By Miguel Pinto, Director-General of Polestar Portugal
By the end of 2025, the European Commission decided to roll back the originally set target for 2035 that envisaged the end of combustion engines in the European Union from that date. This softening of the initial objective marks a retreat in one of the fundamental pillars of the energy transition. In practice, Brussels will allow combustion-engine models to continue to be produced after 2035, provided they are accompanied by compensation mechanisms such as e-fuels, biofuels, or low-carbon steel. This retreat was justified as necessary to protect industrial competitiveness, ensuring an orderly transition, in a scenario of pressure from several member states and a large portion of the European automotive sector.
I think this retreat undermines exactly what Europe says it wants to defend regarding climate ambition, energy security, and industrial leadership. Polestar has taken a very clear stance against this measure: retreating now harms not only the climate but also European competitiveness (to recall that a combustion vehicle produced in 2035 will continue to pollute until the mid-2050s).
In revising the environmental targets, the European Commission sends a signal of uncertainty at the precise moment when the automotive sector needs predictability to guide long-term investments. By allowing plug-in hybrid vehicles and combustion engines to remain in effect beyond 2035, Europe ends up disincentivizing innovation, risking delaying the modernization of its value chains.
Another of the arguments used to justify the retreat is the uneven demand for 100% electric vehicles across the various markets. I consider this a false issue. In places where supply is competitive and the infrastructure is up to the task, demand grows. The real problem is not a lack of consumer interest but a lack of confidence in the political direction. By changing the targets, investment decisions change, both by brands and by consumers.
European competitiveness is not strengthened by prolonging the past. It is sustained by investing in the future. And the future is clearly electric. Europe risks losing technological and industrial leadership if it does not clearly embrace this path. The flexibilization of the rules may seem like a way to ease pressure, but in practice it prolongs dependencies and delays the inevitable.
At Polestar, we believe that electrification is not just an environmental choice — it is a strategic necessity. The solutions exist, the technology is ready, and society is prepared to move forward. What is missing is regulatory consistency. Firm and stable targets are essential to ensure confidence, attract investments, and guarantee that Europe maintains its capacity for innovation in a sector decisive for its economy.
Retreating now means losing precious time. And time is the scarcest resource in combating climate change — and in the global race for leadership in the mobility of the future.
