Brussels has no clear answer on what kind of car will be legal to sell in 2035. The European Commission’s plan to ban new combustion engine vehicles by that year has stalled. The vote set for October 5 disappeared from the agenda without fanfare. Officials now point to November 23 as the next possible date, but even that is uncertain. Official EU documents still require new cars to hit 0 g CO₂/km from 2035. Any move to relax this rule needs approval from both the European Parliament and the Council of the EU.
Politics is holding things up, not technology. Member states could not agree on changes to Regulation 2019/631, which sets CO₂ limits for new cars and vans. Wary of a public defeat, the Commission pulled the proposal before it could be voted down. The latest draft would ease the original target: instead of a 100% emissions cut from 2021 levels, it calls for a 90% reduction. The remaining 10% could be offset with credits from renewable fuels or low-emission steel made in the EU. Estimates linked to the Commission's project suggest that, if adopted, the proposal could allow internal combustion engines to account for approximately 27-29% of new car registrations after 2035. Several major European news outlets report that the European Parliament's transport committee delayed its vote by about two weeks. A full Parliament vote is now penciled in for November, but the date is not set.
This compromise is tangled. If it goes through, combustion engines could stay on the market after 2035, but only if carmakers can buy credits from two markets that barely exist. Europe has no real supply of renewable fuels or green steel at scale, so the offset system remains more theory than practice. Electrive.com says the mechanism for offsetting the remaining 10% has not been finalized as a definitive right to sell any combustion-engine vehicles. Using low-carbon European steel, biofuels or synthetic fuels as compensation remains under political negotiation, and the system's parameters are still being debated. The technical hurdles pale next to the political ones. The European People’s Party wants even more wiggle room. Meanwhile, a group led by Spain, France, Denmark, Luxembourg, the Netherlands, Sweden and Portugal says watering down the rules punishes companies that have already sunk billions into electrification. Germany, home to the continent’s biggest auto industry, is pushing back hard. Clean Energy Wire and other sources say France and Germany have discussed more flexibility for automakers and extra steps to shield European industry from Chinese rivals, but there is no formal EU move yet to cut the target to 80%.
For carmakers, this uncertainty is poison. As one industry saying goes, “A structure that gets postponed every quarter costs more than a strict one: the industry cannot plan products based on drafts.” Without clear rules, product teams can’t lock in five-year plans. Investments in battery plants and electric platforms are left hanging. This regulatory limbo began after manufacturers applied pressure in 2025, prompting Brussels to slow the original timeline. Since then, the process has drifted, leaving no solid ground for long-term bets. Official EU communications confirm that the current 2035 requirements remain in force until a new law is passed. Carmakers can’t count on any relaxation until it is signed into law.
The 90% target now on the table is a trap for everyone. Carmakers hoping to keep hybrids or combustion models alive after 2035 would have to buy credits in renewable fuel or green steel, markets that barely exist. The cost would land on buyers, not disappear. At the same time, the phased rollout of Euro 7 emissions standards is making life harder for combustion engines, just as the CO₂ rules remain uncertain. The two sets of rules are out of sync, adding to the confusion.
The real fight is between Berlin and Madrid. Germany, where the auto sector is woven into the economy, wants more time. Spain, France and their northern partners argue that only a clear calendar justifies the billions already spent on electric vehicle infrastructure. Both sides have their reasons, but their goals clash. One fears losing production now; the other worries about falling behind in technology. Clean Energy Wire reports that a blocking group of countries, France, Spain, Sweden, Denmark, Luxembourg, the Netherlands and Portugal, has pushed back against further weakening the rules, saying it would punish companies that have already invested in electrification.
The price of indecision is already showing. In 2023, the 100% emissions cut looked set in stone. Two years later, reopening the law under industry pressure has sent a damaging message: in Europe, no target is ever final. This shakes faith in future regulation. China, by contrast, has enforced quotas and credit systems with clear timelines for years, giving its industry the predictability Europe now lacks. The rules' credibility depends on whether they stick.
Automakers have started to pause or rethink electrification plans as demand falls short. When both regulators and buyers hesitate, producers hold back. This hidden cost never shows up in legislative texts, but it shapes the real economy. As reported earlier, uncertainty over EU policy has already sparked calls for stronger guarantees for investment in Spain’s electric vehicle sector.
Pushing back the October vote may not change the arguments, but it chips away at trust in the process. If the November 23 session slips again, automakers will face the 2027-2028 product cycle with two clashing scenarios: one demanding full commitment to electric vehicles, the other allowing a slower shift. Designing for both is expensive, and betting wrong could shutter entire factories. The next vote will be critical, while time lost by R&D teams chasing a moving target is gone for good.
Market data shows the current proposal would cut the CO₂ reduction from 100% to 90% by 2035, shifting the last 10% to credits in renewable fuel and green steel, two sectors with no real scale today. In Brussels, many expect the November vote to bring a wave of amendments, with the European People’s Party pushing to raise the compensable share above 10%. Europe’s problem is that it has spent a year without a clear structure for its 2035 ambition. In this climate, regulatory uncertainty does more damage than the toughest rulebook.
