The European Union should relax its CO₂ reduction targets for cars, vans and trucks by allowing longer compliance periods and greater consideration for hybrid vehicles and alternative fuels, the bloc’s automotive industry group said on Wednesday.
The European Automobile Manufacturers’ Association (ACEA) submitted its proposals to the European Commission, which is reviewing vehicle emissions targets by the end of the year. The group warned that achieving a 100% cut in new car and van CO₂ emissions by 2035 is increasingly unrealistic given market challenges, limited charging infrastructure, and rising competitive pressure from China and the United States.
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According to ACEA, electric vehicles currently account for 15.8% of new car sales in the EU, while electric vans and trucks represent 8.5% and 3.6%, respectively. The group proposed that compliance with the 2030 car emissions targets be measured over an average five-year period from 2028 to 2032, instead of annually. It also called for small EVs to receive “super credits” toward meeting targets and urged regulators to give plug-in hybrids and range-extender vehicles a larger role.
ACEA also wants vehicles using carbon-neutral fuels to be treated on par with electric models and for new incentives to support decarbonisation technologies such as green steel. For vans, it recommended meeting the 2025 CO₂ target over a five-year window through 2029 and revising the 50% reduction target for 2030. The association also requested that truck emissions rules be reviewed before the planned 2027 deadline to prevent manufacturers from incurring penalties under current standards.
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Environmental group Transport & Environment (T&E) criticised the proposals, saying they would “create loopholes” and lower ambition. The group said ACEA’s approach would effectively mean carmakers only need to reach a 52% electric vehicle market share by 2035.
ACEA rejected that assessment, saying flexibility would not hinder progress toward electrification but would “ensure the bloc’s economic security.” The association said the vast majority of vehicles sold in the coming decade will still be electric, but warned that more pragmatic regulation is needed to sustain the industry’s transition amid geopolitical and economic pressures.