BRUSSELS, Belgium (AFP) — European Union countries and lawmakers recently began final negotiations on the phasing out of C02-emitting vehicles ahead of a total ban in 2035, notably by focusing on tougher restrictions by the end of this decade.

The high stakes talks, between representatives of the European Council fronting for the 27 EU countries and the European Parliament was to start late and continue until agreement was reached.

The negotiations underpin the bloc's transition towards a carbon-neutral future — a key pledge by commission chief Ursula von der Leyen.

Cars currently account for 12 percent of all CO2 emissions in the 27-member EU bloc, while transportation overall accounts for around a quarter.

There will also be discussion over a so-called "Ferrari amendment" which would give a loophole for luxury carmakers — those producing fewer than 10,000 vehicles a year — on C02 standards for another five years.

Some negotiators, particularly from the commission, are understood to want that exception removed.

Conservative lawmakers and Germany are reluctant on some of the targets, fearing the costly burden it will place on EU automakers competing against global rivals with looser targets.

The 2035 ban on all vehicles with internal combustion engines was voted for by the European Parliament in June.

That backed a commission proposal unveiled last year, part of an ambitious climate target to cut emissions by 90 percent by 2035 compared to a 2021 baseline.

Around 12 percent of new cars sold in the European Union are electric vehicles as its consumers shift away from C02-emitting models as energy costs and greener traffic regulations bite.

While the EU is working toward its ban on the sale of petrol- and diesel-fueled cars by 2035, China — the world's biggest automobile market — wants at least half of all new cars to be electric, plug-in hybrid or hydrogen-powered by that year.