Brussels has moved to dilute the EU’s effective 2035 “all new cars must be zero-emission” end-point, proposing a new compliance path that still pushes electrification but leaves room for a small tail of combustion-powered sales if emissions are offset.
The shift sits inside the European Commission’s new Automotive Package, released today, as the bloc tries to protect jobs and competitiveness while keeping climate targets in sight.
The Commission’s transport department said the revised CO2 standards would keep a “clear market signal towards electrification” but add flexibility and a technology-neutral structure.
From 2035, carmakers would need to hit a 90% tailpipe emissions reduction target, with the remaining 10% compensated through measures such as low-carbon steel “Made in the Union” and the use of e-fuels and biofuels.
That is a material change in direction.
Under the earlier policy trajectory, new passenger cars and vans sold in the EU were set to be effectively 100% zero-emission by 2035.
Industry pressure has been building for months, and the Commission’s package now sets out a softer 2035 end-point than earlier plans implied.
Brussels is also trying to tackle demand, not just supply.
A separate Commission proposal targeted corporate fleets, which it said accounted for 60% of new car registrations and up to 90% of new van registrations across the EU.
From 2030, member states would be required to ensure that a defined share of new corporate registrations by large companies is zero- and low-emission, including a sub-target for zero-emission cars and vans.
The Commission argued this should speed up the flow of newer vehicles into the used market and create a more predictable demand signal for manufacturers and charging providers.
On batteries, the package includes a €1.8 billion (RM8.6bil) “Battery Booster”, including €1.5 billion (RM7.2bil) in interest-free loans aimed at European cell makers.
The Commission also flagged an “automotive omnibus” to cut administrative burden and introduces a new category for “small affordable cars”, plus revised consumer labelling rules.
