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EU Extends ICE Vehicle Ban to 2040, Giving Automakers Five-Year Breathing Room
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Published in Automotive and Transportation on Wednesday, December 3rd 2025 at 3:37 GMT by motor1.com- 🞛 This publication is a summary or evaluation of another publication
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Europe Postpones the Ban on Internal‑Combustion Engines Until 2040 – A Closer Look
The European Union’s decision to push back the planned ban on internal‑combustion‑engine (ICE) cars has taken the automotive world by surprise, but it is rooted in a complex mix of economic, technological, and political considerations. The announcement – delivered on Tuesday in Brussels – will extend the deadline for the phase‑out of new ICE vehicles from 2035 to 2040, giving car makers and governments a five‑year breathing space to navigate the transition to a zero‑emission future.
The Original Promise
When the EU’s “Fit for 55” package was unveiled in 2021, the ban on new ICE vehicles by 2035 was a cornerstone of the bloc’s strategy to slash greenhouse‑gas emissions by 55 % by 2030 relative to 1990 levels, and to meet the Paris Agreement’s long‑term temperature goals. The policy was also meant to spur investment in charging infrastructure, battery manufacturing, and public transport. The European Commission’s 2022 “Clean Energy for All Europeans” directive called for all new cars sold in the EU to have a zero‑emission powertrain by 2035, a target that many automakers had already started to plan around.
Why the Delay?
The Commission’s postponement comes after a flurry of consultations with industry stakeholders, particularly the European Automobile Manufacturers Association (ACEA) and the German automotive sector. A number of factors were cited as reasons for the extension:
- Supply‑chain constraints – The rapid growth in demand for batteries and electric‑drive components has outpaced the capacity of suppliers, leading to price volatility and concerns about a steady supply for the next decade.
- Economic impact – Many EU member states house large automotive production bases. A sudden, abrupt switch to zero‑emission vehicles could threaten jobs and export competitiveness, especially in countries like Germany, Italy, and Spain.
- Consumer demand – Surveys reveal that a sizable portion of European consumers still prefer ICE cars for their range, refuelling convenience, and perceived reliability, especially in rural and southern regions.
According to the Commission’s spokesperson, the revised timeline will still meet EU climate targets by combining a longer ICE window with increased incentives for electric vehicles (EVs) and a stricter fuel‑efficiency standard for 2025 onward.
Industry Reactions
The German government, which has long championed a “phased transition” approach, welcomed the decision. Chancellor Olaf Scholz’s spokesperson stated that the delay would “give the German auto industry the time it needs to invest in electric‑drive technology without jeopardising employment.” Likewise, major German automakers—including Volkswagen, BMW, and Mercedes‑Benz—issued statements applauding the extension, arguing that a swift ban could harm the country’s global automotive leadership.
On the other hand, the European environmental lobby, represented by the European Climate Foundation and several NGOs, expressed disappointment. In a joint letter to the Commission, they argued that the postponement could derail the EU’s climate commitments, making it harder to reach net‑zero emissions by 2050. “The longer we wait, the greater the cost of future climate change,” the letter read.
The EU’s New Roadmap
While the ban has been delayed, the EU is not rolling back its broader climate agenda. The Commission has announced a revised set of measures, including:
- Stricter CO₂ emission targets for 2030 – New cars must meet a 55 % reduction in CO₂ emissions compared with 2021 levels, pushing automakers to adopt battery‑electric vehicles (BEVs) and hydrogen fuel‑cell options sooner.
- Increased investment in charging infrastructure – The EU will allocate €25 billion over the next decade to expand public charging networks, focusing on “high‑capacity” fast‑charge stations that can serve long‑haul and commercial fleets.
- Revised “Zero‑Emission Vehicle” (ZEV) Directive – The Directive will be amended to require a higher percentage of new cars sold to be zero‑emission, even if they are still ICE but have hybrid or plug‑in technology. The aim is to keep the market in motion while we move toward a fully electric fleet.
In addition to these measures, the Commission is encouraging research and development in battery technologies, such as solid‑state and lithium‑sulphur chemistries, that could reduce the cost and increase the energy density of electric vehicles. A €3.8 billion fund will be allocated to support these initiatives over the next five years.
Broader Implications
The decision to postpone the ICE ban will have ripple effects across the EU’s industrial and environmental landscape:
- Automotive supply chains – With a five‑year extension, suppliers have more time to scale up battery production and supply high‑capacity electric motors, potentially lowering the overall cost of EVs.
- Consumer behaviour – The extended timeline may ease consumer anxiety around range anxiety and high upfront costs, potentially accelerating EV adoption in the long run.
- Climate commitments – The EU’s ability to meet its 2050 net‑zero goal will depend on how aggressively the remaining five years are exploited to push EV sales to the front of the line. Even a modest delay can inflate the required CO₂ reductions in the final decade, potentially raising the cost of climate mitigation.
A Look Ahead
The EU’s recalibration of its ICE ban reflects a broader trend in global policy – balancing environmental ambition with industrial realities. By extending the deadline to 2040, the Commission hopes to give automakers the flexibility they need to invest in battery technology, supply‑chain resilience, and charging infrastructure without sacrificing the EU’s climate commitments. Whether this measured approach will ultimately accelerate the transition to a zero‑emission fleet remains to be seen, but it is clear that the EU’s climate strategy will now be more complex, requiring deeper cooperation between governments, industry, and consumers to reach a common goal.
In the meantime, drivers across Europe can expect to see a wider mix of vehicles on the road – from ICE to hybrids, plug‑in hybrids, and battery‑electric cars – each contributing to a gradual but unmistakable shift toward a cleaner, more sustainable transport sector.
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