The European Commission is proposing a reduction to zero of CO2 emissions from new cars sold in the bloc by 2035 in a plan that will effectively ban the sale of cars with gasoline and diesel engines.
The Commission also seeks a 55 percent reduction of CO2 emissions by 2030, lifting an earlier target of a 37.5 percent reduction by the end of the decade.
The proposals are part of a broad climate package unveiled on Wednesday that will accelerate a switch to electric propulsion.
Environmental campaigners welcomed the Commission's proposal.
"This is a turning point for the auto industry and good news for drivers," said William Todts, executive director of the Transport & Environment green lobby group based in Brussels.
"The new EU rules will democratize electric cars and give a major boost to charging, meaning clean cars will soon be affordable and easy to charge for millions of Europeans," Todts said in a statement.
The auto emissions goal is part of the Commission's Fit for 55 package announced on Wednesday to reduce net greenhouse gas emissions by 55 percent from 1990 levels by 2030 in a step toward "net zero" emissions by 2050.
"We are going to ask a lot of our citizens. We are also going to ask a lot of our industries, but we do it for good cause," EU climate policy chief Frans Timmermans said during a press conference. "We do it to give humanity a fighting chance."
The measures will require approval by member states and the European parliament, a process that could take two years.
Some European automakers have already announced they will switch to zero-emissions cars in Europe, but the 2035 target will meet with opposition in countries with major auto industries such as Germany and France.
A diplomat from one EU country said the success of the package would rest on its ability to be realistic and socially fair, while not destabilizing the economy.
"The aim is to put the economy on a new level, not to stop it," the diplomat said.
Reuters contributed to this report