California sets a new benchmark for banning combustion vehicles

Enrique Dans
Enrique Dans
Published in
3 min readAug 26, 2022

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IMAGE: A car’s tailpipe emitting toxic smoke and fumes
IMAGE: Ruben de Rijcke (CC BY-SA)

California, the United States’ biggest automotive market and that traditionally sets legislation trends in the rest of the country, has announced a ban the sale of new gasoline or diesel vehicles from 2035, a move the state’s governor says is “the end of the internal combustion engine.”

Given that more than a dozen states usually follow California’s decisions, more than a third of the total US market will be affected. The impact on the market and innovation will be huge, and will doubtless make many people think hard about the next car they buy, given that brands will stop investing in diesel and petrol and focus on electric vehicles.

In addition, the standard sets mandatory intermediate targets: by 2026, 35% of vehicles sold in the state must be zero-emission, a requirement that will rise to 68% by 2030.

Transportation and the internal combustion engine are one of the most important sources of emissions on the planet, and the decision by one of the world’s most influential markets is expected to strongly affect the automotive market. California’s move overlaps with the passage through Congress of the landmark Inflation Reduction Act, which envisages a series of major environmental changes, including halving emissions by 2030, and which many see as a turning point and a powerful

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)