Why Europe is rethinking its bold plan to phase out gas cars

illuminem summarises for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:

🗞️ Driving the news: The European Union’s plan to phase out sales of new gas and diesel cars by 2035 is under mounting pressure
• While once hailed as a flagship climate policy, the proposal is now facing political backlash, industrial challenges, and economic anxieties — prompting calls for flexibility from conservative lawmakers and automotive industry leaders
• The shift comes ahead of a crucial EU review period that could alter the original target

🔭 The context: The 2035 ban was introduced in 2021 as part of the EU’s broader Green Deal, aiming to decarbonize the transport sector, which accounts for nearly a quarter of the bloc’s emissions
• Automakers such as Volkswagen and BMW(see sustainability performance) initially supported the transition, investing heavily in electrification
• However, surging EV costs, competition from Chinese manufacturers, and factory layoffs have strained support
• Political sentiment has also shifted rightward, leading to greater skepticism toward rapid climate mandates

🌍 Why it matters for the planet: Delaying the phaseout could jeopardize the EU’s net-zero goals and signal weakened global climate leadership
• A watered-down target risks prolonging fossil fuel reliance and slowing EV infrastructure expansion
• On the other hand, critics argue a rigid timeline without economic safeguards may deepen reliance on Chinese supply chains and undermine local industries
• The outcome will influence how major economies balance climate ambition with industrial resilience

⏭️ What's next: The EU will formally review the 2035 regulation, with possible revisions on the table — including extended allowances for plug-in hybrids
• Member states like Italy and Germany are lobbying for delays, while the European Commission is offering transitional flexibility to automakers
• Industry players are under pressure to deliver more affordable EV models as Chinese competitors ramp up European operations
• The final direction could shape global EV standards and investment flows in the coming years

💬 One quote: “We need flexibility on the 2035 target. We don’t want to kill off the industry.” — Jens Gieseke, Member of the European Parliament, European People’s Party

📈 One stat: As of 2024, just 13.6% of new cars sold in the EU are fully electric — far below the uptake needed to meet the 2035 target

See on illuminem's Data Hub™ the sustainability performance of Volkswagen, BMW, and Renault and their peers Stellantis, BYD, and Tesla

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