EU Lawmakers Move to Water Down CO2 Emissions Reduction Requirements for Cars

Lawmakers in the European Parliament’s Environment Committee (ENVI) adopted a position in a 48-30 vote to ease CO2 emissions reduction requirements for new cars and vans, supporting a European Commission proposal to ease regulations that would have effectively ended the sale of new internal combustion cars and vans in the EU by 2035.

The ENVI committee’s position pushes for a sharper easing in emissions cuts than the Commission’s proposal, with the lawmakers looking to set an 87.5% emissions reduction target, compared with the Commission’s 90%, and the current regulation’s 100% CO2 reduction requirement. Parliament is expected to vote on its position for negotiation with EU governments in December.

The EU’s current rules, requiring a 100% reduction in CO2 emissions from new cars from 2035, formed part of a series of clean mobility regulations adopted by EU lawmakers in 2023, under the Commission’s “Fit for 55” strategy to cut greenhouse gas (GHG) emissions by 55% by 2030, compared to 1990 levels.

Over the past few years, however, automakers have warned that a slower than expected electric vehicle uptake and a significant shift in policy direction in the U.S. under the Trump administration away from supporting a shift to EVs have made the targets unrealistic.

In December 2025, the Commission released its “Automotive Package,” proposing to adjust the current regulation with an updated requirement for carmakers to meet a 90% tailpipe emissions reduction target by 2035, and to compensate for remaining emissions through the use of EU-made low-carbon steel and e-fuels and biofuels. The Commission said that the new target would allow a range of vehicle technologies to remain in play, including hybrids, plug-in hybrids, and range extenders, as well as internal combustion engine vehicles, in addition to full EVs and hydrogen vehicles.

The ENVI committee’s proposal would lower the target for CO2 emissions reductions to 87.5%, and would also cap requirements for automakers to compensate for 7.5% of the remaining emissions through the use of credits for low-carbon steel made in the EU.

For vans, the committee voted to propose a 35% reduction target by 2030, compared with 40% in the Commission text and 50% under the existing rules, and to decrease the current 2035 target of 100% to 80%, with the use of  low-carbon steel credits also capped at 7.5%.

As part of the new position, the committee also proposed to modify the definition of “zero-emission vehicles” to include both vehicles with zero CO2 tailpipe emissions and vehicles that use only renewable and low-carbon fuels that meet certain criteria, or “vehicles running exclusively on eligible fuels” (VEEFs).

Rapporteur Massimiliano Salini 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. Decarbonisation does not mean imposing one technology – we also recognise as zero-emission vehicles powered exclusively by renewable fuels that comply with the renewable energy directive, similar to electric ones.”