The EU Commission has partially rolled back the planned 2035 combustion engine ban, which a study by the think tank Transport & Environment says could lead to higher CO₂ emissions and declining EV sales. The original 100 percent CO₂ reduction was softened to 90 percent, reducing the share of pure electric vehicles to 85 percent. Experts fear job losses in the German automotive industry.
The EU Commission caused a stir at the end of 2025 by deviating from the strict combustion engine phase-out. Originally, manufacturers were to reduce CO₂ emissions by 100 percent by 2035, which would have allowed only electric vehicles. Now, a 90 percent reduction compared to 2021 applies, pushing the share of battery-electric vehicles down to 85 percent. This permits the continued sale of classic combustion engines, hybrids, range-extender vehicles, and hydrogen drives.
A study by the Brussels-based think tank Transport & Environment (T&E), exclusively available to the RedaktionsNetzwerk Deutschland (RND), forecasts severe consequences. By 2050, the EU's backpedaling could cause an additional 720 million tons of CO₂ equivalent emissions—a ten percent increase compared to a full ban. The calculation includes credits for low-carbon steel from Europe, which emits less CO₂ in production than imported steel from China.
Last year, more hybrid and electric vehicles were registered across Europe than pure combustion engines, according to the European Automobile Manufacturers' Association (Acea), a trend experts attributed to the planned ban. Sebastian Bock, managing director of T&E Germany, criticizes: “It's like betting on multiple horses when only one is left in the race.” He warns that under the guise of technological openness, investments are being diverted to outdated technologies that harm the economy and climate. Bock fears: “This way, we lose the lead and long-term even more jobs in the German key industry.”
German Environment Minister Carsten Schneider (SPD) counters: “There is no reversal on the combustion engine phase-out,” he said in an interview with “Auto, Motor und Sport.” He warned car executives: “If our car managers believed that, it would be a big mistake.” The study highlights tensions between climate goals and industry interests.
