Tuesday's proposal to revise the previously introduced ban has been pushed forward after harsh criticism from major car manufacturing countries such as Germany, Italy and the Czech Republic.
According to the Commission, it is about helping not only the environment, but also industry and competitiveness.
I am sure that this package will open a new era for the European automotive industry," said Industry Commissioner Stéphane Séjourné at a press conference in Strasbourg.
"Flexibility"
In the spring of 2023, EU member states and the European Parliament pushed through a resolution requiring all new cars sold in the EU from 2035 to be emission-free.
The plan now calls for manufacturers to meet a target of 90 percent reduction in tailpipe emissions, with the remaining 10 percent allowed as long as manufacturers use more environmentally friendly steel, made in the EU, or use e-fuels or biofuels.
"Today we are stepping in to ensure a successful clean future for this industry. We are giving flexibility to manufacturers while reducing emissions. It is good for industry, good for society, puts us on the path to zero emissions and is truly very balanced," said Climate Commissioner Wopke Hoekstra in Strasbourg.
Small electric cars
Car brands that begin manufacturing special "small affordable electric cars" before 2034 - maximum 4.20 meters long - can also access special "super credits".
Tuesday's package also includes lowering the 2030 emissions target for vans from 50 percent to 40 percent and introducing national targets for the number of low- and zero-emission vehicles among company cars.
The European Commission also wants to support battery manufacturers in the EU with just over SEK 15 billion in interest-free loans.
However, the environmental organization T&E is not impressed.
"Hanging on to combustion engines will not make European automakers powerful again," T&E CEO William Todts wrote in a press release.
The Commission's proposal will now be considered and approved by the EU Parliament and the EU Council of Ministers as usual.
