EU set to soften 2035 zero-emissions car rule, senior MEP says

The EU is expected to soften its 2035 requirement for zero-CO₂ new cars, potentially allowing plug-in hybrids to remain on sale under a 90% fleet CO₂-reduction target. For recyclers and ELV stakeholders, a longer hybrid era would prolong mixed powertrain flows, affecting depollution, parts markets and future investment in high-voltage handling.

Fuel pump nozzles at a filling station, including diesel and petrol dispensers, illustrating the EU debate on the 2035 combustion-engine phase-out. p — Image credit: Envato Elements

The EU’s planned 2035 end-date for new petrol and diesel cars looks set to be watered down, according to a senior European Parliament politician, in a move that would please parts of the automotive industry but anger environmental campaigners. The change, expected to be unveiled by the European Commission on Tuesday in Strasbourg, matters for the ELV (end-of-life vehicle) chain because it could extend the life of hybrid powertrains in Europe’s vehicle parc, shaping future dismantling volumes, parts demand, and material streams.

What could change in the 2035 rule

Under the deal approved two years ago, all new cars sold from 2035 would have to be zero CO₂ emissions, effectively ending sales of hybrids as well as vehicles running solely on fossil fuels. Environmental groups argue any retreat would amount to a “gutting” of the EU’s flagship Green Deal.

Manfred Weber, an MEP and of the European People’s Party group, told Germany’s Bild that the 2035 cut-off would be softened next week. “The technology ban on combustion engines is off the table,” he said. “All engines currently manufactured in Germany can therefore continue to be produced and sold.”

Weber suggested the EU would pave the way for continued sales of plug-in hybrid cars, including “powerful hybrids with long ranges”, but with a combustion engine as back-up for long journeys (for example, more than 373 miles/600km). He added: “For new registrations from 2035 onwards, a 90% reduction in CO₂ emissions will now be mandatory for car manufacturers’ fleet targets, instead of 100%.”

Political and industry pressure builds

The German chancellor, Friedrich Merz, the Italian prime minister, Giorgia Meloni, and much of the car industry have lobbied for the ban to be changed to allow continued hybrid sales. Volkswagen, Stellantis, Renault, Mercedes-Benz and BMW have argued that consumers are not taking up EVs in the numbers anticipated when the 2035 date was agreed in 2022.

Weber framed the shift as an industrial signal: it would be important “to the entire automotive industry and secures tens of thousands of industrial jobs”, reflecting concerns about the future of one of Europe’s most important manufacturing sectors.

Opposition from greens — and some OEMs

The move is opposed by green politicians and also some manufacturers, including Volvo and Polestar, which argue that shifting the 2035 cut-off for traditional combustion engines would hand a further advantage to Chinese rivals.

A European Commission spokesperson, Paula Pinho, said on Friday that the 2035 deadline was “still being discussed”, adding that Commission Ursula von der Leyen has said several times there is a clear demand for “more flexibility on the CO₂ targets”.

What it means for recyclers and ELV stakeholders globally

If hybrids remain on sale longer, Europe’s future ELV mix could tilt towards more complex multi-powertrain vehicles for longer. For authorised treatment facilities (ATFs), that typically means more varied depollution and dismantling procedures, a different spread of reusable components, and a longer tail for ICE-linked parts demand alongside rising flows of high-voltage components. Outside Europe, regulators and producer responsibility organisations will watch closely: EU timelines often influence global product planning, secondary-material demand, and investment decisions in dismantling, battery handling, and plastics recycling.

Small-EV incentives and the market backdrop

Reports also suggest the EU will propose measures to incentivise Europeans to make and buy small EVs, partly to curb the growing presence of Chinese electric cars. A “made in Europe” small-EV incentive could take inspiration from Japan’s tax and insurance breaks for electric kei cars.

Norway, Europe’s highest EV adopter, used VAT and purchase tax exemptions plus 50% road toll fees to drive adoption. In 2025, more than 90% of new cars sold there were electric; almost 30% of all cars are now electric, compared with Italy, where EVs account for 12% of the market, according to figures for November.

Source www.theguardian.com