The end of the combustion engine

19.12.2025

Source: E & M powernews

Our Brussels correspondent Tom Weingärtner comments on energy policy issues from the EU Parliament, the EU Commission and associations in his column "Inside EU Energy".

Petrol and diesel cars will probably still be able to be registered in the EU after 2035. The EU is no longer relying solely on electric cars. This should support the struggling car manufacturers, said Commission President Ursula von der Leyen on December 16: "Technological innovations are changing mobility and geopolitical developments are shaping global competition." The EU continues to claim to be at the forefront of the global transition to clean technologies.

Conservatives and Greens doubt that it really is, albeit for different reasons. The latter accuse car manufacturers of not consistently focusing on electric vehicles and falling behind the Chinese competition. Conservative-governed countries such as Germany, Italy and the Czech Republic, on the other hand, blame the sluggish business of the car industry on unrealistic targets from Brussels. In recent weeks, they have exerted considerable pressure on the Commission to soften the ban on combustion engines from 2035, which had actually already been decided.

More flexibility, but also stricter requirements

It is not yet possible to say with certainty to what extent this has been successful. A comprehensive "car package" presented by the Commission on December 16 gives technologies other than e-vehicles a chance, but probably does not fulfill all the wishes of the automotive countries. The industry is facing numerous new requirements. As a consolation, the Commission is proposing a series of simplifications. The Commission claims that this could save the industry around 700 million euros a year. For example, certain tests for new vehicles are to be carried out less frequently.

The core of the "car package" is to give the industry more technological flexibility. Until now, manufacturers have had to reduce emissions from new vehicles by 100 percent by 2035 compared to 2021. The Commission is now proposing that emissions only have to be reduced by 90 percent, while 10 percent can be offset by manufacturing new vehicles from "green" steel and using climate-neutral fuels. Suppliers of commercial vehicles will also be given more flexibility in meeting emissions standards.

In addition to making things easier for suppliers, the car package is also intended to boost demand. In particular, the Commission is introducing a new vehicle category, the "small affordable electric car". This is intended to create a strong incentive to build small vehicles that low-income consumers can also afford. The car industry will receive "super credits" for the sale of small electric cars, i.e. credits towards meeting their climate requirements. The Commission also expects the member states to provide additional incentives to support the sale of small cars.

Company fleets should demonstrate a certain proportion of e-cars

Company vehicle fleets should also have more e-cars in future. Member states must use quotas, tax benefits or other incentives to ensure that the proportion of electric cars increases. Because company vehicles cover more kilometers per year, this also means a higher reduction in emissions. Private consumers would benefit from this by stimulating the used car trade, according to Brussels.

E-vehicles would remain the main pillar of the decarbonization of transport, said Climate Commissioner Woepke Hoekstra. In order to make Europeans more competitive in construction, the Commission is providing 1.8 billion euros for the development of a fully European value chain for batteries, 1.5 billion euros of which is in the form of interest-free loans.

Hoekstra was unable to say exactly what effect the package of measures will have on the industry. First of all, it is important that the car package is passed quickly. This wish may not come true. Although the Social Democrats see the future in electromobility, they support making the transition more flexible. Resistance comes primarily from the Greens. The internal combustion engine is an obsolete model and will further weaken the competitiveness of the European car industry. The Commission's proposals are "a fatal signal of uncertainty for consumers, industry and climate protection", says MEP Michael Bloss (Greens).

For the Conservatives, on the other hand, the ban on combustion engines is "a mistake that is now being corrected". MEP Jens Gieseke (CDU) says that the EU is thus embarking on a course that "takes equal account of climate protection and industrial competitiveness". However, the Commission's proposal is only "the starting point for a final course correction".

Author: Tom Weingärtner