BRUSSELS, Dec 8 - The European Union plans to delay to December 16 legal proposals to expand its carbon border levy and potentially weaken a 2035 ban on new CO2-emitting cars, according to a draft European Commission agenda, seen by Reuters.

The plans are being watched closely by carmakers and governments, including Germany and Italy, which have demanded the EU revise its 2035 autos CO2 emissions policy, which in its current form would effectively ban sales of new combustion engine cars.

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The proposals had initially been due for publication on Wednesday.

Commission officials were still negotiating the timings on Monday, and the draft agenda could still change before it is published. Some EU officials suggested the autos proposals could be delayed further, into 2026.

A Commission spokesperson declined to comment on the draft agenda seen by Reuters.

Brussels is preparing proposals to expand its upcoming carbon border tariff to more downstream products such as washing machines, and attempt to prevent foreign companies from circumventing the world-first measure.

The autos proposals are being prepared amid lobbying from European carmakers for greater flexibility on the 2035 car policy, including by allowing sales of plug-in hybrids, and combustion engine cars that run on so-called CO2-neutral fuels, to continue beyond this deadline.

Europe's auto industry says it needs this flexibility to cope with slower than expected electric vehicle sales, and fierce competition from China.

But weakening the policy could hamper the EU's climate targets, since it would mean more CO2-emitting cars remain on Europe's roads by 2050, when the EU has committed to reach net zero emissions across its economy.

https://www.reuters.com/sustainability/climate-energy/eu-delay-proposals-carbon-border-tariff-auto-industry-draft-document-shows-2025-12-08/