The European Union could fast-track petrol and diesel car ban rules with new legislation on rental vehicles. Officially, the EU is set to ban the sale of brand-new petrol and diesel vehicles from 2035, five years later than Labour’s plan for the UK.

However, the European Commission is understood to be drawing up legislation to ban rental companies and large companies buying petrol and diesel models from the end of the decade. According to German newspaper Bild, rental firms would only be allowed to buy EVs to replace any cars lost from their fleet. However, with many rental firms only keeping models for around two years, the rules could see the industry transition to eco-friendly models much sooner than 2035 and possibly ahead of the UK ban in 2030.

Nico Gabriel, CEO of rental car provider Sixt, stressed the ban on petrol and diesel vehicles for rental firms could be an impractical policy, with customers likely to vote with their feet.

He said: "Vacationers will hardly use rental cars anymore, and consumers will practically no longer be able to lease vehicles.”

German Chancellor Friedrich Merz is also understood to be against the proposal, claiming the new rule “completely misses the point of the current joint needs we have in Europe.

According to Automotive News Europe, Merz said: “We must not allow it to be destroyed by focusing on technologies that might not be market-ready enough by a given date for one to rely exclusively on that single technology.”

There are fears it could be hard to convince tourists to try out electric vehicles. Motorists are likely to pay more to rent out an electric car versus a traditional petrol and diesel model.

Road users may also struggle to find electric car charging bays to top-up their vehicle with electricity, especially those heading on road trips around rural areas.

It is understood that the proposal around rentals is being discussed with car manufacturers. The EU confirmed that a request to clarify CO2-standards for corporate fleets came from the industry with the EU now conducting an impact assessment.

However, they told Express.co.uk that no decisions at have been taken at a political level but warned proposals would be technology neutral.

But, they have not gone into more specific details or whether rental firms will be banned from buying combustion models after 2030.