The European Union has finally reached an agreement to end the sale of new internal combustion cars and vans by 2035, with the bill soon to become legislation, Kallanish reports.

The European Commission welcomed on Friday the agreement between the European Parliament and European Council late on Thursday. This is the first agreement under the Fit for 55 legislative proposals tabled by the EC in July 2021.

Now the agreement has to be formally adopted by the Parliament and Council, and published it in the Official Journal of the Union to enter into force.

Under the final deal, carmakers will be required to reduce emissions of new ICE cars sold by 55% in 2030, compared to 2021, before reaching a 100% CO2 cut five years later. The CO2 emission target for new vans is 50% by 2030. By 2035, all new cars and vans registered in Europe will be zero-emission, the EC says.

Frans Timmermans, evp for the European Green Deal, says: “The agreement sends a strong signal to industry and consumers: Europe is embracing the shift to zero-emission mobility. European carmakers are already proving they are ready to step up to the plate, with increasing and increasingly affordable electric cars coming to the market.”

Campaign group Transport & Environment (T&E) welcomed the “historic agreement.” However, it says lawmakers must now accelerate other measures to reduce vehicle emissions in this decade such as improve taxation and charging policies to spur the take-up of zero-emission cars, and subsidised leasing schemes to make EVs more accessible.

It warns that a “robust EU industrial strategy,” including local content requirements for EVs and batteries, is needed to ensure European carmakers keep up in the global race to lead on this green technology. The call comes as the US’s Inflation Reduction Act places European manufacturers at a steep disadvantage to their American rivals, and Chinese EV makers gain fast market share in the EU.

“Foreign carmakers are eating the European’s lunch,” says Julia Poliscanova, senior director for vehicles and e-mobility at T&E. “The EU badly needs a joined-up strategy for its auto industry that speeds up electrification and future-proofs European jobs.”