Auto Package: EU Committees Vote to Relax CO2 Rules
In the European Parliament, the first committees have voted on the auto package. These votes are seen as indicators of whether and to what extent the so-called phase-out of internal combustion engines in the EU will be eased. The result: The majority in the Industry and Transport Committee supports relaxing CO2 regulations, a decision previously agreed upon internally by the so-called Center Platform.
Images: BMW / Editing: electrive
A decision on the automotive package is emerging in the European Parliament, which would loosen the de facto ban on new internal combustion engines in the EU set for 2035. The three factions of the so-called Center Platform reached an agreement last week. The first committee votes on Thursday, October 22, represent the first tangible outcome of this internal consensus-building, following frequent leaks regarding the still-internal negotiation positions.
Specifically, on Thursday the Industry and Transport Committees voted in separate sessions to approve a proposal drafted by negotiators from the conservative EVP, the social democratic S&D, and the liberal Renew Europe group after intense negotiations. Regarding CO2 fleet targets, this draft proposes that manufacturers must reduce the CO2 emissions of their new cars by only 95 percent by 2035 instead of 100 percent (compared to 2021), though they may reduce emissions by an additional 7.5 percentage points if they use climate-friendly steel produced in Europe as a compensation in their vehicles. In such cases, the reduction target could drop to 87.5 percent by 2035 according to this draft. Thus, per the wishes of these three groups, there will still be room for further registrations of internal combustion engine and hybrid vehicles after 2035.
Mitte-Plattform shows unity
According to the “Handelsblatt,” all MEPs from the EVP, S&D, and Renew groups voted in favor of this proposal in the Industry Committee. The right-wing European Conservatives and Reformists (EKR) group, the far-right Europe of Sovereign Nations (ESN) party family, the ultra-right Patriots for Europe (PfE) alliance, the Left party, and the Greens/EFA voted against it. The final voting result was 49 votes in favor, 27 against, with five abstentions. A similar pattern emerged in the smaller Transport Committee. According to the minutes, there were 27 votes in favor, 18 against, and one abstention here.
Next, the Environment Committee is set to vote on this matter at the beginning of November, per reports from the “Spiegel,” with the plenary session likely following in December.
To provide context: The EU Commission acted on the warnings from the automotive industry at the end of 2025 with its “Auto Package,” which stated that sticking to a de facto ban on new internal combustion engine vehicles by 2035 would exacerbate the industry’s crisis. This move was also made under pressure from Germany. The Commission’s proposal set a new CO2 fleet target of a 90 percent reduction compared to 2021, equivalent to an CO2 emissions level of 11 grams per kilometer — rather than zero grams. The Commission did not specify a date for achieving the 100 percent target in its draft.
Important: Brussels insists in its draft that the remaining 10 percent be fully compensated through the use of green steel and climate-friendly fuels. While the Middle Platform compromise also mentions green steel as a compensation measure, it does not go so far as to demand full compensation up to the 100 percent mark.
As is well known, Federal Chancellor Friedrich Merz and French President Emmanuel Macron recently agreed on a common position regarding the phase-out of internal combustion engines. That agreement calls for a 90% reduction in CO2 emissions by 2035 — without any compensation. According to “Spiegel,” this compromise between Germany and France is considered “pivotal for the voting in the EU Member States’ Council.” The Council must vote after the Parliament, and changes are always possible during this legislative process.
Voting in the European Parliament and Council is Approaching
We recall that as early as the beginning of October, the European Parliament’s Transport Committee postponed its vote on the “Auto Package” by two and a half weeks. This vote was originally scheduled for October 5th. The reason given at that time was that the Center Party platform needed more time to reach an agreement.
To pass the package, the EU Parliament must approve it soon (where the EPP is the largest faction), followed by the member states in the EU Council. A simple majority is sufficient in the EU Parliament, but a so-called “qualified majority” is required in the EU Council. This means approval from at least 15 countries that together account for at least 65 percent of the EU’s population is needed.
During the consultation process, various interest groups are likely to try to modify the draft in their favor. Against this backdrop, the “auto package” was intended from the start to be broad in scope by the commission, so as to offer something to as many countries as possible. As is well known, in addition to Germany, six other EU countries (all with a relatively low share of electric vehicles among their new registrations) advocated for weakening the CO2 targets and supporting internal combustion engines. However, France, which has previously been opposed to this policy, seems to have changed sides. But not without demanding concessions elsewhere: reportedly, France will now receive support from Germany in exchange for complying with the so-called “Buy European” requirements.