• The EU has revised its 2035 ban on new combustion engine cars, allowing some sales post-2035.
• The move is viewed as a response to challenges faced by the auto industry amid competition from EV makers.
• Environmental groups criticize the relaxation of emission targets, fearing setbacks in climate policies.
• Carmakers will still be required to cut emissions by 90% compared to 2021 levels, rather than achieving 100% reduction.
• The adjustment includes measures to support electric vehicle uptake among corporate fleets and investments in green technologies.

The European Union announced a significant shift on December 16 by relaxing its ban on new petrol and diesel cars effective 2035, which had been a cornerstone in its efforts tackling climate change. Instead of a total shift to electric vehicles (EVs), automakers will now only need to reduce emissions from new vehicles by 90% compared to 2021 levels, allowing some combustion engine sales to continue post-2035. This decision was made in response to pressures from the automobile sector, especially in industrial strongholds like Germany and Italy, facing fierce competition from EV leaders like Tesla and Chinese manufacturers, according to Le Monde and India Times.

Stéphane Séjourné, the EU's industry commissioner, labeled the alterations as a "pragmatic" solution that maintains the bloc's green ambitions while adapting to industry realities. The Commission's move follows warnings from industry leaders of potential job losses and declining competitiveness if stricter emissions targets were enforced, illustrating the ongoing challenges the auto sector faces, according to India Times and South China Morning Post.

Under the new plan, carmakers can continue selling a select number of polluting vehicles while compensating the remaining emissions with low-carbon steel and alternative fuels. The EU has also proposed implementing easier targets for van emissions, reducing the interim 2030 target from 50% to 40%. This evolution has sparked significant concern among environmentalists, who argue that such concessions undermine the EU's climate strategy and could derail investments in EV technology, as highlighted in reports from South China Morning Post and Le Monde.

Critics, including environmental advocacy groups, assert that the adjustments are a setback for the continent's automotive transition towards electrification, arguing that reducing the stringency of the 2035 ban could jeopardize the investments made by companies in developing electric vehicles. The shift to a 90% emissions cut, rather than a total ban on new combustion engines, signifies a critical divergence from established environmental goals, raising alarms about the EU's commitment to carbon neutrality by 2050. Industry representatives, however, defend this shift as a necessary alignment with current market conditions and consumer readiness, as reported in India Times and South China Morning Post.