The European Commission has announced plans to withdraw its requirement for a 100% CO₂ emissions reduction from new cars and vans by 2035, marking a major shift in its approach to industrial sustainability. Unveiled as part of the newly released Automotive Package, the proposal would instead require automakers to achieve a 90% reduction in tailpipe emissions by 2035, with residual emissions offset through the use of EU-produced low-carbon steel, e-fuels, and biofuels.
The revised target would allow a broader mix of vehicle technologies to remain viable, including hybrids, plug-in hybrids, range extenders, internal combustion engine vehicles, alongside battery electric and hydrogen vehicles. The original 2035 zero-emissions mandate was adopted in 2023 under the EU’s Fit for 55 framework, which aims to cut greenhouse gas emissions by 55% by 2030 compared to 1990 levels. That package also set interim targets of 55% CO₂ reductions for new cars and 50% for new vans by 2030, relative to 2021 levels.
Automakers have increasingly warned that slower EV adoption and shifting global policy dynamics—particularly in the U.S.—have made the original targets difficult to achieve. In response, the Commission, under President Ursula von der Leyen’s Competitiveness Compass, has proposed regulatory updates through an industrial action plan for the automotive sector. These include easing the 2030 emissions reduction target for vans to 40%, introducing banking and borrowing flexibility for car manufacturers between 2030 and 2032, and addressing near-term challenges in electric van deployment.
The Automotive Package also proposes mandatory zero- and low-emission vehicle targets for large companies’ corporate fleets from 2030 and introduces a €1.8 billion Battery Booster initiative, including €1.5 billion in interest-free loans to support EU battery cell manufacturing and strengthen regional supply chains
