Overview
- The European Commission adopted a proposal to cut the 2035 target for new-car tailpipe CO2 from 100% to 90%, with the remaining 10% to be offset via credits from low‑carbon EU steel, e‑fuels or biocombustibles.
- Sales of plug‑in hybrids and range‑extended vehicles could continue beyond 2035 under conditions tied to the new offset and credit system.
- Other flexibilities include lowering the 2030 CO2 target for vans from 50% to 40%, supercredits for EU‑made small electric cars, and a 2030–2032 banking and borrowing mechanism, plus national targets to green corporate fleets.
- The package adds industrial supports such as a €1.8 billion Battery Booster program and an “Automotive Omnibus” to reduce regulatory burdens.
- Member states are split, with Germany and Italy backing flexibility and Spain’s Pedro Sánchez calling the move a “historic error,” while industry reaction ranges from ACEA’s cautious approval to Stellantis’ criticism; Parliament and governments will now negotiate the final law.