European Union lawmakers have agreed on a position that would soften proposed 2035 emissions targets for new cars, according to a Reuters report. The agreement would let automakers make up part of the expected reduction through the use of low-carbon steel made in the European Union. It changes the policy pathway for carmakers, but does not remove the wider pressure to reduce fleet emissions and develop lower-carbon vehicles, including electric cars. The shift could affect investment signals across the region and the pace of fleet renewal.
The European Commission had proposed a 90% cut in car carbon-dioxide emissions from 2021 levels by 2035, with the remaining 10% potentially offset through low-carbon steel and alternative fuels. The agreement among three mainstream European Parliament groups instead sets an 87.5% reduction target for cars, with a 7.5% top-up linked to production using low-carbon EU steel. The position still requires further approval and negotiations. Until the legislative process is complete, automakers must plan against a framework that can still change.
For vans, the parliamentary groups agreed to an 80% emissions reduction by 2035. The proposed 2030 targets would be a 55% cut for cars and 35% for vans, with the carmakers allowed to average performance over 2029 to 2031. Reuters also reported that renewable-fuel cars could be recognized as zero-emission vehicles and that small affordable EVs could earn super-credits for their manufacturers. The incentives could influence which models companies prioritize as they balance compliance, affordability and customer demand. The outcome could influence product planning and supplier investment.
The compromise illustrates the tension between climate goals and the economic pressures facing Europe’s automotive industry. France and Germany have pushed for less demanding rules as manufacturers compete globally and manage the cost of electrification. For EV makers and suppliers, the policy may change the pace and mix of compliance, but it does not eliminate the need for competitive electric models, charging infrastructure and lower-carbon production across the vehicle lifecycle. It also keeps pressure on manufacturers to improve efficiency, charging access and the economics of ownership.
