Toyota seeks EU flexibility on emissions rules

Toyota is proposing new ideas to the European Union about how the automotive industry should evolve after 2035, focusing on allowing more flexibility in reducing carbon dioxide emissions. The company wants certain internal combustion engine vehicles to be considered zero-emission if they run only on renewable fuels, which could change how these vehicles are regulated.

Toyota supports climate goals but asks for adjustments

Toyota is not opposing the EU’s climate goals, which include a 90% reduction in CO2 emissions by 2035. However, it is requesting flexibility in how this goal is achieved and wants to extend the period for meeting 2030 targets from 2028 to 2032. The company believes that the shift to electric vehicles might not happen as quickly as current regulations assume.

Toyota wants to preserve multiple technologies

Toyota argues that a variety of technologies, including hybrid, hydrogen, and renewable fuel-powered vehicles, should be allowed to support the transition to a low-carbon future. The company wants to keep these options open rather than focusing solely on battery-powered electric vehicles.

Toyota aims to strengthen its European presence

As part of its proposal, Toyota is also pushing for the EU to recognize certain business partners, such as Japan, Turkey, and the United Kingdom, in its future production rules. It suggests that European-made vehicles should have 70% European content after three years, including the value of research, engineering, and assembly.

Toyota introduces VEEF concept for renewable fuels

In 2026, Toyota Motor Europe introduced the VEEF concept, which stands for "Vehicles running Exclusively on Eligible Fuels." This proposal aims to classify internal combustion engine vehicles using renewable fuels as zero-emission, giving them the same regulatory benefits as fully electric vehicles.

Toyota tests renewable fuels in Spain

Toyota tested 20 of its vehicles and BMW cars in Spain, all running on 100% renewable fuel supplied by Repsol. The fuel was made from residual biomass, and the test showed no changes in vehicle performance or behavior. No mechanical changes were needed, and the fuel was dispensed at regular service stations.

Toyota wants VEEF included in EU energy directive

Toyota is proposing that VEEF vehicles be included in the Renewable Energy Directive III (RED III), which would allow them to coexist with battery and hydrogen-powered electric cars. This would help gradually reduce emissions from existing internal combustion engine vehicles, but the EU’s acceptance of this proposal is still uncertain.