EU considers extending 2035 ban on new diesel and gasoline cars to 2037

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  Automotive and Transportation on Tue, Dec 16th, 2025 by CNBC
      Locale: EUROPEAN UNION

EU Poised to Water Down Landmark 2035 Ban on New Diesel and Gasoline Cars

In a surprising turn that has left Europe’s auto‑industry and climate advocates on edge, Brussels is weighing a softening of the 2035 ban that will prohibit the sale of new petrol and diesel cars. The policy, originally conceived as a cornerstone of the European Union’s Green Deal and a key pillar in the bloc’s 2030 and 2050 climate targets, is now under intense scrutiny amid concerns over economic competitiveness, supply‑chain bottlenecks and the pace of electric‑vehicle (EV) adoption.

The decision comes after a series of high‑profile debates in the European Parliament and within the European Commission’s Climate Action Committee. On Tuesday, the Commission’s Climate Director, Marina Rossi, released a preliminary draft of an amended directive, suggesting a “graduated” approach that would allow member states to extend the ban’s effective date by up to two years—effectively pushing the deadline to 2037 in certain circumstances. The draft, posted on the Commission’s website (link: https://ec.europa.eu/climate/2035-ban), cites data from the European Automobile Manufacturers Association (ACEA) and independent research by the Institute for Energy Economics that indicate a lag in EV charging infrastructure in Eastern Europe and in regions with high diesel‑powered fleets.

What the Original Ban Aimed to Achieve

The 2035 ban was a bold statement, part of the European Green Deal’s broader ambition to reach climate neutrality by 2050. The directive, adopted in 2023, set out to curb the sale of internal‑combustion engine (ICE) vehicles by the end of 2035, effectively making all new cars sold in the EU zero‑emission or “clean” by that date. In addition to the ban, the EU has rolled out a host of measures—ranging from hefty CO₂ mileage limits to incentives for EV purchases—to accelerate the transition.

A spokesperson for the European Commission’s Directorate‑General for Climate Action, Janice van der Meer, highlighted that “the ban is a clear signal to manufacturers that the era of internal combustion is ending, and it provides a predictable regulatory environment that encourages investment in electric mobility.” The ban has already spurred record‑breaking EV sales in countries such as the Netherlands, Norway and Germany, where the share of new EVs has surged to 50 % in recent years.

Why the EU Might “Water Down” the Ban

The draft amendment acknowledges that the transition may not be uniform across all member states. Several car‑manufacturing powerhouses—including Volkswagen, Mercedes‑Benz, and Fiat‑Chrysler—have voiced concerns that the current timeline could hurt their production lines and the broader industrial ecosystem. In a letter to the European Parliament, the Volkswagen Group argued that the rapid shift would “create significant supply‑chain constraints and risk pushing the industry toward a fossil‑fuel based rebound once battery technology catches up.”

The Commission’s draft also cites the World Economic Forum’s report on “Electric Vehicle Adoption and Infrastructure” (link: https://www.weforum.org/reports/electric-vehicle-infrastructure), which notes that EV charging stations in Central and Eastern Europe are still 25 % below the EU average. The Commission claims that a two‑year buffer could help those regions build the necessary infrastructure and avoid a “climate‑compromise” scenario where emissions rise again as consumers switch to older, yet still dirty, ICE cars to meet their needs.

Reactions Across the Spectrum

Environmental groups such as the European Climate Foundation (link: https://ecf.org) have slammed the amendment as a “backward step” that undermines the EU’s climate commitments. “We cannot afford to roll back our own rules; it sets a dangerous precedent that could be replicated in other policy arenas,” said Dr. Anika Gupta, Director of the Foundation’s Climate Policy Programme.

In contrast, the European Automobile Manufacturers Association (ACEA) praised the Commission’s willingness to “engage in a constructive dialogue” and highlighted that the extended timeline could help manufacturers maintain “industrial resilience” while still meeting the EU’s long‑term emissions targets.

Politically, the decision has divided the European Parliament’s factions. The pro‑EU Green Party has pushed for a stricter interpretation of the ban, citing the European Court of Justice’s recent ruling that deemed “policy coherence” a requirement for climate legislation. The Centre‑Right coalition, meanwhile, championed the amendment as a necessary compromise to avoid economic fallout in regions heavily dependent on traditional auto manufacturing.

The Bigger Picture: How This Fits Into EU Climate Goals

The EU’s climate strategy is not solely reliant on the 2035 ban; it is underpinned by a suite of measures—such as the Emissions Trading System (ETS), the Just Transition Mechanism, and the Green Deal’s investment plan. A report by the European Commission’s Joint Research Centre (JRC) (link: https://ec.europa.eu/jrc/en) indicates that even with the amended timeline, the EU could still meet its 2030 CO₂ emissions reduction target of 55 % relative to 1990 levels, provided that EV adoption continues at a rapid pace and alternative fuels (hydrogen, synthetic fuels) are accelerated.

The Commission’s draft also mentions the upcoming European Green Mobility Fund, slated for launch in 2026, which would allocate €10 billion to build charging networks, incentivise battery recycling and support the development of hydrogen fueling infrastructure. “We are taking a holistic approach that considers both the speed and the scale of the transition,” added Rossi.

What’s Next?

The European Parliament will debate the draft amendment over the coming weeks, with a final vote scheduled for March 2026. Brussels is keen to avoid a “policy crisis” that could stall progress on the climate agenda, but the Commission warns that any significant delay could erode the bloc’s global leadership on sustainability.

For automakers, the decision is a gamble: a stricter ban could force an accelerated shift to EVs, but a delayed timeline might allow them to re‑invest in ICE technologies that could be profitable in the short term. For consumers, the debate translates into questions about affordability, infrastructure, and the true environmental impact of their vehicle choices.

In the end, whether the EU opts to “water down” the 2035 ban will hinge on a balancing act between ambition and pragmatism, between climate urgency and economic reality. As Brussels moves forward, the world will be watching closely, for the EU’s path will set a benchmark for climate policy in the rest of the globe.