European Union Reaffirms 2035 Ban on New Gas Cars

But it's making it easier for automakers to get there.

BMW X5 M Competition engine

Adrian Padeanu

By: Adrian Padeanu

Mar 7, 2025 at 3:48am ET

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I still find it hard to believe that automakers won’t be allowed to sell new gasoline/diesel cars in Europe in a mere 10 years. Technically, it’s not an outright ban on internal combustion engines, as the regulation mandates zero CO₂ emissions rather than prohibiting ICE outright. In theory, this leaves room for carbon-neutral fuels. However, I find it unlikely that synthetic fuels or hydrogen will gain traction in such a short timeframe.

As a result, this highly controversial target will effectively phase out sales of new ICE-powered cars in the 27 EU member states. This week, the European Commission (EC)—the EU’s executive arm—reaffirmed its commitment to the goal first announced years ago: no new cars spitting out CO₂ emissions from 2035. Before that happens, emissions will have to go down by 55% by the end of this decade. However, things could still change: "The Commission will also accelerate work on the preparation of the foreseen review of the CO2 Standards Regulation for cars and vans."

In the meantime, automakers will receive support to help them meet intermediate targets. The CO2 goals set for 2025 are around 15% lower than the previous standards introduced in 2021. The change puts many companies at risk of paying huge fines for exceeding the fleet emissions targets. In January, the Volkswagen Group estimated it would have to fork out around €1.5 billion at the end of the year.

However, the EC plans to give automakers more time to meet lower CO₂ targets. Instead of enforcing the new rules in 2025, companies now have until 2027 to comply. The amendment allows manufacturers to meet their targets by averaging emissions over three years (2025–2027) rather than adhering to strict annual limits. Automakers will no longer face fines for exceeding emissions in a given year if their three-year average remains below the threshold.

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The EU also plans to help automakers accelerate the adoption of electric vehicles by supporting battery production. The so-called "Battery Booster" package worth €1.8 billion will provide direct funding to boost European production of battery cells and components. Additionally, a "Battery Raw Materials Access Entity" will simplify access to raw materials. The EU also aims to expedite the battery materials refining process and fund the development of new battery tech through a €1 billion program.

But what about us, the customers? The EU pledges to roll out more incentives and social leasing schemes for both new and used electric vehicles. Automakers are also trying to lure in more buyers by launching cheaper EVs, such as the Citroën e-C3, Volkswagen ID.1, and the Renault Twingo. Dacia is also cooking up an affordable electric city car priced at less than €18,000 to replace the Spring.

Some Want The Ban, Others Don't:

BMW Boss to European Union: Cancel the Combustion Engine Ban

Volvo Still Wants Europe to Ban Sales of New Gas Cars

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Source: European Commission

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