EU Eases 2035 Combustion Engine Ban: Emissions Reduction Target Adjusted from 100% to 90%

[Policy Adjustment] On December 16, the European Commission announced it would relax the 2035 new car CO₂ emissions target from a '100% reduction compared to 2021 levels' to 90%, effectively removing the mandatory ban on sales of all internal combustion engine vehicles.

⚡ Core Development: Substantial Loosening of the Combustion Ban, Yet Emissions Floor Remains

The new proposal permits automakers to offset the remaining 10% of emissions by using EU-produced low-carbon steel, synthetic fuels, or non-food-based biofuels, replacing the previous blanket zero-emission requirement. This marks another major concession to the automotive industry following the 2023 greenlighting of vehicles powered by synthetic fuels.

📊 Key Data: Lagging Electrification Progress Intensifies Transition Pressure

As of October 2025, battery electric vehicles (BEVs) accounted for 16.4% of the EU market share—up from 13.2% in 2024 but still far below the pace needed to meet climate targets. The European Automobile Manufacturers' Association (ACEA) openly stated that the current transition is "falling short of expectations."

🔍 Strategic Underpinnings: A Delicate Balance Between Industrial Employment and Environmental Goals

Faced with widespread layoffs and profitability crises in the automotive sectors of countries like Germany, the EU has opted for compromise under pressure to protect 13.6 million related jobs, highlighting its difficult trade-off between climate ambition and industrial realities.