According to a senior legislator, the bloc intends to decrease the proposed CO₂ emissions reduction for new vehicles from 100% to 90%.
Senior MEP Manfred Weber has informed journalists that the EU is retracting its plans for a de facto ban on internal combustion engines by 2035. The decision is anticipated to be formally announced by Brussels next week.
Bild reported on Friday that while the bloc had previously approved a fleet-wide objective to reduce CO₂ emissions from new cars and vans by 100% by 2035 relative to 2021 levels, this mandate is now set to be reduced.
Weber, who leads the center-right European People’s Party, informed the publication that “automakers will now be required to achieve a 90% reduction in CO₂ emissions for their fleet targets starting from 2035.”
Major European automakers such as Mercedes-Benz and BMW have criticized the regulation, which was adopted in March 2023 and demands substantial CO₂ emissions reductions for new vehicles.
Reuters reported last month that German Chancellor Friedrich Merz had corresponded with European Commission President Ursula von der Leyen, requesting more flexibility. “Large portions of Europe’s automotive sector, including in Germany… face an exceptionally challenging economic climate, necessitating swift corrective measures to European framework conditions to secure the industry’s future on the continent,” he was quoted as stating.
All three companies—Volkswagen, BMW, and Mercedes-Benz—have reported declining delivery figures this year, attributed to falling demand in Asia and increasing competition from domestic electric vehicle manufacturers.
In addition to stringent climate regulations and US tariffs, automakers throughout the bloc have struggled with escalating energy costs. Since the Ukraine conflict intensified in February 2022, the EU has significantly cut imports of Russian oil and gas, turning to costlier substitutes.