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European lawmakers push to ease car CO2 emission targets - Finance news and analysis from Global Banking & Finance Review
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European lawmakers push to ease car CO2 emission targets

Published by Global Banking & Finance Review

Posted on November 4, 2026

2 min read

· Last updated: November 4, 2026

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EU Lawmakers Push to Ease 2035 Car CO2 Emission Targets and Fleet Rules

EU Parliament Considers Changes to Car Emission and Fleet Regulations

By Philip Blenkinsop

Background and Proposed Changes

BRUSSELS, Nov 4 (Reuters) - European Union lawmakers backed proposals on Wednesday to weaken the bloc's car emissions and corporate fleet targets, easing requirements on automakers to maximise zero-emission vehicle sales from 2035.

The EU had been on course to end new sales of internal combustion engine cars by 2035. But under industry pressure, the European Commission late last year proposed softening the target for cars to a 90% CO2 reduction, with 10% made up from low-carbon steel and alternative fuels.

Parliamentary Committee Proposals

The European Parliament's environment committee backed instead a proposal from three mainstream party groups for an 87.5% cut, with a 7.5% top-up ​from production using low-carbon steel made in the EU, bringing the total to 95%.

Super Credits for Small or Efficient EVs

Small or highly efficient EVs would also qualify for "super credits", which make it easier for automakers to meet the targets. 

Political and Industry Reactions

The European People's Party, the assembly's biggest group, said it had secured a major victory for the car industry by reversing the combustion engine ban.

T&E, a transport and mobility campaign group, said the vote was another step in the wrong direction and that allowing biofuel-powered cars would divert necessary investment from electrification and undermine the EU auto sector's ability to compete with China.

Next Steps in the Legislative Process

After the committee votes on Wednesday, the full EU assembly is due to vote on the auto package in December. This will establish the parliament's position for subsequent negotiations with the Council, the grouping of EU governments, which is still deliberating on the issue.

Positions of Key Member States

France and Germany, which both have significant car industries, last month agreed the CO2 emission reduction should be 90%, with no need for compensatory measures. They have put this idea to other EU members.

Corporate Fleet Targets

Parliamentary committees also voted on Wednesday to downgrade mandatory targets set on future shares of zero-emission cars in corporate fleets to "aspirational" goals.

(Reporting by Philip Blenkinsop;Editing by Alison Williams, Elaine Hardcastle and Jonathan Spicer )

Key Takeaways

  • Environment committee approved an 87.5% CO₂ reduction target with a 7.5% credit for low‑carbon EU steel, allowing automakers more flexibility than the Commission’s 90% proposal (wsau.com).
  • Under the new deal, small or highly efficient EVs may earn “super credits,” further easing compliance for carmakers (euronews.com).
  • Mandatory targets for zero‑emission corporate fleets were downgraded to “aspirational” goals, reducing pressure on firms to electrify company cars (devdiscourse.com).
  • France and Germany had already agreed on a 90% CO₂ reduction by 2035 without compensatory measures, putting pressure on Parliament’s position (marketscreener.com).
  • The full European Parliament will vote on the auto package in December, setting the stage for negotiations with the Council of EU governments (wsau.com).

References

Frequently Asked Questions

What changes are being proposed to EU car emission targets?
Lawmakers support reducing the 2035 target to an 87.5% CO2 cut, with a 7.5% top-up from low-carbon steel, rather than a full ban on combustion engines.
How do the proposed changes affect automakers?
Automakers would face less stringent zero-emission vehicle sales targets and could use credits for small or efficient EVs to meet requirements.
What role do France and Germany play in the emission target debate?
France and Germany support a 90% reduction target with no need for compensatory measures, influencing discussions among other EU members.
What is the next step in adopting these EU emission target proposals?
The full EU assembly will vote on the proposals in December, setting the stage for negotiations with the Council of EU governments.
How do environmental groups view the softer emission targets?
Campaigners argue that easing targets and allowing biofuel-powered cars would undermine EU investment in electrification and competitiveness.

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