The EU Blinking on 2035 is a Signal to Prioritize Data Over Politics

Yesterday’s announcement from Brussels – that the EU is proposing to replace its effective 100% ban on combustion engines with a "90% target" for 2035 – is being hailed by many as a reprieve and by others as a retreat. But for fleet managers navigating the real world of P&L sheets and operational efficiency, this political pivot changes far less than the headlines suggest. Even though this proposal still faces a legislative gauntlet in Parliament, the mere fact that the targets are shifting confirms one thing: regulations can be volatile.

While policymakers recalibrate, the physics of profitability remains the same. The danger now is that many companies view this regulatory "reset" as permission to pause their own modernization. That could be a strategic error. The momentum for electrification and emission reduction was never solely about complying with a ban in 2035 nor is it solely about the bottom line. It is about a dual mandate: the urgent need for genuine sustainability combined with the immediate business case for efficiency.

Pragmatic Sustainability Wins, Ban or No Ban 

At Geotab, we champion what we call Pragmatic Sustainability. This approach moves beyond distant legislative goals to deliver immediate, data-driven empowerment. Whether the target is 100% or 90%, the waste in our current fleets – excessive idling, poor routing, and relying on the wrong fuel for the job – is costing businesses money today.

We see this across our customer base every day. By using data to simply correct wasteful habits, we have seen major logistics and transport fleets save tens of thousands in monthly operating costs and cut CO₂ emissions by thousands of tons annually. These aren't compliance exercises; they are efficiency wins. This proves that environmental responsibility and business performance can, and must, improve together.

The "Reset" Actually Increases Complexity 

Recent reports suggest we are moving from a "clean, all-or-nothing cut-off" to a more flexible, nuanced system. In practice, this means we will see complex, mixed fleets operating for longer than anticipated.

Managing a mixed fleet of EVs, hybrids, and combustion engines requires a new level of intelligence. It exposes the limitations of "gut feel" management. Sticking to a "simple" all-diesel strategy might feel safe, but it increasingly means accepting higher operational costs than your competitors who optimize their energy mix. You cannot afford to deploy an EV where it doesn't fit, nor can you afford to keep a diesel van on a route where an EV would slash your emissions and total cost of ownership (TCO).

Our analysis of the data shows that the operational case for EVs is already settled. Three-quarters (75%) of light-duty fleet vehicles operate within the daily range of modern EVs. This effectively de-risks the transition for the vast majority of your fleet. But it isn't just about range; it's about profit. The data reveals that nearly half (49%) of European fleet vehicles are economically suitable for electrification today – meaning they would cost less to own and operate as EVs than as gasoline or diesel equivalents.

The focus should not be on the minority of vehicles that might need combustion engines for longer; it should be on the 50% that are effectively burning cash by not being electric.

Stability in a Volatile World 

The automotive industry is calling this a "high noon" moment, and manufacturers are scrambling to adjust to new targets for 2030 and 2032. But fleets cannot afford to swing their strategy with every pendulum shift in Brussels.

You need a strategy that survives the news cycle.

1. Focus on the "Low-Hanging Fruit": Use your vehicle data and telematics platforms to identify which vehicles can be replaced economically today, regardless of mandates.
2. Streamline Savings: Don't wait for 2035 to cut emissions. Tackle fuel burn and idling now to fund your future transition.
3. Trust Your Ecosystem: The shift is global. We are seeing a continued year-over-year increase in connected EVs on our platform because the market sees where the value lies.

The EU may have bought the combustion engine a little more time, but they haven't changed the destination. The companies that will thrive in 2035 are those that continue to use data to drive out inefficiency, regardless of which way the political winds blow. Waiting for absolute certainty is a strategy for stagnation – efficiency requires action now.