EU lawmakers agree to ease 2035 CO₂ emission targets for cars, allowing some internal combustion engines and biofuels, while promoting affordable electric vehicles.
European Parliament revises emission target
The European Parliament's three major political groups have agreed to adjust the 2035 target for reducing CO₂ emissions from new cars, lowering the reduction from 100% to 87.5%. This change could allow for the continued use of internal combustion engines beyond 2035 under certain conditions.2035 rule relaxed from 2023 agreement
The original rule, part of the "Fit for 55" package adopted in 2023, mandated that new cars registered in the European Union must not emit CO₂ at the tailpipe from 2035. The European People's Party, the Socialists and Democrats, and Renew Europe have agreed to reduce this requirement, going beyond the European Commission's proposed 90% reduction.Offsetting emissions with low-carbon materials
The revised proposal allows manufacturers to offset 12.5% of their emissions using low-carbon steel produced in the EU. Additionally, vehicles powered by renewable fuels, e-fuels, and biofuels will be recognized in the calculation of emission targets, though specific criteria for these fuels remain to be defined.Incentives for affordable electric cars
The agreement includes incentives for "e-cars," small, compact, and affordable electric vehicles. A system of supercredits would allow manufacturers to count these vehicles more favorably in their fleet emissions calculations. However, this does not guarantee lower prices, as manufacturers must still produce these cars at reasonable costs.Next steps for the revised regulation
The revised regulation must be formally validated by the relevant political groups and then serve as a basis for negotiations between the European Parliament and member states. The process could take until spring 2027, with the final text potentially changing before it is finalized.Industry reaction and uncertainty
For car manufacturers, the revised rules offer some flexibility but also create uncertainty. While they are investing heavily in electric vehicles, the changing regulations complicate long-term planning and send mixed signals to consumers and the industry. Brussels is trying to balance climate goals with economic realities, but the success of this new balance remains uncertain.
