Overview
- The European Commission is set to propose cutting the 2035 tailpipe CO2 goal from 100% to roughly 90%, allowing up to about 10% non‑zero‑emission sales.
- Automakers could keep selling plug‑in hybrids and range‑extender models after 2035 if they use CO2‑neutral biofuels or synthetic e‑fuels.
- Flexibilities would be tied to offset rules and crediting mechanisms that are still being negotiated, including green steel, pooling of manufacturer credits, and higher weightings for small EVs.
- A broader package is expected to push higher electric shares in corporate fleets, which account for about 60% of EU new car registrations, and to create a new category for small EVs that earns extra credits and may face local‑content conditions.
- Germany, Italy and the auto lobby back the shift as vital for competitiveness, while EV makers such as Polestar and green groups warn it weakens investment signals; any proposal must still win approval from EU governments and the European Parliament.