Proposal to ban internal combustion engines in Europe has been dropped by the EU

After proposing to ban cars powered by internal combustion engines (ICE), the European Union (EU) has dropped the original ban on combustion engines, set for 2035.

Under its new plan, the EU said that from 2035 onwards, automakers will need to comply with a 90% tailpipe emissions reduction target from 2021 levels. Meanwhile, the remaining 10% emissions will need to be compensated through the use of low-carbon steel that's made in Europe, or by using e-fuels and biofuels.

While it appears the EU softened its stance against ICEs, it also represents the automotive sector's pushback against the proposal. Moreover, the demand for electric vehicles (EVs) slowed down, with some automakers delaying the complete shift towards EVs. Some automakers have even switched to focusing on developing hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), as well as range-extended EVs (REEVs), which come with an engine that serves as an onboard generator.

With the EU dropping the ban on combustion engines for 2035 altogether, automakers are free to focus on PHEVs, REEVs, mild-hybrids, and ICEs, as they will still play a vital role beyond 2035. Combined with the fact that EV adoption among buyers is experiencing a slowdown and with most of the continent yet to embrace EVs, particularly Eastern Europe, the decision to drop the proposal seems to be a sound one.

Since the EU will no longer ban internal combustion engines beyond 2035, some automakers have breathed a sigh of relief. These include the likes of Ferrari and Lamborghini, wherein the Italian government said it would shield such brands from the proposed engine ban. Meanwhile, other automakers like BMW said they're ready for the combustion engine ban several years ago, although they have now adjusted to making cars that are available with ICE, EV, and PHEV powertrains.

Meanwhile, Ford backtracked on its original EV plans in North America as the company axed several EV models like the F-150 Lightning in favor of range-extended EVs and other electrified means of propulsion. The Blue Oval decided to go with its decision amid a weakening EV demand in the US, as well as the Trump administration's change in policies regarding EVs.

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