EU Parliament panel backs lower 2035 car emissions target

The European Parliament's environment committee on Wednesday endorsed draft legislation to lower the European Union's 2035 carbon dioxide emissions reduction target for new cars from 100% to 87.5%, while expanding incentives for electric vehicles manufactured within the bloc as part of a broader package aimed at supporting a clean and competitive European automotive industry.

Revised emissions targets

The proposed rules were adopted with 48 votes in favor, 30 against and two abstentions, according to a Parliament statement. Under the new framework, carmakers would reduce fleet-wide CO2 emissions by 87.5% by 2035, with credits linked to the use of low-carbon steel produced in the EU covering an additional 7.5 percentage points to reach a 95% target.

For vans, the committee proposed lowering the 2030 emissions reduction target to 35%, compared with 50% under existing rules and 40% proposed by the European Commission. The 2035 target for vans would fall from 100% to 80%, also subject to a 7.5% cap on steel-related credits.

Manufacturing incentives

The draft legislation would expand the definition of zero-emission vehicles to include cars and vans running exclusively on eligible renewable and low-carbon fuels, giving manufacturers greater flexibility in meeting emissions targets. Small and highly efficient electric vehicles manufactured in the EU would qualify for 'super credits,' allowing them to count more heavily when calculating compliance with emissions standards.

Specifically, EU-made electric cars measuring no more than 4.2 meters would count as 1.4 vehicles, while highly efficient models would count as 1.2. Those multipliers would rise further for vehicles registered under social leasing schemes, the committee noted.

Legislative timeline

The proposed changes still require approval by the full Parliament, with a vote expected during its December plenary session to establish its negotiating position for subsequent talks with EU governments. Existing EU rules currently require a 100% reduction in CO2 emissions from new cars and vans by 2035, effectively ending sales of new conventional petrol and diesel vehicles, though the Commission had previously proposed lowering the 2035 car target to 90%.