European Commission set to severely weaken 2035 combustion engine ban

By Jordyn Dahl, Gerardo Fortuna | 12/17/2025 06:27 AM EST

Under the latest deal, automakers could sell plug-in hybrids and range extenders after 2035.

The European Commission is set to water down the EU’s 2035 de facto combustion engine ban by requiring automakers to lower their emissions by 90 percent instead of the original 100 percent, multiple officials with knowledge of the discussions told POLITICO.

The change effectively marks the end of the ban, giving center-right political parties and the automotive sector a massive win after months of heavy lobbying.

Under the deal, which is still being negotiated at the time of publication, automakers can sell plug-in hybrids and range extenders after 2035. But those flexibilities will be tied to automakers “offsetting” the 10 percent extra emissions by using green steel and alternative fuels.

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How the offsets will work and what percentage of fuels or steel will need to be consumed in production is still being negotiated.

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