EU Committee Backs 87.5% Car CO2 Reduction by 2035

The European Parliament's Environment Committee has approved proposed changes to EU vehicle emissions regulations, reducing the 2035 CO2 reduction target for new passenger cars from 100% to 87.5% and introducing incentives for low-carbon steel and electric vehicles manufactured in Europe. Adopted on 4 November 2026 with 48 votes in favor, 30 against and two abstentions, the proposals form part of efforts to support the European automotive industry's transition towards lower-emission transport.

 

Under the proposed rules, car manufacturers would be required to compensate for additional emissions equivalent to up to 7.5% of the 2021 fleet-wide reference target through credits for EU-produced low-carbon steel, bringing the reduction requirement to 95%. For vans, lawmakers propose reducing the 2030 emissions target from the existing 50% to 35%, while lowering the 2035 target from 100% to 80%. Until the end of 2034, low-carbon steel credits would be limited to 3% towards meeting specific emissions targets.

 

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The committee also proposed incentives for electric vehicles manufactured in the EU. Small electric cars measuring no more than 4.2 meters would count as 1.4 vehicles when calculating manufacturers' average fleet emissions, while highly efficient electric cars would count as 1.2 vehicles. These multipliers would increase to 1.5 and 1.3 respectively for vehicles registered through social leasing schemes. EU-made electric vans would receive a multiplier of 1.2 until the end of 2034, increasing to 1.4 from 2035.

 

The proposals would also expand the regulatory definition of zero-emission vehicles to include vehicles operating exclusively on qualifying renewable and low-carbon fuels. Massimiliano Salini, the legislation's rapporteur, said:

“Our agreement marks a turning point for the European automotive industry. Registering combustion engine cars without compensation obligations would remain possible, protecting technological freedom and restoring prospects for the entire supply chain. Decarbonization does not mean imposing one technology - we also recognize zero-emission vehicles powered exclusively by renewable fuels that comply with the Renewable Energy Directive, similar to electric ones. Low-carbon steel made in Europe could be used immediately, rewarding European production and strengthening the Union's strategic autonomy".

 

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The committee's position follows the European Commission's December 2025 proposal to revise emissions standards for new cars and vans. The full European Parliament is expected to vote on its negotiating mandate in December 2026 before discussions with EU member states. The proposed revisions have not yet become law, and existing emissions standards remain applicable pending legislative approval.

 

Source: European Parliament