Two European Parliament committees voted on Wednesday to scrap a rule that would have required company car fleets to include a set share of zero-emission vehicles. The targets will now be only advisory.
The decision is part of a wider package of car industry rules the European Union is using to cut carbon emissions.
The EU originally planned to stop sales of new cars with combustion engines from 2035. Late last year, after pressure from the car industry, the European Commission proposed softer overall targets. The European Parliament is expected to weaken them further.
The full Parliament will vote on the package in December. That vote will set MEPs' position for talks with the Council of the EU, where member states' governments are still discussing the issue.