Compromise Reached on Phasing Out Internal Combustion Engine Cars in Europe

Political center parties of the European Parliament have agreed on a compromise that aims to soften the European Union's ban on the sale of new internal combustion engine vehicles starting in 2035.

According to the agreement, CO₂ emissions from new cars would need to be reduced by 87.5% by 2035 compared to 2021, rather than being completely eliminated. This would mean that new cars with internal combustion engines and hybrid engines could still be sold after 2035 without manufacturers facing the risk of incurring billions of euros in fines.

At the same time, the use of steel produced in a more climate-friendly manner in car manufacturing is expected to be promoted. In this case, manufacturers would be allowed additional CO₂ emission reduction deviations of 7.5 percentage points.

The compromise has not yet been officially approved. Relevant committees of the European Parliament will first vote on it, but it is likely that deputies will adopt their position in December during the plenary session.

Four years ago, the EU agreed that from 2035, new cars would no longer be allowed to produce greenhouse gas emissions while driving. In practice, this would mean that only new electric vehicles could be sold.

The European Commission proposed to soften this requirement at the end of 2025, suggesting a 90% reduction in CO₂ emissions from new cars by 2035. The leaders of Germany and France have also agreed on a similar approach.

After the European Parliament and the Council of EU member states have approved their positions, representatives of both institutions will be able to start negotiations on a final agreement.

Source: DER SPIEGEL, "EU-Parliament finds compromise on combustion engine phase-out", 20.10.2026.