EU Stands Firm on Ban of New Gasoline and Diesel Cars—But Loosens Some Deadlines

The European Union is standing strong on its decision to ban the sale of new gasoline and diesel cars by 2035, sticking to its plan of ensuring that all new vehicles registered by that date produce zero CO₂ emissions. This bold move is part of the EU’s larger strategy to fight climate change and achieve climate neutrality by 2050.

Since road transportation makes up about one-fifth of the EU’s total CO₂ emissions, cutting down on car and van emissions is a major focus of the EU’s efforts to reduce its carbon footprint. To meet its shorter-term goals, the EU plans to reduce car emissions by 55% and van emissions by 50% by 2030, using 2021 levels as a baseline.

Although the 2035 ban on gasoline and diesel cars is still firmly in place, the EU has recognized that car manufacturers are facing significant challenges in meeting the strict emission reduction targets. To make the transition easier, the European Commission (EC) has decided to adjust some of the deadlines. Originally, carmakers were supposed to meet lower CO₂ emission targets by 2025, but this deadline has now been pushed to 2027.

This change gives manufacturers more flexibility by allowing them to average their emissions over a three-year period (2025-2027), rather than having to meet strict annual limits. This adjustment helps reduce the pressure on automakers and lowers the risk of them facing large fines for exceeding emission limits in any single year. Previously, failing to meet these limits could result in heavy penalties. For example, in January 2025, the Volkswagen Group estimated that it could face fines of up to €1.5 billion if it didn’t meet the 2025 targets.

While the financial risks for carmakers are still significant, the revised timeline helps ease some of the immediate pressure. Although automakers could still face hefty fines if their three-year average emissions exceed the set limits, the EC is also offering support to help the industry shift toward electric vehicles. One major initiative is the “Battery Booster” package, which involves a €1.8 billion investment to boost the production of battery cells and components in Europe.

Additionally, the EU is creating a “Battery Raw Materials Access Entity” to ensure easier access to the raw materials needed for battery production. This effort is part of a broader plan to strengthen the EU’s battery industry and reduce its dependence on foreign suppliers. The EU is also investing €1 billion to improve the refining of battery materials and develop advanced battery technologies.

The EU is also considering how this ban will affect consumers. To make electric vehicles more affordable and accessible, the EU is increasing incentives and introducing social leasing programs for both new and used electric cars. Car manufacturers are also playing their part by launching more affordable electric vehicle models, such as the Citroën e-C3, Volkswagen ID.1, and Renault Twingo. Dacia is working on an electric city car that will cost less than €18,000, making it a budget-friendly option. These efforts are designed to make the switch to electric vehicles less financially challenging for consumers.

However, there are still obstacles to overcome, such as building a stronger market for secondhand electric vehicles and expanding the charging infrastructure across the EU. Despite these challenges, the EU’s policies are aimed at making the transition to electric vehicles smoother and more affordable for everyone. The ultimate goal is to ensure that by 2050, all cars on the road will be effectively carbon-neutral. Achieving this will require not only strict regulations but also significant investments in sustainable technologies.