The European Parliament’s Environment Committee has supported a proposal to reduce the European Union’s 2035 CO2 emissions reduction target for new passenger cars from 100% to 87.5%, while introducing additional incentives for electric vehicles manufactured in the bloc.
The draft legislation was adopted on Wednesday with 48 votes in favour, 30 against and two abstentions, according to a European Parliament statement.
The proposal is part of a broader package intended to support the European automotive industry’s transition to cleaner mobility while giving manufacturers more flexibility in meeting emissions requirements.
Proposed CO2 Targets for Cars and Vans
Under the proposed changes, automakers would be required to reduce fleet-wide CO2 emissions from new passenger cars by 87.5% by 2035 compared with 2021 levels.
Credits for using low-carbon steel produced in the EU could account for an additional 7.5 percentage points, bringing the reduction target to 95%.
For light commercial vehicles, the committee proposed lowering the 2030 emissions reduction target to 35%. This compares with the existing 50% requirement and the European Commission’s proposed target of 40%.
The 2035 target for vans would also be reduced, from 100% to 80%, with manufacturers able to use low-carbon steel credits subject to a maximum of 7.5 percentage points.
The draft would also broaden the definition of zero-emission vehicles to include cars and vans powered exclusively by eligible renewable and low-carbon fuels.
Incentives for EU-Made Electric Vehicles
The proposal introduces a super-credit mechanism for small and highly efficient electric vehicles manufactured in the European Union. The system would allow qualifying vehicles to carry additional weight when calculating manufacturers’ compliance with fleet emissions targets.
Under the proposed multipliers, EU-made electric cars measuring no more than 4.2 metres would count as 1.4 vehicles, while highly efficient models would count as 1.2 vehicles.
The multipliers would be increased further for vehicles registered under social leasing schemes.
The mechanism is intended to encourage automakers to develop and sell smaller and more energy-efficient electric vehicles produced within the EU.
Full Parliament Vote Expected in December
The committee’s approval does not make the proposed changes final. The full European Parliament is expected to vote during its December plenary session to establish its negotiating position before discussions with EU governments.
Existing EU regulations require a 100% reduction in CO2 emissions from new cars and vans by 2035 compared with 2021 levels, effectively ending sales of new conventional petrol and diesel vehicles.
The European Commission previously proposed reducing the 2035 target for passenger cars to 90%. The committee’s latest position would allow a lower effective reduction requirement through the proposed steel credits and other flexibility measures.
