Confirmed: Europe to ban sales of petrol and diesel cars from 2035

The European Parliament has greenlit new laws that will effectively ban the sale of petrol and diesel cars and light commercial vehicles in the European Union from 2035.

Created to force both consumers and car-makers to eliminate the tailpipe emissions of their vehicles in just 12 years, the new laws demand that from 2035 all new light vehicles sold within the EU must slash their CO2 emissions by 100 per cent compared.

This will make it impossible for volume car-makers to sell any new petrol- or diesel-powered cars in the 27 member states that make up the EU.

As well as implementing what is an outright CO2 ban in all but name from 2035, the Europe’s controversial ‘Fit for 55’ emissions plan also demands car-makers cut CO2 the emissions of new vehicles sold in the EU by 55 per cent compared to 2021 levels by 2030.

This last figure could be even more challenging for auto brands, since the target had originally been set at 37.5 per cent.

New vans, meanwhile, must also comply with the 100 per cent CO2 cut by 2035, but are required to slash their emissions by ‘only’ 50 per cent by 2030.

The move is thought to reward car-makers like Volkswagen, which has already invested heavily in electrification and will become an all-EV brand by 2033, but punish those slower-moving brands.

As part of the new legal emissions framework, there are some exemptions. Car-makers that produce less than 10,000 vehicles annually can negotiate less stringent CO2 targets, but must still be compliant with the 100 per cent reduction by 2036.

Manufacturers registering fewer than 1000 new vehicles per year will be exempt from the new rules and while the new law effectively bans the sale of new petrol and diesel cars, it doesn’t specifically mention banning internal combustion engines and leaves open the door for synthetic fuels and hydrogen power.

Porsche began e-fuel production late last year and Tasmanian-made synthetic fuel could power a range of other Volkswagen Group vehicles from 2026, while a range of car-makers including Toyota are developing hydrogen-fuelled combustion engines.

As well as introducing the more stringent CO2 regulations, it's thought the EU will help member states make EVs more affordable via subsidies like those offered in Australia, as well as to help bear the cost of the huge ramp-up in charging infrastructure that will be required to support them in Europe.

Commenting on the new laws, the European Parliament's lead negotiator Jan Huitema said: “The operating costs of an electric vehicle are already lower than the operating costs of a vehicle with an internal combustion engine.

“This regulation encourages the production of zero- and low-emission vehicles. It contains an ambitious revision of the targets for 2030 and a zero-emission target for 2035, which is crucial to reach climate neutrality by 2050. These targets create clarity for the car industry and stimulate innovation and investments for car manufacturers.

“Purchasing and driving zero-emission cars will become cheaper for consumers and a second-hand market will emerge more quickly. It makes sustainable driving accessible to everyone.”

Many car-makers have already committed to end dates for producing only electric vehicles, including Alfa Romeo (by 2027), Genesis and Jaguar (by 2025) and Bentley, Fiat, Ford of Europe, GWM Haval, Maserati, MINI and Rolls-Royce (by 2030).

GM, Lexus and Volkswagen has promised to be EV-only by 2035, with Honda following by 2040.

The Australian government has not put an end date on sales of new petrol or diesel cars or commercials, but is considering a mandatory industry CO2 target, while the ACT government will follow Europe’s lead by banning new combustion cars from 2035.

Meantime, many jurisdictions have also announced combustion-car bans by 2035, including the US states of California, Oregon and New York.

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