The European Union is moving toward a significant revision of its plans to phase out new petrol and diesel cars by 2035, after lawmakers backed proposals that could allow internal combustion engines to remain on the market beyond the original deadline.
On November 4, the European Parliament’s Environment Committee approved the proposed changes by 48 votes to 30, with two abstentions. The decision marks an important step in reconsidering one of the EU’s central climate policies amid pressure from European automakers and governments concerned about industrial competitiveness.
The committee’s position would reduce the required emissions cut for new passenger cars from 100% to 87.5% by 2035, with additional credits linked to the use of low-carbon steel.
Renewable fuels could extend the life of combustion engines
Under existing EU legislation, manufacturers must achieve a 100% reduction in average CO₂ emissions from new cars and vans by 2035, effectively ending sales of new conventional petrol and diesel vehicles.
However, in December 2025, the European Commission proposed lowering that target to 90%, allowing manufacturers to compensate for remaining emissions through renewable fuels and low-carbon steel. The Parliament’s latest proposal goes further, setting an 87.5% reduction target, supplemented by credits potentially bringing the total reduction to 95%. It also introduces provisions for vehicles operating exclusively on eligible renewable fuels, including synthetic e-fuels and advanced biofuels.
Synthetic fuels are produced using renewable electricity, hydrogen and captured carbon dioxide, while advanced biofuels can be manufactured from waste materials and agricultural residues. Manufacturers including Porsche have invested in synthetic-fuel production, while BMW, Toyota, Bosch and Repsol have explored renewable fuels as alternatives for existing combustion-engine technology.
Environmental organizations warn that these fuels remain expensive, have limited availability and still produce exhaust emissions when burned.
Carmakers welcome flexibility as environmental groups raise concerns
The European People’s Party described the committee vote as an important development for Europe’s automotive industry, arguing that technological flexibility could help preserve employment and manufacturing capacity.
The European Automobile Manufacturers’ Association (ACEA) welcomed the broader approach but said the proposed measures remained insufficient to address the industry’s challenges.
Environmental organization Transport & Environment warned that relaxing the targets could undermine investment in electric vehicles and batteries while increasing uncertainty for manufacturers already committed to electrification. The organization estimates that weaker requirements could reduce the minimum electric-vehicle share needed to meet manufacturers’ emissions targets, although those calculations do not represent mandatory sales quotas.
The proposal also faces practical obstacles, including the high cost of synthetic fuels, limited production capacity and the challenge of ensuring that vehicles certified for renewable fuels do not use conventional petrol or diesel.
For current vehicle owners, the debate does not change existing rules. The 2035 requirements concern new vehicle registrations, not cars already on European roads.
The Parliament is expected to vote on the proposal in December, before negotiations with EU member states. Until the legislative process is completed, the existing 2035 target remains in force.
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