The European Commission unveiled a plan on Tuesday to drop the EU’s effective ban on new combustion-engine cars from 2035 after pressure from the region’s vehicle sector, marking the bloc’s biggest retreat from its green policies in recent years.
The move, which still needs approval from EU governments and the European Parliament, would allow continued sales of some non-electric vehicles. Carmakers in regional industrial powerhouse Germany and in Italy had sought easing of the rules.
The EU executive appears to have bowed to calls from carmakers to keep selling plug-in hybrids and range extenders that burn fuel as they struggle to compete against Tesla and Chinese electric vehicle makers.
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“Opening up the market to vehicles with combustion engines while compensating for emissions is pragmatic and in line with market conditions,” said Germany’s Volkswagen, Europe’s biggest carmaker by volume.
It added that the draft proposal for new CO2 targets was “economically sound overall”, and lauded support for small electric vehicles and more flexible targets for 2030.
Dominic Phinn, head of transport at non-profit group Climate Group, countered that the measures were a “tragic win” for the traditional industry over electric cars.