EU Transport Committee postpones ‘Auto Package’ vote
The European Parliament is soon set to vote on the EU Commission's 'Auto Package' which aims to weaken fixed CO2 targets for 2035, albeit under strict conditions. However, a vote by the crucial Transport Committee has now been postponed.
Bilder: BMW / Montage: electrive
The vote in the European Parliament’s Transport Committee – a landmark decision for the European automotive industry – was originally scheduled for 5 October. However: citing the office of the responsible MEP Jens Gieseke (CDU) and a spokesperson for the largest parliamentary group, the EPP, _Der Spiegel_ now reports that this date has been postponed by around two weeks. The reason is said to be that parties within the so-called Centre Platform still need time to reach an agreement. As things stand, the plenary vote is planned for November.
For context: at the end of 2025, the European Commission responded to warnings from the automotive industry with its ‘Auto Package’, acknowledging that sticking to the de facto ban on new combustion engine vehicles from 2035 would exacerbate the sector’s crisis. In its proposal, the Commission sets a new fleet CO₂ reduction target of 90% compared to 2021, equivalent to a fleet emission level of 11 grams per kilometre – instead of zero grams. The Commission no longer specifies a date for the 100 per cent target and assumes that this will result in 27 to 29 per cent of new registrations still having an internal combustion engine after 2035.
Importantly: the focus of legislation remains the CO₂ fleet limit value – that is, the average CO₂ emissions in grams per kilometre that newly registered vehicles from a manufacturer in the EU must not exceed on average. If OEMs fail to meet the progressively tightening requirements, they face financial penalties.
A simple majority suffices
The Commission presented its ‘Auto Package’ at the end of 2025. To pass the package, however, both the EU Parliament (where the EPP is the largest group) and the EU Council (representing member states) must give their approval. In the EU Parliament, a simple majority is sufficient, while in the EU Council, a so-called ‘qualified majority’ is required. This means the support of at least 15 countries representing at least 65 per cent of the EU population.
During the consultation process, various interest groups are likely to attempt to amend the draft in their favour. Against this backdrop, the Commission is said to have deliberately designed the ‘Auto Package’ broadly from the outset to offer something to as many countries as possible. In addition to Germany, six other EU countries (all with a relatively low share of electric vehicles in their new registrations) have pushed for a weakening of CO₂ targets and in favour of internal combustion engines. Other countries, such as Spain, France, Denmark and Belgium, are pursuing a significantly more ambitious electrification agenda.
Let us revisit the ‘Auto Package’ in its fundamental form as presented at the end of 2025. The Commission’s approach is to slightly relax the CO₂ targets as described above, thereby allowing not only the sale of plug-in hybrids and range-extender vehicles after 2035 but also mild hybrids and pure ICE vehicles. However, there is a major caveat: the Commission ties this relaxation to specific conditions.
Firstly, according to the Commission’s intentions, the CO₂ emissions still caused by new ICE vehicles after 2035 must be compensated for. A credit system is planned, under which manufacturers must offset the ICE vehicles, plug-in hybrids and range extenders they sell after 2035 – for example, by using green steel from the European Union in their cars or climate-neutral fuels such as biofuels or the controversial e-fuels. Up to 3 per cent of the 2021 reference target (or, in other words, 30 per cent of the still-permitted emissions) can be accounted for via clean fuels, while for green steel, it is 7 per cent of the reference target or 70 per cent of the still-permitted emissions.
However, it remains unclear how strict these requirements will be in practice. Whether an automaker will actually be able to use green steel in its cars and power them with e-fuels by 2035 depends heavily on the availability and cost of green steel and these clean fuels in 2035 – and, consequently, who will be able to afford such vehicles after 2035.
Preferential treatment for small electric cars
Other points are more concrete: so-called ‘Super Credits’ are intended to promote small and affordable electric cars in particular. Electric cars shorter than 4.20 metres will therefore be given greater weight in the calculation of a manufacturer’s fleet emissions. In practical terms: a sold ID. Polo would count not as one vehicle but as 1.3 vehicles in Volkswagen’s fleet emissions calculation. “This will create incentives for the market introduction of more small electric vehicle models,” the Commission announced in December. This proposal is said to have originated from Spain and France. Both countries had already spoken out in autumn in favour of retaining the 2035 CO₂ target with only a little additional flexibility and prefer to promote electric cars through measures such as Super Credits.
As with the CO₂ regulation from 2025, the path to the adjusted 2035 target is also being made more flexible. Specifically, this concerns the previously fixed interim target for 2030, which, analogous to the current regulation from 2025 to 2027, is likely to be extended. Instead of meeting fixed annual targets, manufacturers must achieve the interim targets over the period from 2030 to 2032 – if they are still above the target in 2030, this would not immediately result in financial penalties. There is also the possibility of offsetting the target shortfall through greater savings in subsequent years. Additionally, “additional flexibility is granted for the transporter segment, where the acceptance of electric vehicles has been structurally more difficult, with the CO₂ target for 2030 being reduced from 50 to 40 per cent,” states the Commission.
Another new development is that, from 2030, the EU Commission intends to impose specific requirements on member states for the electrification of company cars – with different requirements for each country. Brussels will leave it up to the member states to decide how they implement these requirements. However, Belgium’s successful company car taxation system, which has led to a sharp increase in electric vehicle sales there, is seen as a model.
New CO₂ regulations for electric trucks
Additionally, the EU Commission plans to allocate €1.5 billion for a ‘Battery Booster’ to accelerate the creation of a “fully EU-manufactured battery value chain”. A corresponding funding call went live in July. Plans include interest-free loans for cell manufacturers and supportive political measures. Furthermore, the bureaucratic requirements are to be adjusted – not only in the battery sector but for the entire automotive industry. This is intended to reduce the administrative burden on companies, with the Commission estimating potential savings of €706 million per year.
The Commission also proposes a targeted amendment to the CO₂ emission standards for heavy-duty vehicles, which would make compliance with the 2030 targets more flexible – though no specific figures have been provided yet. “The targeted amendment would allow manufacturers to accumulate more emission credits in the years leading up to 2030 than under the current regulation. While the current regulation only allows manufacturers to receive credits if their CO₂ emissions are below a linear CO₂ emission reduction path, the proposal would enable them to generate credits as soon as their CO₂ emissions are below their annual CO₂ emission target,” the Commission states in its draft.
“The future is electric”
The background to all these adjustments and regulations is clear: the European automotive industry is not only facing a major technological transformation but also intense competition “of unprecedented speed and scale”. As the EU notes: “It is therefore extremely important to ensure the competitiveness of the industry and support it in the transition to clean mobility and the decarbonisation of road transport.” The EU’s strategic dialogue with the automotive industry last year gave companies the opportunity to clearly communicate their positions and needs in Brussels. The Commission has therefore brought forward the agreed review of the regulations by one year and is meeting the industry with a little more flexibility. However, it is only deviating slightly from its previous course.
The Commission also refers to the package of measures as “the first industrial strategy for the automotive industry”. “It ensures climate, industry and economic coherence. It includes elements and prerequisites for a future-proof, clean and competitive automotive industry and encourages manufacturers to continue investing in zero-emission vehicles,” states a Q&A on the ‘Auto Package’. “It offers more flexibility and technological neutrality in the CO₂ standards for passenger cars and light commercial vehicles, and targeted flexibility for heavy-duty vehicles to achieve our climate goals, and supports the introduction of zero-emission and low-emission vehicles in corporate fleets. The future is electric.”
