EU’s Revised 2035 Emission Targets Spark Concerns Among Electric Vehicle Startups
The European Commission has recently adjusted its ambitious plan to eliminate gas-powered car sales by 2035, introducing a more flexible approach that permits a limited percentage of new vehicles to utilize internal combustion engines (ICEs) beyond the original deadline. This policy shift has elicited mixed reactions, particularly from electric vehicle (EV) startups and environmental advocates who fear it may impede the momentum toward full electrification.
Background on the Policy Revision
Initially, the European Union (EU) set a target for all new cars and light commercial vehicles to achieve zero CO₂ emissions by 2035, effectively banning the sale of new ICE vehicles. This directive was a cornerstone of the EU’s Green Deal, aiming to significantly reduce greenhouse gas emissions and combat climate change. However, facing mounting pressure from several member states and major automotive manufacturers, the European Commission has proposed a revision to this plan. The updated proposal allows for a 90% reduction in CO₂ emissions from 2021 levels by 2035, rather than the original 100% target. This adjustment means that while the majority of new vehicles will need to be zero-emission, a limited number of ICE vehicles can still be sold, provided their emissions are offset through measures such as using low-carbon steel, e-fuels, or biofuels. ([dieselnet.com](https://dieselnet.com/news/2025/12eu.php?utm_source=openai))
Reactions from the Automotive Industry
Traditional automakers have largely welcomed this policy shift. Companies like Mercedes-Benz, Volkswagen, Stellantis, and Renault have argued that market demand should dictate the pace of the transition to electric vehicles. They contend that the revised targets offer the necessary flexibility to adapt to consumer preferences and technological advancements. For instance, German manufacturers have advocated for the continued availability of plug-in hybrids and range extenders beyond 2035, emphasizing the role of e-fuels and biofuels in achieving emission reductions. ([forbes.com](https://www.forbes.com/sites/neilwinton/2025/03/06/europe-eases-co2-rules-but-pressure-rises-to-end-2035-ev-monopoly/?utm_source=openai))
Concerns from Electric Vehicle Startups
In contrast, EV startups and their investors have expressed significant concerns regarding the revised targets. They argue that diluting the original 2035 goal could undermine the EU’s leadership in the global EV market and slow down the transition to sustainable transportation. Craig Douglas, a partner at World Fund, a European climate-focused venture capital firm, stated, If Europe doesn’t compete with clear, ambitious policy signals, it will lose leadership of another globally important industry — and all the economic benefits that come with it. This sentiment was echoed in an open letter to European Commission President Ursula von der Leyen, signed by executives from companies including Cabify, EDF, Einride, and numerous EV-related startups, urging the Commission to maintain the original 2035 zero-emission target.
Environmental Advocacy and Criticism
Environmental organizations have also criticized the EU’s decision to relax the 2035 targets. Greenpeace East Asia expressed deep concern over the policy reversal, stating that it threatens to slow global progress toward transport electrification and climate action. Martin Kaiser, Executive Director of Greenpeace Germany, remarked, This plan is an early Christmas present for Chinese electric car manufacturers, putting millions of European lives and jobs at risk. It may generate short-term returns for the automotive industry, but no long-term future. ([greenpeace.org](https://www.greenpeace.org/eastasia/press/68560/greenpeace-condemns-eu-rollback-on-2035-ice-phase%E2%80%91out-urges-stronger-commitment-to-transport-electrification/?utm_source=openai))
Implications for the European Automotive Market
The policy revision comes at a time when the European automotive industry is facing significant challenges, including competition from Chinese EV manufacturers, high energy prices, and a shortage of car components. By allowing a limited number of ICE vehicles to be sold beyond 2035, the EU aims to provide automakers with the flexibility needed to navigate these challenges. However, critics argue that this approach may hinder necessary investments in EV technology and infrastructure, potentially deepening Europe’s competitive disadvantage in the automotive sector. ([lemonde.fr](https://www.lemonde.fr/en/opinion/article/2025/12/17/eu-takes-dangerous-step-backwards-on-internal-combustion-engines_6748591_23.html?utm_source=openai))
The Path Forward
The European Commission’s proposal still requires approval from the European Parliament and member states. As the debate continues, stakeholders from various sectors are calling for a balanced approach that supports the automotive industry’s transition to electrification while maintaining the EU’s climate goals. The outcome of this policy revision will have far-reaching implications for the future of transportation in Europe and the global fight against climate change.
