Overview
- The proposal replaces the 100% zero‑emission requirement with a 90% fleet CO2 reduction in 2035, enabling a small share of new thermal and plug‑in hybrid sales under tight limits.
- Any emissions linked to that flexibility must be fully offset in advance via credits, including use of low‑carbon steel and advanced or renewable fuels.
- Brussels unveiled industrial measures such as €1.5 billion in interest‑free loans for the EU battery sector, a local‑content preference for subsidized projects, and supercredits for a new small European EV category (M1e).
- Automakers and several member states including Germany, Italy and Poland welcomed the shift, while NGOs and countries like France and Spain warned it weakens electrification and the nascent battery ecosystem.
- The package now moves to the EU legislative process for scrutiny by Parliament and member states, with further plans to encourage the greening of professional fleets.