EU to ease car emissions rules, softening 2035 combustion engine ban

The European Union is set to relax its strict emissions rules for new cars, easing the planned 2035 ban on gasoline and diesel vehicles. The move comes after intense lobbying from automakers and key EU member states concerned about jobs and industry competitiveness.

Under the proposed changes, a number of plug-in hybrids and electric vehicles with fuel-powered range extenders would still be allowed on the market. The European Commission plans to reduce the required tailpipe emissions cut from 100% to 90% by the middle of the next decade. Car manufacturers would also need to offset additional pollution through low-carbon fuels, renewable energy, or locally produced green steel.

The proposal follows months of lobbying from major automakers, including Stellantis and Mercedes-Benz, and pressure from countries like Germany, which houses several leading car producers. The proposal aims to ease political tensions and protect jobs amid global competition and overcapacity in the auto industry, intensified by the China-US trade war.

The Commission is expected to formally adopt the proposal on Tuesday. It will then undergo discussion in the European Parliament and EU Council, where amendments may be proposed. The final rules will be agreed through trilogue negotiations between the three bodies.

EU officials declined to comment on the plans.