The European Commission will propose abolishing its landmark 2035 combustion engine ban on December 16, marking a dramatic reversal of the bloc’s climate policy following pressure from Germany’s new government and major automakers.
“Next Tuesday, the European Commission will be putting forward a clear proposal to abolish the ban on combustion engines,” Manfred Weber, president of the European People’s Party, said at a press conference in Germany on Friday.
Under the revised plan, automakers would face a 90% reduction in CO₂ emissions for fleet targets from 2035, down from the current 100% mandate that effectively banned new internal combustion engine vehicles.
The 100% target previously planned for 2040 will also be abandoned.
Commission President Ursula von der Leyen made the issue a priority and reached agreement in late-night negotiations with Weber, who had long demanded an end to the ICE phase-out, according to German newspaper Bild, which first reported the deal.
The report has been confirmed by the EU.
“This removes the technology ban for internal combustion engines from the table,” Weber told Bild. “All engines currently manufactured in Germany can continue to be produced and sold.”
The agreement follows a letter from Italian Prime Minister Giorgia Meloni and Polish Prime Minister Donald Tusk urging the Commission to reverse the engine phase-out policy.
German Chancellor Friedrich Merz had also called on von der Leyen to soften the 2035 cutoff, asking her to permit new hybrid and highly efficient combustion engine vehicles beyond 2035 as consumers remain hesitant to buy EVs.
“We’re sending the right signal to the commission with this letter,” Merz said, adding that the German government wanted to protect the climate in “a technology-neutral way.”
Weber framed the decision as balancing climate goals with industrial policy.
“We are fulfilling our two most important promises: we remain on the path to climate neutrality. But we are ensuring technology neutrality,” he said. “This is an important signal for the entire automotive industry. And it secures tens of thousands of industrial jobs.”
Michael Lohscheller, CEO of Polestar, warned earlier this month against weakening the 2035 target.
“Pausing 2035 is just a bad, bad idea. I have no other words for that,” Lohscheller said. “If Europe doesn’t take the lead in this transformation, be rest assured, other countries will do it for us.”
As reported on Thursday, the European Commission and Beijing have resumed tariff talks over the extra duties imposed in October 2024.
The investigation, announced by Commission President Ursula von der Leyen in September 2023, found that China’s EV value chain benefits from unfair subsidization that threatens economic injury to EU producers.
