Britain stands isolated as EU eases targets on car emissions

Britain has been left isolated over its aggressive plan to phase out petrol and diesel cars and sell only electric vehicles by 2035, as the European Union signaled a softer target for emissions rules. The divergence has drawn cautious comments from industry observers who say the UK’s stance may clash with its biggest export markets and manufacturing partners. David Bailey, a car industry expert and professor at Birmingham Business School, said: 'There’s no other country with a significant auto industry that has set such an aggressive target.'

EU officials proposed watering down the goal for reducing emissions from new cars from 100% of 2021 levels — effectively a net-zero standard — to a 90% target by 2035. The change comes as EU negotiators seek to preserve flexibility for a range of technologies while maintaining momentum on decarbonization. UK policy, in contrast, sets a firm 80% electric-vehicle share by 2030 and forbids the sale of new petrol- or diesel-only cars from that year onward.

Britain’s timeline would then ban internal combustion engines from new-car sales altogether, a stance that some observers say raises questions about alignment with European markets and supply chains. The UK has argued for a rapid transition but has kept less flexibility in the core target, underscoring a policy divide with Brussels.

David Bailey also noted the practical lag between policy and vehicle supply. 'Given the average life of a car being 15 years, allowing ICE [internal combustion engine] cars up to 2035 would get us to net zero by 2050 in good shape and help the industry make the transition,' he said, highlighting concerns that a very aggressive 2035 deadline could strain the industry’s ability to scale production, charging infrastructure, and consumer adoption.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: 'What happens in Europe matters to the UK. Permitting a greater range of technologies beyond 2035 gives Europe increased flexibility to manage a sustainable transition – without compromising its ambition.' The industry group has cautioned that UK policy must be considered in a global context, particularly given the EU’s influence on automotive investment and supply chains.

Industry Minister Chris McDonald told the Financial Times that the Government will review its targets. While details of any prospective changes were not disclosed, McDonald emphasized that policy would be updated in light of international developments and advances in vehicle technology, with the government seeking to balance decarbonization aims against industrial competitiveness and jobs.

A separate policy issue connected to the broader debate over EV adoption has fueled tension between manufacturers and policymakers. In the Budget, the Chancellor proposed an electric-vehicle excise duty of 3p per mile for fully electric cars and 1.5p per mile for hybrids. Massimiliano Messina, the European boss of Nissan, argued that such a tax could dampen demand for EVs and slow the transition. 'It is a bit strange to see an EV tax when we want to transform the country from petrol to electrification,' he said. 'If you tax something, you are less inclined to buy and probably you stick with a product for the time being.' The comment reinforces a broader industry concern that fiscal policy must align with long-term electrification goals to avoid undermining market uptake.

The row over targets comes as policymakers and industry groups weigh how quickly to shift investment toward battery plants, charging networks, and skilled jobs across the automotive sector. Some analysts caution that divergent national timelines risk pushing investment to other markets if the UK is seen as pursuing a tougher regulatory environment than its European neighbors. Others argue that a clear, ambitious timetable is essential to stimulate private capital and accelerate the transition, provided there is adequate momentum in charging infrastructure, grid capacity, and consumer incentives.

As the World watches the evolving approach to decarbonization, UK officials say the goal remains to decarbonize transport while preserving economic resilience. Critics argue that the UK must ensure its policy framework remains aligned with major trading partners and does not inadvertently erect barriers to innovation or investment. The coming months are likely to see renewed debate over how best to balance environmental objectives with industrial strategy, the pace of technological change, and the realities of a global automotive market that increasingly centers on electrification, software, and data-driven services.