Under the move,passed late on Tuesday,petrol and diesel cars will attract significant financial penalties in 27 European countries,effectively ending the sale of new fossil fuel vehicles.
Motoring industry experts said the restriction would ultimately impact cars sold in Australia,and that the country urgently needed new policies to ensure it was not forced to accept vehicles that no other developed country would allow.
The European Union’s new law – approved by 340 votes in favour to 279 against – will require all cars and vans sold in 2035 to be zero-emission vehicles.
Automakers will also be required to cut car emissions by 55 per cent in 2030.
Only car brands producing fewer than 1000 vehicles a year will be exempt from the new law.
European Council member Jan Huitema said introducing a zero-emission deadline would help manufacturers innovate and put downward pressure on the price of electric vehicles.