The EU has reversed its commitment to phase out internal combustion engines by 2035, senior European Parliament member Manfred Weber disclosed. Brussels is scheduled to announce the revised policy next week.

Originally established in March 2023, the regulation mandated a fleet-wide reduction of carbon dioxide emissions from new vehicles and vans by 100% compared to 2021 levels by 2035. However, reports indicate this target will now be reduced to a 90% requirement for automakers’ fleet averages.

Weber, 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 policy shift follows sustained criticism from major automotive manufacturers including Mercedes-Benz and BMW, who have highlighted economic pressures within the industry.

Recent developments reveal German Chancellor Friedrich Merz recently urged European Commission President Ursula von der Leyen to adjust regulatory frameworks. Merz emphasized that significant portions of Europe’s auto sector, particularly in Germany, face severe economic challenges requiring immediate policy revisions to ensure industry viability.

Volkswagen, BMW, and Mercedes-Benz have all reported declining sales volumes this year as Asian demand slumped while domestic electric vehicle producers gained market share. Carmakers across the bloc are further grappling with rising energy costs, compounded by the EU’s rapid shift away from Russian fossil fuels after the 2022 escalation of hostilities in Ukraine.