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EU Gets Landmark Deal to Phase Out Combustion Engine by 2035

  • Governments reach agreement; more talks follow for final step
  • Deal includes stronger carbon market, improved price controls
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European Union countries endorsed a push to eliminate carbon emissions from new cars by 2035, effectively heralding the end of the era of the internal combustion engine.

Environment ministers struck a deal on the proposal after Italy, home to Ferrari NV and Automobili Lamborghini SpA, gave up demands for a five-year delay in the EU’s plan for automakers to clean up their fleet. Italian Ecological Transition Minister Roberto Cingolani told his counterparts earlier on Tuesday he was “satisfied” with a compromise proposed by Germany that could enable the use of carbon-neutral fuels after 2035.