EU abandons planned ban on new ICE vehicles, EPP’s Weber says

Plans to impose an effective ban on the sale of new cars with combustion engines in the European Union have been dropped, according to Manfred Weber, president of the European People’s Party (EPP), the largest political group in the European Parliament – although the changes have yet to be formally announced or adopted by EU institutions.

“For new registrations from 2035 onwards, a 90% reduction in CO₂ emissions will now be mandatory for car manufacturers’ fleet targets, instead of 100%,” Weber said. He added that there would also be no requirement to reach a 100% reduction from 2040 onwards.

“This means that the technology ban on combustion engines is off the table,” Weber told Bild. “All engines currently manufactured in Germany can therefore continue to be produced and sold.”

The comments mark a significant shift from existing EU rules, which aim to cut carbon emissions from new cars to zero by 2035, effectively banning the sale of new petrol and diesel vehicles. Weber said the revised approach would send an important signal to the automotive sector and help protect jobs.

“It sends an important signal to the entire automotive industry and secures tens of thousands of industrial jobs,” he said, reflecting growing concern over the future of one of Europe’s most important industries.

The reported change follows sustained pressure from at least seven EU member states – Bulgaria, the Czech Republic, Germany, Hungary, Italy, Poland and Slovakia – which said earlier this week that while they support emissions reductions, EU legislation should be based on “technological neutrality.” Such an approach would give countries more freedom to decide how they meet climate goals, rather than mandating a specific technology.

Several major carmakers have also lobbied for softer rules. Volkswagen, Stellantis, Renault, Mercedes-Benz and BMW have all argued against a strict ban, saying consumers – not regulators – should determine which technologies succeed.

The pushback has intensified as Chinese manufacturers have flooded the EU market with cheaper electric vehicles, increasing competitive pressure on European carmakers, which have been slower to scale up electric production. Industry leaders have increasingly warned that the current regulatory framework risks undermining the bloc’s industrial base.

“Today’s CO₂ regulation focuses only on new vehicle supply, without doing enough to spark real demand — whether through infrastructure, total cost of ownership, or incentives — and without linking it with competitiveness and resilience,” de Vries said.

While the European Commission has not formally confirmed a policy change, Weber’s remarks suggest that the EU is preparing to rethink one of the cornerstone measures of its green transition as political and economic pressures mount.

What would this mean for the UK?

Although the UK is no longer an EU member, any shift in Brussels could have significant implications for Britain’s car industry and climate policy. The UK currently plans to ban the sale of new petrol and diesel cars by 2030, with the ban on new hybrid vehicles set to be phased out by 2035.

If the EU formally abandons a full combustion-engine ban, pressure could grow on the UK government to revisit its own targets to remain aligned with its largest automotive export market. UK-based manufacturers, many of which operate integrated supply chains with Europe, may also push for greater regulatory flexibility to stay competitive, while a divergence in rules could complicate trade and model approvals on both sides of the Channel.

The EU is expected to make an official announcement on Tuesday 16 December.