-in hybrids (PHEV), range extenders, mild hybrids, and internal combustion engine vehicles to still play a role beyond 2035, in addition to full electric (EVs) and hydrogen vehicles,” the European Commission said in a statement. Notably, the EC did not state an end date for the sale of ICE-powered vehicles.

EU officially rolls back full ban on ICE – carmakers required to achieve 90% emissions reduction by 2035

Ahead of 2035, manufacturers will be given “super credits” towards emissions targets for small EVs produced in the European Union to encourage the production of small EVs, while additional flexibility is granted to the vans segment with a CO2 reduction target that is reduced from 50% to 40%.

The European Commission also proposed a targeted amendment of CO2 standards for heavy-duty vehicles with “a flexibility easing the compliance with the 2030 targets”.

“Innovation. Clean mobility. Competitiveness. This year, these were top priorities in our intense dialogues with automotive sector, civil society organisations and stakeholders. And today, we are addressing them all together. As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition,” said European Commission president Ursula von der Leyen.

“This package will be a lifeline for the European automotive industry. We are pulling every lever at our disposal – simplification, flexibility, European preference, targeted support and innovation. Together, these measures are our commitment to restoring Europe’s industrial leadership while leading the global transition on climate,” said European Commission EVP for prosperity and industrial strategy Stéphane Séjourné.

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