The European Commission is set to water down the bloc's plan to end sales of new petrol and diesel vehicles from 2035

The European Commission is set to scale back a controversial plan to end sales of new combustion-engine vehicles by 2035, following months of pressure from some member states and the automotive industry, according to media reports.

The move would soften current EU rules requiring all new cars and vans sold from 2035 to have zero emissions, with Brussels expected to publish a revised proposal later on Tuesday.

Under the reported plan, the 2035 requirement would shift to a 90% cut in CO2 emissions from 2021 levels, instead of the current 100% target, allowing continued sales of some plug-in hybrids and range extenders that burn fossil fuel.

Automakers would be required to offset the remaining emissions by using lower-carbon steel made in the EU and fuels such as synthetic e-fuels or non-food biofuels, including agricultural waste and used cooking oil, Reuters wrote.

The commission has also eased the 2030 target for vans, lowering the required CO2 cut from 50% to 40%.

Some industry insiders questioned whether the shift would strengthen the bloc's long-term competitiveness. "Moving from a clear 100% zero-emissions target to 90% may seem small, but if we backtrack now, we won't just hurt the climate. We'll hurt Europe's ability to compete," said Michael Lohscheller, CEO of Swedish EV maker Polestar.

William Todts, executive director of clean transport advocacy group T&E, criticized the idea, saying: "Clinging to combustion engines won't make European automakers great again."

The change in course for the EU's flagship green deal, which was adopted in 2023, reportedly follows lobbying by major automakers and calls from several countries, including Germany and Italy. Mounting trade tensions with the US and intense competition with China, a bumpy shift to EVs, supply chain disruptions, and soaring energy costs after the loss of Russian gas have continued to hurt the EU's struggling industry, triggering shutdowns and bankruptcies.

Any changes would still need to be backed by EU member states and the European Parliament before they can take effect.