Technology is the best way to solve this, and there have already been major advances in this area, but governments being governments think that regulation is the only answer. The automotive market is providing an appropriate answer to that if you look at the lack of demand for EVs. There is probably also the realisation in Europe that the Chinese ability to out-compete in the EV car market means that cutting off the ICE market prematurely will have a major negative impact on a major industrial sector in EU.
But anyway, you think that the EU has got it wrong?
We have already caused massive damage to our climate. We have the technology we need to stop making things worse (even to improve thnings but that seems off any political agenda).
To wait around for new technology whilst continuing to worsen an already bad situation is just daft.
It's a case of hidden costs vs corporate profits. Climate damage costs us massively eg crop yields, property damage, immigration, health impacts. At the moment corporations want business as usual so they can keep their profits as we will all suffer and pay for the damage. As with eg Ultra-processed foods, self-regulation doesn't work when highest profits are the driving motive.
Hence EU has got it wrong. Time for politicians (incl. in UK) to act in the interests of the real human beings rather than corporations.