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EU Poised to Dilute 2035 Car Emissions Rule, Keeping Some Combustion Models Alive

Brussels is acting to preserve industrial competitiveness against Chinese EV makers.

Overview

  • European Commission officials are expected Tuesday to propose replacing the 100% zero‑tailpipe goal with a 90% fleet‑wide CO2 reduction for 2035, with final details still being negotiated.
  • The emerging plan would permit sales of plug‑in hybrids and range‑extender vehicles after 2035, with requirements to offset remaining emissions through measures such as green steel and alternative fuels.
  • Draft elements include credit pooling between manufacturers, extra credits for small EVs, and a separate push to raise the share of electric models in corporate fleets that account for about 60% of new sales.
  • Germany and Italy, backed by major automakers like Volkswagen and Stellantis, pressed for a softer path, while Spain, environmental groups, and EV makers including Polestar argue a rollback would slow electrification.
  • EPP leader Manfred Weber said a formal proposal to abolish the combustion‑engine technology ban is imminent, reflecting industry concerns over weak EV demand, charging gaps, and rising competition from China.