EU may backtrack on ban on petrol and diesel cars

France and Germany are reportedly working towards a deal that would force the European Union to lower its proposed carbon emissions reduction target from 100% to 90%, potentially allowing internal combustion engine vehicles to continue to be sold beyond the deadline. According to Automotive News, the proposed changes would represent a significant shift in Europe’s approach to phasing out traditional petrol and diesel vehicles. Under existing rules, from 2035, new cars and vans sold in the EU must achieve a 100% reduction in tailpipe CO₂ emissions compared to a baseline set by regulations.
This would, in practice, end the sale of new conventional models with internal combustion engines. However, the reported compromise would leave manufacturers free to continue selling some vehicles with internal combustion engines. The proposals could also remove requirements for manufacturers to offset remaining emissions through measures such as the use of low-carbon steel or alternative fuels. The possible easing of the rules comes after growing pressure from European carmakers, who have raised concerns about the costs of electrification and the pace of consumer demand for electric vehicles. Manfred Weber, president of the European People’s Party, had previously suggested that the original deadline would be abandoned.

In an interview with the German newspaper Bild in December 2025, he stated that plans for 2035 were “out of the question.”

He also claimed that “there will be no 100% target from 2040 onwards”. Mercedes-Benz CEO Ola Kallenius has also questioned the feasibility of the proposed emissions compensation measures. Speaking in March 2026, he said: “I know the green steel market and I know how unrealistic these expectations are”. The carmaker has warned that overly demanding regulations could affect demand for new vehicles and create difficulties for manufacturers trying to reconcile environmental targets with affordable prices for consumers. Any changes to the EU rules for 2035 would have significant consequences for the European car industry, which has invested heavily in the production of electric vehicles.

However, the reported agreement would not mean an unrestricted return to petrol and diesel cars, as manufacturers would still have to meet significant emissions reduction targets. The proposals would also have to go through the EU legislative process before coming into force. For drivers, the potential changes could mean a wider choice of engine types even after 2035, although the final rules have yet to be confirmed.

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