EU 2035 Combustion Engine Ban: What It Means for Used-Car Buyers

Published 2026-10-23 · 8 min read

The "2035 combustion engine ban" is one of the most quoted and most misread EU rules. It does not cover the car you own today or the used car you are about to buy, and as of October 2026 its final form is being renegotiated in Brussels. Here is what is already law, what is only proposed, and what that means when you shop for a second-hand car.

What the law says today

The current rule is Regulation (EU) 2023/851, which amended the EU's CO2 standards for new cars and vans. It sets a 100% CO2 reduction target for new passenger cars and vans from 2035 onwards, which means a fleet-wide target of 0 g CO2/km (European Commission). Before that, carmakers' new-car fleets must meet 93.6 g CO2/km for 2025–2029 and 49.5 g CO2/km for 2030–2034.

In 2025 the EU adopted Regulation (EU) 2025/1214. It lets manufacturers average their compliance over 2025, 2026 and 2027 instead of meeting the target every single year, without changing the targets themselves (European Commission).

The key point for used-car buyers is that these targets apply to new cars placed on the market, measured across each carmaker's fleet. The European Parliament says plainly that the rules "don't affect existing cars", that you can keep driving your current car, and that buying and selling second-hand petrol and diesel cars after 2035, and getting fuel for them, "will all still be possible" (European Parliament). The Parliament adds one caveat: the total cost of owning such cars may rise.

The proposal to soften it (not yet law)

On 16 December 2025 the European Commission presented an "Automotive Package". It would change the 2035 target for cars from a 100% cut to a 90% cut in tailpipe CO2 compared with 2021 (European Commission Q&A). Carmakers would have to make up the remaining 10% with credits:

• up to 7% of the 2021 reference from using low-carbon steel made in the EU;
• up to 3% from the measured emission savings of e-fuels and biofuels sold in a given year.

The Commission says this would let plug-in hybrids, range extenders, mild hybrids and conventional combustion cars "still play a role beyond 2035" alongside electric and hydrogen vehicles. The package also proposes cutting the 2030 target for vans from 50% to 40%, adds flexibility on the 2030 car target, and offers extra credit for small affordable electric cars made in the EU (European Commission Q&A; Euronews).

Where negotiations stand in October 2026

As of 23 October 2026, the proposal has not been adopted. It still needs agreement between the European Parliament and EU governments in the Council.

• Parliament committees: On 22 October 2026 the Transport and Industry committees adopted a compromise backed by the EPP, S&D and Renew groups. It sets the 2035 car target at an 87.5% cut instead of 90%. It also allows carmakers to offset remaining emissions, up to a 95% cut, through low-carbon steel credits. For vans it lowers the targets to 35% in 2030 and 80% in 2035 (Agence Europe).
• Next steps in Parliament: The Environment committee was expected to vote in early November, with a plenary vote planned for December (electrive). Agence Europe reports that the plenary vote is tied to progress on a separate file, the Industrial Accelerator Act, so the timing may slip.
• Member states: Germany and France have agreed a joint line that keeps the 90% target for 2035 but with no offset mechanism for the remaining 10% (Agence Europe; electrive). The Council needs a qualified majority to adopt its position.

In short, the 100% target is still the law, but the direction of travel is towards a target below 100% with some room for hybrids and combustion cars after 2035. The final number is open. Whatever the outcome, it concerns new cars only.

Euro 7: already decided, starting soon

Euro 7 is a separate law, Regulation (EU) 2024/1257, on pollutant emissions rather than CO2. The Council adopted it in April 2024 (Council of the EU). It applies:

• from 29 November 2026 to new types of cars and vans;
• from 29 November 2027 to all newly registered cars and vans (European Parliament Legislative Observatory).

For cars it keeps the Euro 6 exhaust limits but adds limits for smaller solid particles, brake particle limits (including specific limits for electric cars), tyre abrasion rules, minimum battery durability requirements, longer durability requirements for emission systems, and on-board monitoring of emissions. Like the CO2 rules, Euro 7 covers new vehicles. It does not make an existing Euro 6 car illegal or change its classification.

What this means for used-car values

No reliable source can tell you what a given car will be worth in 2030 or 2035, and you should be wary of anyone who claims to. What can be measured is the current market.

JD Power's European residual-value data for July 2026 shows that battery-electric cars still keep the lowest share of their original price of any powertrain in every European market it tracks. The gap below the market average was largest in Italy (15.7 percentage points) and France (15.2 points) (JD Power). At the same time, used electric cars are the trend that is improving:

• In Germany, the average retained value of a three-year-old electric car with 60,000 km rose 0.5 points year on year, while the market average fell 2.3 points.
• Indexed prices of used electric cars in Spain, Italy, Germany and France rose compared with January 2026, while every other powertrain fell.
• Used electric cars were the fastest-selling powertrain in Austria, France, Germany, Spain, Switzerland and the UK.

In Austria, for example, full hybrids kept the highest value (48.9% of list price after 36 months), ahead of petrol (48.1%), diesel (46.9%), plug-in hybrids (42.9%) and electric cars (40.2%) (JD Power).

The practical takeaway: a petrol, diesel or hybrid car does not lose its right to be driven or resold because of the 2035 rule. Its resale value will depend much more on local factors (fuel prices, taxes, city access rules, demand for the model) and on its own condition and history than on the headline debate in Brussels. A used electric car often costs less up front because it depreciates faster, but its value depends heavily on battery health.

Practical checklist for buyers

1. Don't panic-buy or panic-sell. The 2035 rule, current or amended, only covers new cars. As of October 2026 it is still under negotiation.
2. Check local rules, not just EU rules. Low-emission zones, registration taxes and fuel taxes are set nationally or by cities and can affect costs much sooner than 2035. Note the car's Euro standard from its registration documents.
3. For diesels, check the emissions hardware. Ask whether the particulate filter and, where fitted, the AdBlue/SCR system work and have never been removed. A car that has been tampered with can fail inspection.
4. For electric cars, ask for a battery health report. Battery condition is the main driver of a used EV's value. Ask for the state-of-health figure and for evidence of warranty coverage.
5. For plug-in hybrids, check how they were used. A car that was rarely charged may have a worn engine for its age.
6. Check the history before you pay. Mileage, past damage, inspection results and open recalls matter far more to a used car's value than the 2035 debate.

1. Plan for the years you will actually own the car. If you keep cars for four or five years, today's market data and your local costs matter more than a target that applies to new cars from 2035.

The bottom line

Today the 2035 rule is a 100% CO2 cut for new cars. A proposal to lower it to 90%, and a Parliament committee version at 87.5%, are still being negotiated as of October 2026. Euro 7 will apply to new car types from November 2026 and to all new cars from November 2027. None of these laws bans driving, buying or selling a used petrol or diesel car. For a buyer, the condition and history of the specific car remain the deciding factors.