Home

News

Industry

EU Moves Closer To Keeping Gas Cars Alive After 2035. Here's What's Changed

The latest deal loosens the proposed emissions targets, giving ICE more room to survive beyond the middle of the next decade.

Car Exhaust

Adrian Padeanu

By: Adrian Padeanu

Oct 21, at 3:06am ET

Add Motor1.com as a preferred source in Google

Comment

Europe's combustion-engine reprieve is taking shape, but the latest proposal goes further than the European Commission's original plan. A new agreement between lawmakers would give automakers more flexibility to keep selling ICE-powered vehicles after 2035, marking another retreat from the bloc's original, and rather unrealistic, zero-emissions target.

The compromise, reached by representatives of the European People's Party (EPP), the Socialists and Democrats (S&D), and Renew Europe, would require automakers to reduce average CO₂ emissions from new cars by 87.5 percent compared with 2021 levels by 2035. That's less stringent than the European Commission's proposal from last December, which called for a 90 percent reduction.

The new arrangement would allow manufacturers to use credits for low-carbon steel produced in the EU to offset part of their emissions obligations. This would effectively preserve room for combustion-engine and hybrid vehicles beyond 2035. However, the final rules would determine exactly how many and what types of vehicles could remain on sale.

It's an important distinction from last year's announcement. While the Commission's December 2025 proposal already backed away from the original 100 percent emissions-reduction target, the latest parliamentary compromise would loosen the proposed requirements further.

What Changed Since December 2025?

Under the rules adopted in 2023, the EU set a highly controversial 100 percent reduction target for CO₂ emissions from new cars and vans by 2035, effectively ending the sale of new tailpipe-emitting vehicles from that point onward. Existing gasoline and diesel cars would not have to be taken off the road.

After sustained pressure from automakers and governments, particularly Germany and Italy, the European Commission proposed a softer approach in December 2025. Instead of requiring a complete reduction in average fleet emissions, it proposed a 90 percent cut from 2021 levels, with the remaining 10 percent offset through measures involving low-carbon steel and renewable fuels.

That proposal would have allowed some plug-in hybrids, range-extender vehicles, and other combustion-engine models to remain on sale, provided manufacturers met the applicable emissions requirements and compensation rules.

2023 Porsche Macan T exhaust

2023 Porsche Macan T exhaust

Automakers Would Have More Wiggle Room

The latest compromise takes a different route. Instead of retaining the proposed 90 percent reduction, lawmakers have agreed on an 87.5 percent target for cars, with credits for EU-produced low-carbon steel accounting for up to 7.5 percentage points.

In other words, the deal would give carmakers more room to comply with the rules while supporting Europe's domestic steel industry. The framework seeks to balance the automotive sector's calls for greater flexibility with efforts to maintain European manufacturing and reduce industrial emissions.

The distinction matters because the December 2025 announcement was a European Commission proposal, not a finalized replacement for the existing legislation. The October 2026 agreement is another step in the legislative process, with lawmakers seeking to further loosen the proposed requirements.

2020 Alfa Romeo Giulia Quadrifoglio's V6 engine

2020 Alfa Romeo Giulia Quadrifoglio's V6 engine

Combustion Engines Aren't Getting A Free Pass

Although the latest compromise would weaken the effective phase-out, it wouldn't give automakers unrestricted permission to sell gasoline and diesel cars indefinitely. The emissions targets apply to a manufacturer's new-vehicle fleet average rather than setting a universal emissions limit for every individual model. Automakers would therefore have to balance higher-emitting vehicles with lower-emission alternatives and comply with the final calculation and credit rules.

That could give plug-in hybrids, range-extender EVs, and other combustion-engine vehicles a longer future in Europe. However, the extent of that opportunity would depend on the final regulation, the credits available, and each manufacturer's fleet emissions. EVs would remain central to automakers' efforts to meet the requirements. The compromise would leave more room for other powertrains than the original 100 percent reduction target allowed.

The agreement also proposes a 55 percent reduction in average car emissions by 2030, while the target for vans would fall to 35 percent. The Commission's earlier proposal had set a 40 percent reduction target for vans. The compromise would also allow additional flexibility through multi-year compliance arrangements and credits for certain efficient or smaller electric cars.

2022 McLaren 765LT Spider exhaust

2022 McLaren 765LT Spider exhaust

The Deal Still Needs To Become Law

The latest agreement is not the end of the legislative process. The participating parliamentary groups must formalize their position, after which the European Parliament and EU member states will need to negotiate the final legislation.

Until that process is complete, the existing 2035 emissions target remains the legal baseline. Automakers can prepare for a more flexible framework. Still, they cannot yet treat the compromise as a guarantee that every type of combustion-engine vehicle will remain on sale after the deadline.

For Europe's automotive industry, the direction is becoming clearer. The EU is moving away from a strict zero-emissions requirement toward a framework that allows continued sales of some combustion-engine vehicles while maintaining pressure to reduce fleet emissions.

The 2035 ICE Ban:

The EU's Decision to Cancel 2035 Combustion Engine Ban Leaves Automakers at Odds

Stellantis Is Against The EU's 2035 Combustion Engine Ban

What do you think?

View

Comments

The difference between December 2025 and October 2026 is more than a change in wording. The Commission first proposed a 90 percent reduction target with compensation mechanisms. Lawmakers have now backed a lower 87.5 percent reduction requirement for cars, with credits tied to low-carbon steel produced in the EU.

That doesn't mean Europe's transition to electric vehicles is over. It means the rules governing how quickly combustion engines disappear from new-car showrooms are still being renegotiated.

We want your opinion!

What would you like to see on Motor1.com?

Take our 3 minute survey.

- The Motor1.com Team

Share this Story

GO TO COMMENTS

(

)

Got a tip for us? Email: tips@motor1.com

View all comments ( )

Popular

12 Cars With Names That Make Absolutely No Sense

BMW Kept This Hatchback A Secret For Decades

Bugatti Restores One-Off Veyron With A Mirror-Like Aluminum Body

EU Moves Closer To Keeping Gas Cars Alive After 2035. Here's What's Changed