Economist Podcasts Emissions possible: EU petrol ban quashed
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Dec 17, 2025 
In this engaging discussion, Henry Kerr, an Economics editor at The Economist, delves into the recent watering down of the EU's commitment to ban new petrol vehicles by 2035. He highlights the potential impact of this shift on European carmakers and competition from Chinese EV manufacturers. The conversation also shifts to the political stakes surrounding Donald Trump’s forthcoming Federal Reserve chair appointment, with concerns about the risks to Fed independence and broader economic stability. Plus, learn about the quirky Word of the Year choices!
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EU Replaces Ban With Emissions Target
- The EU moved from a full 2035 petrol/diesel sales ban to a 90% tailpipe emissions reduction target by 2035, loosening interim and commercial-vehicle goals.
- Tom Devlin warns this rollback slows decarbonisation and risks ceding ground to fast-growing Chinese EV competitors.
European EV Adoption Is Lagging
- EV adoption in Europe is slower than hoped: about one in five new cars this year are pure EVs and projections suggested only ~75% EVs by 2035.
- Slower uptake stems from high upfront costs, limited small-model EVs, patchy charging, and wavering government subsidies.
Keep Incentives And Infrastructure Stable
- Support measures matter: keep purchase incentives and charging infrastructure to sustain EV demand.
- Policymakers should avoid abrupt subsidy removals, as Germany's incentive withdrawal collapsed EV sales.