The shift in EU zero-emission vehicle (ZEV) policy is relevant in Britain, primarily due to the integrated nature of the automotive market and the UK having its own, historically more ambitious, Zero Emission Vehicle mandate.
In a landmark policy shift, on 16th December 2025, the European Commission proposed a significant adjustment to the 2035 ban on internal combustion engines. Moving away from a 100% electric mandate, the new Automotive Package introduces flexibility to protect the European economy.
Key Changes
- The 90% Target: Instead of a total ban, the EU now proposes a 90% reduction in CO₂ emissions by 2035. This allows a 10% ‘flexibility gap’ for highly efficient hybrids and combustion engines.
- The Offset System: To use that 10% gap, manufacturers must earn credits by using EU-produced green steel or investing in synthetic e-fuels and advanced biofuels.
- Small Car ‘Super-Credits’: To combat cheap imports, the EU will grant extra compliance points to brands building affordable, small EVs within Europe.
Why the Change?
The revision acknowledges three major hurdles:
- Consumer Resistance: Slow EV adoption due to high prices and lagging charging infrastructure.
- Global Competition: The need to help European car makers scale up against lower-cost Chinese rivals.
- Industrial Protection: Safeguarding thousands of jobs within the traditional engine supply chain.
Impact on the Market
- For Buyers: Expect a wider variety of powertrain choices (like Plug-in Hybrids) past 2035, though electric will remain the primary focus.
- For Manufacturers: The ‘hard stop’ has turned into a managed transition, allowing legacy brands to pivot their factories at a more sustainable pace.
- For the Environment: While the 10% buffer allows for some emissions, the push for ‘green steel’ aims to decarbonise the entire manufacturing supply chain, not just the exhaust system.
Feature | Original 2035 Target | Revised 2035 Proposal |
CO₂ Reduction | 100% (Zero Emission) | 90% |
Combustion Engines | Effectively Banned | Allowed (via offsets/hybrids) |
Offset Options | None | Green steel, e-fuels, biofuels |
Small Car Support | Standard | ‘Super-credits’ for EU-made small EVs |
The proposal now moves to the European Parliament and member states for formal approval. While the direction is still toward a cleaner future, the ‘hard stop’ for the internal combustion engine has officially been replaced by a managed path.
Whether you have a normal combustion engine, electric, or hybrid vehicle, we at Treadfirst will be here to maintain and service you and your family’s vehicles.
