BRUSSELS: European Parliament lawmakers have backed easing the European Union’s planned 2035 carbon emissions target for new cars, proposing to reduce the required fleet-wide emissions cut from 100% to 87.5% and introduce incentives for vehicles using renewable fuels and European-made low-carbon steel.
The European Parliament’s Environment Committee adopted its negotiating position on Wednesday with 48 votes in favour, 30 against and two abstentions, proposing changes to the European Commission’s plans for reducing emissions from new cars and vans.
The proposals form part of a broader EU effort to support the competitiveness of Europe’s automotive industry while continuing its transition towards cleaner transport.
Under the committee’s position, car manufacturers would be allowed to retain a limited share of emissions, subject to compensation mechanisms involving credits for low-carbon steel produced in the European Union.
The proposed 2035 target for passenger cars would be reduced from a 100% emissions cut to 87.5%, with manufacturers able to use low-carbon steel credits to compensate for emissions within a capped allowance of 7.5%, measured against the 2021 EU fleet-wide reference target.
For vans, lawmakers proposed lowering the 2030 emissions reduction target to 35%, compared with 40% in the European Commission’s proposal and 50% under existing rules.
The 2035 target for vans would be reduced from 100% to 80%, with the possibility of using low-carbon steel credits subject to a 7.5% cap.
Between the entry into force of the revised rules and the end of 2034, low-carbon steel credits would be limited to a maximum contribution of 3% towards meeting specific emissions targets for both cars and vans.
The committee also wants to recognise vehicles running exclusively on eligible renewable and low-carbon fuels as zero-emission vehicles, provided they meet specified criteria.
The move would broaden the definition of zero-emission vehicles beyond those with no carbon dioxide emissions from their tailpipes.
Incentives for European-made electric vehicles
Lawmakers have also proposed additional incentives for smaller and more energy-efficient electric vehicles manufactured in the EU.
Under the proposed system, electric cars measuring no more than 4.2 metres in length and produced in the bloc would count as 1.4 vehicles when calculating a manufacturer’s average specific CO2 emissions.
Highly efficient electric cars made in the EU would receive a multiplier of 1.2, provided they meet strict energy-consumption thresholds.
For vehicles registered under social leasing schemes, the multipliers would increase to 1.5 for small electric cars and 1.3 for highly efficient models.
Electric vans manufactured in the EU would count as 1.2 vehicles until the end of 2034 and 1.4 vehicles from 2035.
The proposed incentives are intended to encourage manufacturers to expand production of smaller and more energy-efficient electric vehicles within Europe.
Massimiliano Salini, the committee’s rapporteur and a member of the centre-right European People’s Party from Italy, said the agreement represented a turning point for the European automotive industry.
“Our agreement marks a turning point for the European automotive industry,” Salini said, adding that registering combustion-engine cars without compensation obligations would remain possible under the proposed framework.
“Decarbonisation does not mean imposing one technology,” he said, arguing that vehicles powered exclusively by qualifying renewable fuels should also be recognised alongside electric vehicles.
Salini said the proposed use of European low-carbon steel would reward domestic production and strengthen the bloc’s strategic autonomy.
Next steps
The Environment Committee’s position is not yet the final legislation. The European Parliament’s mandate for negotiations with EU governments is expected to be put to a vote during its December 2026 plenary session.
The European Commission presented its proposal in December 2025 following a strategic dialogue involving automotive industry leaders, social partners and other stakeholders.
The proposed revision seeks to address mounting challenges facing Europe’s car industry while maintaining the bloc’s longer-term climate objectives
