End of the ban on combustion engines after 2035? There is a breakthrough compromise in the European Parliament

As established by an RMF FM journalist, negotiators from the largest faction of the European Parliament - the European People's Party (which includes, among others, the German CDU and CSU as well as the Polish KO and PSL), the Socialists and Democrats (S&D) and the liberal group Let's Renew Europe, reached a compromise on the CO₂ emission targets for new cars on the night from Monday to Tuesday. The agreement allows for further sales of cars with combustion and hybrid engines after 2035, under certain conditions. And this opens the way to an agreement among the entire EU.

The essence of the compromise is to relax the CO₂ emission reduction target. Instead of reducing CO₂ emissions from new passenger cars to zero by 2035, there is to be a reduction of 87.5%. compared to the 2021 level. The basic requirement would be 95%. reduction compared to the 2021 level, however, the use of low-emission steel produced in Europe would allow producers to be more flexible and lower the required reduction level to 87.5%.

In practice, this would mean the possibility of continuing to sell some new cars with combustion and hybrid engines after 2035 if manufacturers meet certain conditions.

The existing regulations assumed that from 2035, new passenger cars and commercial vehicles registered in the EU would have to achieve zero CO₂ emissions from the exhaust pipe.

Steel, fuel and smaller cars

The compromise also envisages the use of low-emission steel produced in Europe. This is intended to support European steel mills and at the same time give car manufacturers an additional way to meet climate goals.

The plan also includes special incentives for small cars, changes in emissions settlement in individual years and solutions for selected fuels. The changes will also cover delivery vehicles and the rules for calculating plug-in hybrid emissions.

“No more bans” – but not immediately

Dariusz Joński emphasizes that the agreement is intended to provide consumers with greater freedom in choosing drive technology.

"No more bans!" – says the MEP. As he points out, it is also about protecting thousands of jobs in the European automotive industry. The point is that the European automotive industry is facing a serious crisis.

Manufacturers are under pressure from high tariffs in the US and growing competition from China, they are cutting costs and eliminating jobs. The dispute over the regulations for 2035 concerns not only the climate, but also the future of European factories and thousands of people employed in the industry. The final scope of permitted solutions will depend on the adopted regulations and conditions that producers will have to meet.

What's next?

The negotiators' agreement must be approved at the next stages of the procedure in the European Parliament.

A vote on the position of the entire European Parliament is planned for December. Member States must also agree on their position. France and Germany support reducing CO₂ emissions by 90%, but without the possibility of compensating part of the emissions using green steel. This distinguishes their proposal from the MEPs' compromise. Negotiations between Parliament and member states could start in early 2027.