EU delays auto-sector proposals that could alter 2035 combustion-engine phaseout

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The European Union has postponed the release of a major policy package for the automotive sector, pushing back proposals that could reshape the bloc’s 2035 ban on sales of new CO₂-emitting cars. The European Commission confirmed on Monday that publication of the measures, initially scheduled for this Wednesday, has been moved to 16 December.

A draft internal agenda also indicated delays to a separate package that would expand the EU’s carbon border tariff to cover additional manufactured goods, including washing machines. The Commission declined to confirm the revised timetable for those proposals, saying interdepartmental negotiations are ongoing as officials attempt to schedule remaining releases before year-end.

Carmakers press for changes as EV transition slows

The 2035 rule, in its current form, would end sales of new combustion-engine vehicles across the bloc. Several governments — notably Germany and Italy — along with parts of the automotive industry, are urging the Commission to allow ongoing sales of plug-in hybrids and combustion vehicles running on so-called CO₂-neutral fuels made from crops or waste.

Manufacturers argue that slower-than-expected electric vehicle uptake and intensifying competition from China require greater flexibility. However, revising the policy could jeopardise the EU’s climate goals, increasing the number of CO₂-emitting vehicles on European roads by 2050 — the deadline by which the bloc aims to reach net-zero emissions.

Some EU officials have suggested the autos package may face further delays into 2026. Guido Guidesi, Italy’s regional minister for economic development in Lombardy, warned that continued uncertainty would damage the sector.
“Further postponements and delays are unacceptable, because we are out of time — millions of jobs and entire industries are at risk,” he said.

Carbon border tariff expansion also in flux

The Commission is also working on proposals to prevent foreign companies from circumventing the EU’s carbon border tariff, which will begin charging importers for embedded CO₂ emissions from January. The mechanism currently covers goods such as steel, aluminium and cement.

Plans to extend the tariff to additional products have been pushed back, according to the draft agenda, and a related “Industrial Accelerator” policy favouring locally manufactured goods has also been delayed to 28 January. The latter initiative is intended to strengthen European industries against cheaper imports, particularly from China, but has divided member states. France supports the measure, while Sweden and the Czech Republic warn that “buy local” rules could deter investment and inflate procurement costs.

The Commission is expected to confirm final publication dates once internal negotiations conclude.

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