Auto 2035: European Parliament further relaxes CO2 standards. Motus-E protests
The European Parliament’s Environment Committee has approved the revision of CO2 standards for cars and vans. The target for reducing tailpipe emissions by 2035 has been lowered from 100% to 87.5%, allowing room for internal combustion engines as well. Approval was also given to mini electric vehicles made in Europe and to new targets for electrifying corporate fleets. Motus-E said, “It’s not enough to discuss targets; industrial conditions are needed to achieve them.”
With 48 votes in favor, 30 against, and 2 abstentions, the European Parliament Committee approved a new proposal to revise CO2 emission standards for cars and light commercial vehicles. This compromise further relaxes the requirements compared to the Commission’s original proposal but only partially implements the Franco-German agreement reached by Macron and Merz under pressure from their respective automakers.
In recent weeks, the European People’s Party (EPP), Socialists and Democrats (S&D), and the liberals of Renew also endorsed the agreement to introduce greater flexibility by lowering some of the targets set for 2030 and 2035.
5% for Conventional Cars Will Remain
The most significant change relates to 2035. The target for new cars would no longer be 100%, but 87.5%. This adjustment allows manufacturers a 12.5% margin of flexibility, which can be utilized through credits related to the use of low-carbon steel, up to a maximum of 7.5%.
As a result, a 5% portion of emissions would remain uncompensated, enabling the registration of internal combustion engine vehicles even after 2035.
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The position of the European Parliament, signed by rapporteur Massimiliano Salini (Forza Italia, PPE), must still be confirmed by the plenary in December. It is not yet a final decision; discussions will continue with member states and other European institutions as well.
Vans: less ambitious targets for 2030 and 2035
The revision also applies to light commercial vehicles, for which the compromise calls for a relaxation of the emission reduction targets.
By 2030, the proposed target would drop from 50% as set by current regulations to 35%. A significant revision is also planned for 2035, with the target changing from 100% to 80%. To achieve this, manufacturers could use credits related to the use of low-carbon steel, up to a maximum limit of 7.5%.
These changes respond to the demands of some in Europe’s automotive industry, which is concerned about the costs of transition, international competition, and the difficulty of accelerating the electrification of commercial vehicles.
The Environment Committee’s vote is part of a broader package of measures for the automotive sector. MEPs also approved the regulatory simplification proposal known as Automotive Omnibus, with 105 votes in favor, 39 against, and 21 abstentions.
European-made electric mini-cars and corporate fleets
One of the most interesting measures is the introduction of a new category of small electric vehicles, namely European-made mini electric cars. These are vehicles with a maximum length of 4.2 meters, produced within the European Union, for which targeted incentive schemes and a super-credit mechanism linked to new CO2 standards are proposed.
The goal is to promote the spread of more affordable electric vehicles while supporting European industrial production in a market segment where Chinese manufacturers are gaining ground.
Another chapter deals with the electrification of corporate fleets. The Environment and Transport Committees approved the European Parliament’s position on the proposal targeting large companies, defined as those with more than 250 employees and annual revenues exceeding 50 million euros, by 89 votes in favor, 29 against, and 4 abstentions.
The proposal sets national targets for the proportion of zero- and low-emission vehicles in corporate fleets, to be achieved by 2030 and 2035. The specified percentages range from 67% to 95%.
National governments would be given the freedom to choose the most suitable tools to achieve these goals through support and incentive measures. Options include more favorable highway tolls for electric vehicles and the expansion of charging infrastructure. These two issues will also be put to a vote by the plenary in December.
Motus-E rejects the new targets: «This way we lose the competitiveness race»
The revision of CO2 standards faces criticism from Motus-E: “It’s good that a high final target for vehicle electrification is maintained, as it confirms the direction the European Union will take by 2035. But continuing to discuss emission targets without establishing the industrial conditions needed to achieve them risks causing Europe to lose its most important challenge: competitiveness,” commented Fabio Pressi, president of Motus-E.
According to Pressi, the debate over new flexibilities risks further slowing down technological innovation in Europe’s automotive industry at a time when acceleration is needed instead, to reduce dependence on oil imports, protect the European economy from energy shocks, and counter Chinese competition.
The Eternal Return of Alternative Fuels
One of the elements that raises the most concerns among the association is the introduction of the new VEEF category—vehicles powered by renewable fuels and considered zero-emission. “It represents a regulatory uncertainty for an industry that needs clear policy guidance to invest strategically,” notes Pressi. The president of Motus-E also calls for careful evaluation of the actual environmental performance of these vehicles.
Low-emission renewable fuels, he emphasizes, can only be produced in limited quantities, so it would be more appropriate to reserve them for sectors that are difficult to electrify, such as air and maritime transport.
“The market tells us that the transition is already underway.”
Motus-E also takes into account signals from the market. According to Pressi, “It’s time for Europe to recognize a transformation that is already underway, as evidenced by the growing market share of fully electric vehicles, which by September reached an average of 30%,” says the president. However, investments, capital, and an industrial strategy capable of closing the gap with international competitors, starting with China, are needed.
Anfia, on the other hand, welcomes positively the compromise approved by the Environment Committee, seeing it as a step toward greater technological openness and a more realistic approach to the transition. But it’s not enough: the association of Italian automakers wants to eliminate even the last remaining concession for Europe’s environmental goals, namely the 7.5% offset through low-carbon steel.
In short: everyone wants to preserve the competitiveness of Europe’s automotive industry. But there is conflict between those who think it should be done by defending existing models and those who advocate for vehicles of the future.
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