EU Commission Proposes Easing 2035 Car Rule With 90% CO2 Cut and Conditional Combustion

Overview

• The proposal replaces a full 2035 phaseout with a 90% tailpipe CO2 reduction target, allowing the remaining 10% to be offset using EU low‑carbon steel or synthetic and renewable fuels.
• Manufacturers could keep selling a limited share of petrol and diesel models as well as plug‑in hybrids, range extenders and mild hybrids after 2035 if they meet the conditions.
• Compliance would be eased in the early 2030s through credit banking and borrowing that averages emissions for 2030–2032, and the 2030 CO2 target for vans would fall from 50% to 40%.
• The package also seeks to boost small EU‑made electric cars with supercredits and a 10‑year exemption from certain safety requirements, alongside measures targeting corporate fleets.
• The measure now goes to negotiations with the European Parliament and EU member states, with automakers welcoming flexibility and environmental groups warning of weaker climate ambition.