EU Proposals Could Limit EV Sales After 2035, Campaign Group Warns

Draft proposals circulating within the European Commission could significantly change the future landscape of electric vehicle (EV) sales across the EU after 2035, according to a leading clean-transport advocacy group.

Rather than enforcing a complete ban on new combustion-engine vehicles, the proposals would set a target to reduce carbon dioxide emissions from cars and vans by 90 per cent by 2035 compared with 2021 levels.

Under this framework, some high-emission vehicles - including advanced plug-in hybrid models - might still be sold, potentially limiting the share of battery-electric vehicles in the new car market.

The advocacy group Transport & Environment (T&E) argues that this change represents a notable retreat from previous EU climate ambitions and could dampen the pace of transport electrification.

Instead of requiring all new vehicles sold from 2035 to be zero-emission, the revised approach might mean that electric models account for as little as half of new sales, with the remainder made up of high-efficiency internal combustion and hybrid vehicles.

T&E warns that such outcomes could result in higher overall carbon dioxide emissions from the car fleet over the coming decades, complicating the bloc’s efforts to meet longer-term climate targets.

Proponents of the revised proposals in Brussels argue that the more flexible emissions target could reduce regulatory costs for automakers and help spur investment in a broader set of low-carbon technologies, including synthetic fuels and hybrid systems.

They also contend that allowing a degree of continued combustion-engine presence might provide manufacturers with a smoother transition path and support economic competitiveness. The Commission’s draft reflects ongoing political negotiations between member states, industry representatives and environmental advocates.

However, critics caution that weakening the EV transition framework could send mixed signals to consumers and investors just as global competition in clean automotive technology intensifies, particularly from regions with strong EV growth trajectories. As the proposed rules move through the EU decision-making process - including debate in the European Parliament and Council - their final design will shape how rapidly Europe’s transport sector decarbonises in the decades ahead.

Any weakening of the 2035 ICE phase-out fundamentally affects EV supply-chain investment cases and OEM strategic planning, and it changes what Scope 3 fleet-transition disclosure narratives can credibly promise. Our energy-transition and market-intelligence teams help clients evaluate what these regulatory scenarios mean for fleet and battery-supply-chain strategy.