Key Facts
• On December 16, the EU announced a revision to its 2035 engine car sales ban.
• Original plan aimed for a 100% CO2 emissions reduction by 2035 compared to 2021 levels.
• New proposal reduces the target to a 90% reduction, allowing engine car sales.
• The remaining 10% emissions will be offset using biofuels.
• The revision follows slow EV demand and intensified competition from Chinese manufacturers.
• Germany, home to major automakers, led calls for policy adjustments.
Summary
The European Union (EU) has revised its plan to ban the sale of new engine cars by 2035. Initially, the EU aimed for a 100% reduction in CO2 emissions from vehicles by 2035, compared to 2021 levels. However, the new proposal relaxes this target to a 90% reduction, allowing the continued sale of engine cars. The remaining 10% of emissions will be offset through the use of biofuels. This policy adjustment comes amid slow growth in electric vehicle (EV) demand and increasing competition from Chinese automakers. Germany, a key player in the automotive industry, has been a strong advocate for revising the original plan.
