The bold 2035 zero-emission goal faces scrutiny as a new study warns of massive job losses if abandoned, sparking debate over its economic and environmental impact
The European Union’s ambitious plan to ban fossil-fuel car sales by 2035, known as the zero-emission goal, is at a crossroads.
A recent study by Transport & Environment (T&E) suggests that abandoning this target could lead to the loss of 1 million jobs in the automotive sector, alongside a €90 billion economic hit. But why is this happening, and what does it mean for Europe’s future? Let’s explore the reasons, implications, and potential benefits of sticking to this transformative policy.
Why Is the Zero-Emission Goal Under Threat?
The zero-emission goal emerged as a cornerstone of the EU’s push for climate neutrality, aiming to eliminate CO2 emissions from new cars and vans by 2035. However, recent challenges have sparked debate. High production costs, competition from Chinese electric vehicle (EV) manufacturers, and U.S. tariffs on auto imports have pressured European carmakers.
In May 2025, the European Parliament softened some CO2 emissions targets, signaling potential flexibility in the zero-emission goal. Critics argue that scrapping it could ease short-term financial strain, but T&E warns this risks long-term economic damage. What trade-offs are European leaders weighing as they navigate this decision? Could short-term relief undermine the region’s global competitiveness?
The study highlights that abandoning the goal could disrupt planned investments, particularly in battery manufacturing. This could shift jobs and innovation to competitors like China. Yet, maintaining the target requires robust industrial strategies to support EV production. How can the EU balance immediate economic pressures with long-term sustainability goals?
What Are the Implications and Future of the Zero-Emission Goal?
Sticking to the goal could reshape Europe’s economy for the better. T&E projects that upholding the policy, paired with strong support for domestic EV production, could boost the automotive sector’s economic contribution by 11% by 2035.
This includes producing 16.8 million vehicles annually, matching post-2008 peaks. More importantly, the transition could create over 100,000 battery manufacturing jobs by 2030 and 120,000 charging infrastructure jobs by 2035. These figures suggest that the zero-emission goal isn’t just about cutting emissions, it’s about building a future-ready economy.
Conversely, abandoning the target could lead to a loss of two-thirds of planned battery investments and a diminished role in the global EV market. Europe risks falling behind in the electrification race, ceding ground to rivals.
The zero-emission goal also carries environmental weight, aligning with the EU’s broader climate neutrality ambitions. However stricter emissions are facing backlash globally from automakers too.
The path forward hinges on policy decisions. Strong industrial strategies, such as subsidies for EV production and infrastructure, could mitigate job displacement in traditional manufacturing. Meanwhile, public support for EVs, through incentives and charging networks, is critical.
The zero-emission goal offers a chance to lead the global shift to sustainable transport, but only if Europe commits fully.
