Committees in the European Parliament have voted to relax CO2 emission targets for new vehicles. The proposal suggests that by 2035, manufacturers must reduce emissions by 95 per cent compared to 2021 levels, rather than the previously planned 100 per cent.

The draft allows for an additional 7.5 percentage point reduction if manufacturers use climate-friendly steel produced in Europe. Under this provision, the effective savings target could decrease to 87.5 per cent by 2035, potentially allowing for the continued registration of combustion engine and hybrid vehicles.

The Industry Committee approved the proposal with 49 votes in favour, 27 against, and five abstentions. The Transport Committee also passed the measure with 27 votes in favour, 18 against, and one abstention. The Environment Committee is expected to vote in early November.

The European Commission introduced the Auto Package at the end of 2025 to address automotive industry concerns. Their initial proposal suggested a 90 per cent reduction target, equivalent to 11 grams of CO2 per kilometre, without a fixed date for reaching a 100 per cent reduction.