The European Commission has proposed lifting the EU ban on the sale of new petrol and diesel vehicles from 2035. Instead, it proposed requiring manufacturers to reduce exhaust emissions from new vehicles by 90 percent.
The remaining 10 percent would have been offset through credits, which could be obtained, among other things, by using steel with a low carbon footprint.
The Franco-German agreement removes this requirement and stipulates that manufacturers will not have to offset the remaining emissions, diplomatic sources say.
It also makes it much easier for car manufacturers to meet emissions targets.
Any EU agreement must be approved by the Council of Ministers.