The European parliament’s environment committee has paved the way for the bloc to go even further in weakening emissions rules by approving a lower CO2 target for 2035. 

The European Commission started late last year by proposing to stop the planned petrol and diesel ban in favour of a 90% emissions cut that would allow combustion engines to stay on sale. 

EU moves to weaken 2035 petrol and diesel car ban

Last week the parliamentary environment committee voted to accept a plan from the three biggest parties in the chamber to introduce an 87.5% cut in emissions for 2035. 

Part of the difference (7.5%) would be made up by the use of EU-produced low carbon steel that is more recyclable than traditional steel and is usually made in electric arc furnaces rather than coal-fired furnaces. 

Carmakers selling in the EU would also benefit from a number of flexibilities, including extra credits for small or very efficient EVs. 

The proposal allows the final gap to the original 100% target to be made up by the use of biofuels, though it’s not clear on what scale this could be achieved, and substantial use of biofuels would require current petrol and diesel engines to be redesigned. 

The European Union has buckled under pressure from the French and German governments to relax the proposed petrol and diesel ban for 2035 – the economies of both countries are heavily reliant on car companies for their continued health. 

Sales figures for the third quarter of 2026 showed that EV sales in the EU have outpaced pure petrol cars for the first time in the year so far. 

Could new EU rules add €2,000 to the price of an electric car?

The decision has also brought attention to a recent report by Brussels-based think tank Bruegel, which warned earlier this year that weakening the targets would slow both the development of charging infrastructure and the economies of scale that will make batteries cheaper. 

Bruegel also warned that the EU proposal would push up car prices for consumers, the low-carbon steel requirement adding €200 (£170) per car and the cost of EU-built batteries adding €2,100 (£1,750) to an average 60kWh EV. 

Even with regulatory savings and the scale of producing EVs in the European Union, Bruegel estimates that the proposals for 2035 will add over €2,000 (£1,700) to the cost of a car in the EU. 

What happens next? 

The European Parliament hasn’t yet voted on the proposals for 2035, and after that there will need to be negotiations with European member states as to whether they agree to the plans. 

The news comes as the UK government is expected to announce plans to soften electric car targets for carmakers in Britain.