EU Petrol Car Ban Scrapped as UK Faces Calls to Review Net Zero Policy

Ed Miliband, the Energy Secretary, has been left on the back foot after the European Union abandoned its cornerstone plan to prohibit sales of new petrol cars. Brussels is reportedly preparing to dilute its stance on vehicle emissions legislation, prompted by opposition from significant member states including Germany and Italy.

Manfred Weber, leader of the European Parliament’s largest MEP group, announced that the scheduled 2035 ban on new petrol, diesel and hybrid vehicles would be indefinitely postponed. The revised EU objective targets a 90 percent reduction in passenger vehicle carbon emissions instead, eliminating the prospect of a comprehensive ban. The decision, confirmed following discussions with European Commission President Ursula von der Leyen, underscores the challenge of aligning environmental ambitions with industrial realities on the continent.

The strategic shift in Brussels delivers a setback to Mr Miliband and Labour’s net zero agenda, which has attracted criticism over potential consequences for UK industry and household finances. Despite the EU’s change in direction, ministers in Whitehall maintain that their own commitments to ban new petrol and diesel cars by 2030 and hybrids by 2035 remain in force. A regulatory review has been scheduled for 2027.

Debate has intensified within the British automotive sector. Car makers are legally required to meet zero emission vehicle sales quotas ahead of the ban, under the Zero Emission Vehicle (ZEV) mandate. Conservative shadow energy secretary Claire Coutinho has called for greater freedom of choice for consumers, proposing the repeal of net zero legislation and the introduction of a national Cheap Power Plan to reduce electricity bills by 20 percent. She contends that compelling households to adopt expensive technologies risks increasing financial burdens.

Similar calls have emerged from industry leaders. Robert Forrester, chief executive of Vertu Motors, labelled the EU decision pragmatic and urged an urgent reassessment of the UK’s ZEV mandate. Mike Hawes, head of the Society of Motor Manufacturers and Traders, emphasised that EU policy changes directly impact the UK, given the bloc’s status as Britain’s largest automotive export market. He suggested the UK may be compelled to bring forward its scheduled emissions policy review.

Experts point out the revised EU position provides a commercial reprieve for manufacturers such as Mini and Nissan with UK facilities, as well as luxury marques including Aston Martin and Jaguar Land Rover. These firms can continue exporting petrol models to the Continent for a longer period than previously anticipated. Meanwhile, analysts such as Andrew Bergbaum of AlixPartners warn the move undermines the investment case for new UK electric vehicle and battery facilities, casting doubt on high profile projects such as the proposed JLR battery plant in Somerset.

Proponents of electric vehicles have cautioned British ministers against mirroring the EU’s reversal, arguing that it would threaten progress on emissions reductions and compromise the competitiveness of UK and European manufacturers amid rising competition from Chinese and Korean imports. Official data shows that electric vehicles accounted for a quarter of UK car sales in November, signalling ongoing momentum for the sector regardless of policy headwinds.