On March 28, 2023, EU Member States except Italy, Poland, Bulgaria, Romania and Germany under certain conditions banned, all new fossil fuelled cars and vans by 2035.  Under the new regulation, new cars must achieve 55% CO2 emission reductions from 2030 to 2034 compared to 2021, while vans must achieve a 50% reduction. This will mean that all cars and vans sold in the EU must have 100% CO2 emission reductions and will need a new or no “tailpipe” design

The regulation maintains a derogation for small-volume manufacturers, such as certain sports car brands, which exempts them from meeting the interim CO2 reductions until the end of 2035.