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Spectacular electric car sales weaken pressure for lower CO2 standards, EU climate chief says - Finance news and analysis from Global Banking & Finance Review
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Spectacular electric car sales weaken pressure for lower CO2 standards, EU climate chief says

Published by Global Banking & Finance Review

Posted on June 25, 2026

3 min read

· Last updated: June 25, 2026

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'Spectacular' electric car sales weaken pressure to shelve combustion engine ban, EU climate chief says

EU Debates Over Combustion Engine Ban Amid Rising Electric Vehicle Sales

By Kate Abnett and Bart H. Meijer

Political Momentum and Policy Proposals

LUXEMBOURG, June 25 (Reuters) - A "spectacular" rise in electric car sales is weakening political momentum to roll back the European Union's planned ban on combustion engine cars, the bloc's climate commissioner said on Thursday, as governments laid bare divisions over the policy.

The European Commission last year proposed a rollback of the EU's effective ban on new combustion-engine cars from 2035 after pressure from Germany, Italy and the auto sector, changing the target to a 90% emissions reduction instead.

Commissioner Hoekstra's Perspective

"Some have indeed been saying, both member states and the European Parliament, 'Isn't this a sign that the status quo was already good enough?'," Commissioner for Climate Wopke Hoekstra said before a meeting of EU climate ministers in Luxembourg, referring to the original target requiring a 100% cut in CO2 emissions from cars by 2035.

"The numbers are truly spectacular... Electric vehicle ​sales, ⁠particularly in the three largest markets, but also secondhand (are) truly very impressive," Hoekstra said.

Electric Vehicle Sales Surge

Electric vehicle sales have surged in some countries in recent months, as the U.S.-Israeli war with Iran has driven up oil and fuel prices.

Country-Specific Sales Data

EV sales in Europe's biggest market Germany jumped by 39% last month, versus May 2025, data from the non-profit International Council on Clean Transportation showed. France (93%) and Italy (85%) also posted large year-on-year sales increases, though in Poland, EV sales last month dropped by 26%.

Ongoing Negotiations and Divisions

EU countries are now negotiating the proposed rollback, and could yet amend it.

Diplomatic Stances

Diplomats told Reuters countries were split — with some arguing for smaller changes to the car CO2 rules, and others seeking to weaken it further than Brussels proposed — and it was not yet clear which side would prevail.

Germany and Italy's Position

Germany and Italy urged the EU on Thursday to further soften the combustion engine ban, in Italy's case to allow more vehicles powered by biofuels, rather than going all-in on CO2-free electric cars. 

"Having a European strategy focused on one technology is going to put us at risk in the future," Italy’s environment minister Vannia Gava told the meeting.

France and Sweden's Position

France and Sweden were among those to defend the combustion-engine ban, warning that weakening it would delay urgently needed investments to help European EV manufacturers stay competitive.

Weakening the policy after the Iran war's energy fallout would be a "terrible signal", French climate minister Monique Barbut said.

Reporting and Editing Credits

(Reporting by Kate Abnett, writing by Bart Meijer; Editing by Aidan Lewis)

Key Takeaways

  • European EV sales jumped sharply in early 2026 — BEV registrations rose ~26% in Q1 and 34% in May, with nearly one in four new cars fully electric (best-selling-cars.com)
  • The EU Commission’s trimmed target—from a 100% CO₂ cut by 2035 to 90%—still stands, but booming EV uptake strengthens political support for maintaining the tighter standard (techradar.com)
  • Spiking oil prices and better EV affordability are key drivers: April EV share grew from 15.7% in 2025 to 20.6% in April 2026, and consumers now save ~35% on fuel costs (climate.ec.europa.eu)

References

Frequently Asked Questions

How have electric car sales affected EU CO2 standards?
Rising electric car sales have reduced pressure from some EU countries to weaken future CO2 rules for combustion engine cars.
What change did the EU Commission make to car emissions targets?
The EU Commission changed the 2035 target from a 100% cut in CO2 emissions to a 90% reduction for new combustion engine cars.
Why does the EU Climate Commissioner support the new CO2 proposal?
The Commissioner noted that strong electric vehicle sales make the new, less stringent proposal still effective in reducing emissions.
Which markets are driving electric vehicle sales in Europe?
The three largest markets in Europe are leading the growth in electric vehicle sales, including both new and secondhand vehicles.

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