European regulators are rethinking their climate commitments. The EU Commission just signaled willingness to relax the ambitious 2035 zero-emissions mandate for passenger vehicles and commercial vans—a major policy shift driven by pushback from several member states and traditional automakers. What does this signal? When heavyweight economies bend on environmental standards, it ripples across multiple markets: energy sectors, carbon credit markets, and even the broader crypto ecosystem watching ESG trends. The pressure between green ambitions and industrial competitiveness never stops, and policy reversals like this reshape how capital flows globally.