EU walks back plans to phase-out of combustion Engines by 2035

(MENAFN) The European Union is set to relax its plans for a complete phase-out of internal combustion engines by 2035, according to senior EU lawmaker Manfred Weber. Reports indicate that Brussels may formally announce the revised approach next week.

Previously, the EU aimed to cut CO₂ emissions from new cars and vans by 100% by 2035 compared to 2021 levels, but the target is now expected to be reduced.

“From 2035 onwards, a 90% reduction in CO₂ emissions will now be mandatory for automakers’ fleet targets,” Weber, head of the center-right European People’s Party, stated.

The regulation, adopted in March 2023, has faced pushback from leading European car manufacturers, including Mercedes-Benz and BMW.

Last month, reports indicated that German Chancellor Friedrich Merz wrote to European Commission President Ursula von der Leyen seeking more flexibility. “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,” he said.

Major German automakers, including Volkswagen, BMW, and Mercedes-Benz, have experienced declining deliveries this year amid reduced demand in Asia and growing competition from local electric vehicle producers.

In addition to stringent climate regulations and US tariffs, European carmakers have been hit by rising energy costs. Since February 2022, following the escalation of the Ukraine conflict, the EU has cut imports of Russian oil and gas, turning to more expensive alternatives.

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