Two European Parliament committees have backed proposals to ease the European Union’s planned 2035 CO₂ emissions requirements for new cars, supporting a compromise that could allow some new combustion engine and hybrid vehicles to remain on the market beyond that date.
The Industry and Transport Committees voted separately on 22 October in favour of a proposal negotiated by the European People’s Party (EPP), the Socialists and Democrats (S&D), and Renew Europe. The votes mark progress for the three political groups’ compromise, although the proposal still requires further parliamentary and member-state approval.
Proposed CO₂ Target Would Fall Short of 100%
Under the compromise, automakers would need to reduce CO₂ emissions from their new-car fleets by 95% by 2035 compared with 2021 levels, rather than achieving a 100% reduction.
Manufacturers could receive an additional 7.5 percentage points of emissions reduction through the use of climate-friendly steel produced in Europe. Under the proposal, this could lower the effective emissions reduction requirement to 87.5%, potentially leaving room for new registrations of combustion engine and hybrid vehicles after 2035.
The Industry Committee approved the proposal with 49 votes in favour, 27 against and five abstentions. In the Transport Committee, the result was 27 votes in favour, 18 against and one abstention.
According to Handelsblatt, members of the EPP, S&D and Renew Europe supported the compromise in the Industry Committee, while members of the Greens/EFA, the Left and several right-wing political groups opposed it.
European Commission Proposal Sets a Different Framework
The European Commission presented its Auto Package in late 2025 in response to concerns about the competitiveness of the European automotive industry.
The Commission proposed a 90% reduction in fleet CO₂ emissions by 2035 compared with 2021, rather than the existing 100% reduction requirement. The remaining emissions would need to be fully compensated through measures involving green steel and climate-friendly fuels.
The parliamentary compromise differs by setting a 95% reduction target while allowing credits for European low-carbon steel, without requiring full compensation for the remaining emissions up to the 100% threshold.
The debate concerns the practical effect of the EU’s planned 2035 rules, which would otherwise effectively prevent new cars with combustion engines from being registered unless they meet the applicable zero-emission requirements.
Germany and France Seek a Joint Position
German Chancellor Friedrich Merz and French President Emmanuel Macron have reportedly agreed on a separate position supporting a 90% CO₂ reduction by 2035 without compensation for the remaining emissions.
The reported Franco-German position could influence negotiations among EU member states in the Council. Germany has supported easing the requirements, while France has previously taken a more restrictive position on combustion engine vehicles.
The reported agreement also links Germany’s support to French backing for proposed “Buy European” requirements, which would favour European production and supply chains.
Further Votes Still Required
The Environment Committee is expected to vote on the Auto Package in early November, followed by a likely plenary vote in December.
If approved by the European Parliament, the proposal would then require agreement from the Council of the European Union, representing member-state governments. Parliament can approve legislation by a simple majority, while the Council generally requires a qualified majority representing at least 15 member states and 65% of the EU population.
The final provisions could still change during negotiations. Until the legislative process is completed, the existing EU requirements remain in force, and the committee votes do not constitute a final amendment to the 2035 rules.