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For years, Europe talked tough on petrol and diesel. From 2035, the plan was simple: no new internal combustion cars, full stop. Now, they’re walking it back. Overnight, the European Commission confirmed its softening its ban, giving carmakers room to manoeuvre through the changes, keeping engines in the mix for longer than previously intended.
Instead of a total ban, manufacturers will now need to cut tailpipe emissions by 90 per cent by 2035, not 100. The remaining 10 per cent can be covered through credits, using materials such as low-carbon steel made in Europe, synthetic e-fuels, or biofuels. In real terms, that means petrol and diesel cars, plus hybrids and range extenders, can still be sold after 2035. And there’s no indication of when petrol cars have to disappear altogether.
The change is part of a wider automotive policy update, which the Commission says is about being “pragmatic” as EV sales grow slower than expected in some countries. Commission President Ursula von der Leyen says the goal is to keep Europe competitive while staying on track for cleaner transport.
That shift matters for us down under.
So what does that mean for Australia?
The timing is awkward for Australia, where the debate is already split. In October 2025, Electric Vehicle Council chief executive Julie Delvecchio called for Australia to lock in its own 2035 ban on petrol and diesel sales, backed by clear EV sales targets to track progress.
The federal government has taken a different approach. Climate Change and Energy Minister Chris Bowen has ruled out both EV sales targets and bans, arguing the market will get there on its own.
“We don’t have an EV sales target because we believe in choice,” Bowen said, noting that many carmakers are already planning to phase out combustion engines through the 2030s without being forced.
To be fair, the market does look better than it used to. Australia now has 94 fully electric models and 59 plug-in hybrids on sale, more choice than ever. But choice alone doesn’t guarantee pace.
According to the EV Council, Australia needs one million EVs on the road by 2028, which means sales growing by roughly 30 per cent year on year through the rest of the decade. Modelling from the Climate Change Authority says electric vehicles need to make up half of all new car sales within the next ten years if Australia is going to hit its 2035 emissions target. That’s a big ask when transport already accounts for around 22 per cent of national emissions.
With cheaper Chinese EVs already dragging prices down, the real risk isn’t a lack of options. It’s hesitation. As Håkan Samuelsson told the Guardian, things like seatbelts only became standard because they were mandatory. For Australia, it’s pretty simple: take advantage of cheaper EVs and move faster, or keep waiting and fall behind.
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