EU Scraps the Full 2035 Petrol Ban: 90% CO2 Target Keeps Hybrids, EREVs and E-Fuels Alive

Brussels blinks on the combustion ban

In December 2025 the European Commission unveiled a plan to drop the EU's effective ban on new combustion-engine cars from 2035, reported by Euronews on 16 December 2025. Instead of demanding a 100% cut in new-car fleet CO2 emissions by 2035 — which in practice meant electric or nothing — carmakers will need to cut fleet emissions by 90%. It is one of the biggest reversals in car policy this decade.

So, is the EU 2035 petrol ban scrapped outright? Not quite, and the distinction matters. The 90% target still forces the overwhelming majority of new cars sold in Europe towards zero-emission powertrains. What it removes is the absolutism. Hybrids, plug-in hybrids and range-extended EVs will be allowed to remain on sale past 2035, alongside an e-fuels pathway for combustion engines. The pure petrol-only supermini may still be living on borrowed time, but electrified combustion has been handed a reprieve.

There is a catch: the EU will review progress in 2026 and could revise the rules again, so treat nothing here as final.

What the 90% target actually allows

The practical difference between 100% and 90% is a cliff edge versus a steep hill. Under the revised plan, a slice of the market stays open to cars that still burn fuel — provided the fleet as a whole hits the 90% reduction.

That slice is expected to be filled by three technologies. Plug-in hybrids get an extended lease of life, which explains the plug-in hybrid comeback carmakers have been quietly planning. Range-extended EVs — electric cars with a small petrol generator on board — gain formal breathing room. And e-fuels, the synthetic petrol alternative championed by parts of the industry, get a recognised pathway; our synthetic fuels and e-fuels explainer covers how that technology works and why it remains contentious.

For buyers, the headline consequence is choice: a hybrid or EREV bought in the mid-2030s is no longer a regulatory dead end, as the rules stand today.

Why the EU 2035 petrol ban was scrapped

The reversal did not come out of nowhere. The change followed intense pressure from Germany and Italy, and from a European auto sector struggling against Tesla and Chinese EV makers. Manufacturers lobbied hard for flexibility, and Brussels gave ground.

The Commission has also pointed to practical headwinds. Charging-infrastructure and grid challenges were cited as reasons the 2026 review clause exists: if the rollout of chargers and grid capacity lags, the rules could shift again. That uncertainty is now baked into European car policy.

Not everyone is applauding. Transport & Environment warns the softening could slow emissions cuts and weaken EV and charging investment in Europe — the argument being that investment follows firm targets, and a target that moves invites hesitation.

The honest assessment

This is a pragmatic retreat, not a surrender. A 90% fleet CO2 cut by 2035 still implies a market dominated by electric cars; anyone declaring the EV transition dead is misreading the numbers. But the reversal has real costs: the absolute clarity investors and charging firms priced against is gone, and Transport & Environment's warning about weakened investment deserves to be taken seriously.

For drivers, though, the trade-off tilts positive. Hybrid and EREV buyers keep options past 2035, e-fuels get their day in court, and the 2026 review means the rules will at least be tested against reality rather than ideology. As of mid-2026, flexibility has won — whether the climate maths still works is the question that review will have to answer. This is policy reporting, not legal advice; national rules across Europe vary and remain in flux.

The questions buyers actually ask

Can I still buy a petrol-powered car in the EU after 2035? Under the revised plan, yes — but almost certainly an electrified one. Hybrids, plug-in hybrids and range-extended EVs remain on sale past 2035, and combustion cars running on e-fuels have a pathway. A conventional pure-petrol car is the least likely survivor, and the 2026 review could shift the goalposts again.

Does this mean EVs are finished in Europe? No. A 90% fleet CO2 cut by 2035 still points to an overwhelmingly electric new-car market. The change widens the remaining 10%, it does not reopen the whole market to combustion.

Should I delay an EV purchase because of this? There is no obvious reason to. The policy shift changes what carmakers must sell in 2035, not what suits your driving today. If an EV already fits your charging situation and budget, the case for it is unchanged; if it does not, hybrids now carry less long-term regulatory risk.

Key takeaways

• In December 2025 the European Commission moved to drop the EU's effective 2035 ban on new combustion-engine cars.
• The 100% zero-emission requirement becomes a 90% fleet CO2 reduction target for 2035.
• Hybrids, plug-in hybrids, range-extended EVs and e-fuel combustion cars can stay on sale past 2035.
• The reversal followed pressure from Germany, Italy and an auto sector squeezed by Tesla and Chinese EV makers.
• A 2026 review could revise the rules again; Transport & Environment warns the softening may slow emissions cuts and EV investment.