Europe Just Backed Off Its 2035 Gas Engine Ban and Here’s Why American Buyers Should Pay Attention

The EU 2035 combustion engine ban has been lifted and will likely not be revisited until EVs are more compatible with the majority of drivers.

There’s nothing wrong with driving an electric vehicle, but most drivers would rather not be forced into them. Currently, EVs can’t provide the same benefits as combustion engines, and that problem isn’t limited to the United States. Even in Europe, EVs are having trouble catching on as the go-to powertrains for vehicles. Without the same access to charging stations as gas stations, higher costs for EVs, and the limited driving range, most drivers aren’t ready to transition to EVs yet.

European emissions regulations have to be rethought

The EU just made a huge pivot on its 2035 combustion engine ban, and this isn’t just European news. Instead of forcing automakers to go 100% electric, they’re now allowing a 90% emissions cut with wiggle room for plug-in hybrids, e-fuels, and even traditional engines beyond 2035. This comes after intense pressure from Germany, Italy, and major automakers who argued they can’t compete with China under the old rules.

What does this mean for American car shoppers? Global platforms, shared technology, and market strategies that cross borders. When European automakers get breathing room to develop plug-in hybrids and alternative fuels instead of going all-in on batteries, those same vehicles and powertrains show up in US showrooms. The shift also signals that the EV timeline everyone was betting on might not be as locked in as we thought. With Europe pumping the brakes on full electrification, US manufacturers watching closely might feel less pressure to abandon proven technologies before buyers are actually ready to switch.

The movement in reverse makes sense

Many automakers capitalized on the immediate surge of demand for EVs, which created an unrealistic electric vehicle adoption timeline. Transitioning directly from gasoline-powered combustion engines to the unproven technology of EVs was a huge gamble that paid off for a short time. In reality, the movement should have been from gas to hybrid to plug-in hybrid vehicles before reaching electric vehicles. The reduced requirement in Europe isn’t the only and first automotive industry policy change to take effect. Going forward, e-fuels and alternative fuels can be developed without the requirement to go all-in on battery technology.

The reversal of the EU 2035 combustion engine ban opens lots of doors

Instead of strictly developing battery-electric global automotive platforms, most automakers can now focus on simply reducing emissions while allowing gas-powered engines to be part of the mix. There’s a good chance diesel engines won’t be long for the market in Europe, but that’s to be expected considering the higher emissions produced by diesel engines.

A tragic win for traditional cars

Although Tesla, Rivian, and many Chinese automakers have already shown how to create and sell large quantities of EVs, European automakers claim they can focus on lowering emissions and consider alternative fuels that aren’t electric. This could be the right choice, although it’s more likely that most automakers will focus on building better plug-in hybrids, which use gasoline and electric motors for power. Still, leaving room for hybrids, PHEVs, and traditional cars that meet emissions standards is a big win for traditional cars and a bit of a tragedy for EVs. Some automakers might not be ready to celebrate this as a win, considering the amount of money already invested in EVs.

How will the EU 2035 combustion engine ban changes be met?

Instead of banning gas and diesel engines altogether, the proposal, which still requires approval, shifts to a 90% cut in CO2 emissions from 2021 levels. That is a significant change from a complete ban of all combustion engine cars in 2035. Automakers must offset the remaining emissions during their manufacturing processes, using lower-carbon steel and synthetic e-fuels or non-food biofuels. Automakers will have a three-year window from 2030 to 2032 to cut emissions by 55% from 2021. This change allows automakers to focus on emissions and not EVs.

The green policy was reversed but made stronger

The reversal of the EU 2035 combustion engine ban sounds like a win for traditional vehicles, but automakers must still reduce emissions by large percentages. While this is a bit of a reversal of the EU’s green policies, it makes a lot of sense for everyone involved. Emissions will be cut, and automakers have the flexibility to focus on vehicles that are still powered by gas engines, but most will likely have electric motors and battery packs.

Will we see European models that fall under this new change in the United States? Most likely, the answer is yes.