New Delhi, Dec. 18 -- European officials on Tuesday moved to ease their ban on sales of cars with internal combustion engines by 2035, responding to pressure from governments and automakers who argued that the industry needed more flexibility in finding ways to reduce emissions of carbon dioxide and help achieve EU climate goals.

The proposal from the EU's executive commission would change provisions of 2023 legislation requiring average emissions in new cars to equal zero, or a 100% reduction from 2021 levels.

The new proposal would require a 90% emissions reduction. That means in practical terms that most cars would be battery-only but would leave room for some cars with internal combustion engines.

Automakers would have to compensat...