EU CO2 rules: Parliament committees back softer emission targets for cars and vans
European Parliament committees have backed a proposal to further relax CO2 emission targets for cars and light commercial vehicles, potentially allowing combustion-engine models to remain on the market beyond 2035. The proposed changes would also significantly ease emissions requirements for vans, although the legislative process is far from complete.
The European Parliament’s Industry (ITRE) and Transport (TRAN) committees have voted in favour of a compromise proposal to relax the EU’s CO2 emission standards for new cars and light commercial vehicles. The votes, held on 22 October, represent an important step in the negotiations surrounding the European Commission’s Automotive Package, presented in December 2025.
According to Electrive, the compromise was negotiated by the European People’s Party (EPP), the Socialists and Democrats (S&D), and Renew Europe. In the Industry Committee, it received 49 votes in favour, 27 against and five abstentions, while the Transport Committee voted 27 to 18, with one abstention.
What could change for cars and light commercial vehicles?
Under the current EU legislation, manufacturers must achieve a 100% reduction in fleet-average tailpipe CO2 emissions from new cars and vans by 2035, compared with the relevant baseline.
The European Commission had already proposed reducing this requirement to 90%, with the remaining emissions to be compensated through mechanisms involving low-carbon steel and sustainable fuels.
The parliamentary compromise goes further for passenger cars, proposing a 95% reduction target by 2035, with 7.5 percentage points potentially covered through the use of low-carbon steel produced in Europe. This could effectively lower the required tailpipe reduction to 87.5%, leaving some room for combustion-engine and hybrid vehicles beyond 2035.
For the commercial vehicle sector, the proposed changes are particularly significant. According to the International Road Transport Union (IRU), the two committees support reducing the CO2 emissions target for vans to 35% by 2030 and 80% by 2035. These figures compare with the Commission’s proposed reductions of 40% and 90%, respectively, and the existing legislative targets of 50% and 100%.
The committees also support assessing manufacturers’ compliance over a five-year period, rather than the three-year averaging mechanism proposed by the Commission, and introducing a separate category for vehicles powered exclusively by sustainable fuels.
The next steps in the European legislative process
The committee opinions are not binding and do not change the legislation currently in force. The European Parliament’s Environment Committee (ENVI), which is responsible for the dossier, is expected to vote in early November, with a plenary vote potentially following in December.
The proposed amendments would subsequently need to be agreed with EU Member States through the legislative process.
The IRU has welcomed the direction taken by the committees, arguing that more realistic targets for vans should be accompanied by improvements in charging infrastructure, grid capacity and the economic conditions facing transport operators.
Although heavy-duty trucks are governed by a separate CO2 regulatory framework, the debate could have broader implications for the commercial vehicle industry. The IRU has called for a similar approach to technological flexibility to be considered during the scheduled 2027 review of heavy-duty vehicle CO2 standards.
