EU’s Top Political Group Seeks to Dilute 2035 Combustion Engine Ban Amid Auto Sector Struggles

BRUSSELS — The European Parliament’s largest political group, the centre-right European People’s Party (EPP), is pushing to weaken the EU’s 2035 ban on combustion engine cars, proposing exemptions for biofuels and plug-in hybrids while delaying stricter CO2 targets, a draft policy reveals. The move amplifies pressure on Brussels to aid Europe’s auto sector, grappling with weak EV demand, Chinese competition, and potential U.S. tariffs.

Policy Reversal Demands

The EPP’s draft document urges reversing the 2035 phaseout to allow combustion engines running on alternative fuels and hybrid vehicles, arguing the current policy stifles industry competitiveness. It also seeks to soften 2025 CO2 limits, which automakers warn could trigger €15 billion ($15.8 billion) in fines. The group, backed by EU Commission President Ursula von der Leyen, demands an early 2025 review of the rules.

Industry Crisis

Renault CEO Luca de Meo, head of the European Automobile Manufacturers’ Association (ACEA), criticized the EU’s “unmet” pledges on charging infrastructure and incentives, stating fines would divert critical investment funds. The sector faces factory closures, job losses, and a looming threat of U.S. tariffs under President-elect Donald Trump.

EU Resistance

Despite mounting pressure, EU Climate Chief Wopke Hoekstra has defended the existing climate laws as “predictable,” though Brussels faces growing dissent after the EPP successfully delayed the bloc’s anti-deforestation law in 2023.

Broader Implications

The EPP’s campaign highlights tensions between Europe’s green transition and industrial survival, with critics warning backtracking risks undermining climate goals.