Europe’s ambitious plan to phase out new combustion-powered cars by 2035 is facing another major setback. According to Reuters, France and Germany have agreed on a proposal that would significantly soften the European Union’s emissions requirements, potentially allowing gasoline-powered vehicles to stay on sale beyond the original deadline.
The agreement follows mounting pressure from automakers concerned about the cost of transitioning to electric vehicles. Slower-than-expected EV adoption in some markets has also raised questions about whether the industry’s original targets are realistic.
Under the EU’s original framework, new cars would effectively need to produce zero tailpipe CO2 emissions from 2035. The European Commission has already proposed relaxing that requirement, and France and Germany now want to take the changes further.
Their proposal would still demand substantial emissions reductions, but it would give manufacturers additional flexibility. However, nothing has been finalized, and the plan still needs approval from other EU countries and the European Parliament.
A 90 Percent Reduction Instead Of A Complete Phaseout
Under the Franco-German proposal, automakers would need to reduce vehicle CO2 emissions by 90 percent from 2021 levels by 2035, rather than the 100 percent reduction required under the original framework.
The European Commission previously proposed allowing the remaining 10 percent to be offset through measures such as low-carbon steel and alternative fuels. France and Germany want to eliminate those compensatory requirements entirely, making compliance less demanding.
Combustion Engines Could Survive Beyond 2035
The proposed changes could leave room for some new gasoline-powered and hybrid vehicles after 2035. France and Germany also want vehicles running on renewable and low-carbon fuels to receive more favorable treatment.
That doesn’t mean traditional combustion cars would suddenly return to business as usual. A 90 percent emissions reduction would still require widespread electrification, keeping EVs central to Europe’s automotive future.
Automakers Welcome The Breathing Room
Volkswagen welcomed the compromise, arguing that it would help manufacturers meet climate goals without undermining their competitiveness. German Chancellor Friedrich Merz also praised the agreement, while indicating that Italy broadly supports the proposals.
Environmental groups strongly disagree, warning that weaker targets could discourage investment in electric vehicles. Transport & Environment described the agreement as a serious mistake that could ultimately hurt Europe’s automotive industry.
The 2035 Rules Aren’t Settled Yet
The agreement also includes proposals for more flexible emissions-compliance periods and changes to European vehicle-content requirements. Those provisions could affect manufacturers operating across the EU and Britain.
France and Germany still need to secure support from other EU countries and the European Parliament before the proposals become law. Until that happens, the original 2035 emissions target stays in place.