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The European Commission has unveiled a plan to lift the EU’s effective ban on new combustion-engine cars from 2035 (European Commission press release, 16/12/2025). Under the proposal, EU targets would shift to a 90% reduction in CO₂ emissions from 2021 levels, replacing the current rules that require all new cars and vans to be zero-emission from 2035. 
In practice, automakers would still be able to sell a limited number of polluting vehicles, ranging from plug-in hybrids (PHEV) to diesel cars, beyond 2035. To do so, they would need to offset the climate-warming emissions from these vehicles (the remaining 10% emissions) using two types of carbon credits: 
The plan also introduces a three-year window from 2030 to 2032 for automakers to reduce car CO₂ emissions by 55% from 2021 levels, while the 2030 target for vans would be relaxed from 50% to 40%.
The proposal still requires approval from EU governments and the European Parliament.
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