The European Union's Environment Committee has voted to lower the 2035 CO2 reduction target for passenger cars to 87.5%, down from 100%, opening the way for more combustion-engined models to stay on sale after 2035. The vote took place on 4 November.
What the committee approved
The 87.5% figure is a reduction against the 2021 baseline, and it gives car makers room to sell more combustion-engine models than the original 100% target allowed. The committee also voted in favour of classing "vehicles running exclusively on eligible fuels" (VEEFs), including biofuels, as zero-emission.
Under the changes, manufacturers would have to offset up to 7.5% of their emissions using credits for EU-made low-carbon steel. A projection by the green lobby group T&E estimates car makers could fill half their sales with extended-range EVs without breaching the new rules in 2035.
Super-credits and the unanswered efficiency question
Companies building small EVs up to 4.2 metres long in the EU would qualify for super-credits under which each car sold counts as 1.4 EVs, letting them sell more combustion models. Ultra-efficient EVs above that size would collect credits worth 1.2 sales, again only if made in the EU.
The committee did not announce the efficiency threshold a model must clear to earn the 1.2 credit. Autocar notes it would likely focus on cars achieving above 4.0 miles per kWh, or 15kWh/100km, but that figure has not been confirmed.
The UK is currently negotiating for models built there to qualify under the scheme.
Vans and the wider package
Other concessions voted through include cutting van CO2 by 35% in 2030, against 40% in the original proposal and 50% under existing rules. The 2035 van target would fall from 100% to 80%.
The changes sit inside a wider package aimed at strengthening automotive manufacturing in Europe as it faces cheaper electrified models from more agile Chinese competitors. That package includes accelerating an EU-made battery value chain and reducing legislative burdens.
Industry reaction
ACEA, the body representing car makers, gave the vote a cautious welcome and acknowledged the "pragmatic" approach and extra flexibility. It said more was needed, arguing that for passenger cars the measures remain "too limited in scope and duration to adequately address the industry's concerns". Toyota called it a "welcome step" while also asking for more flexibility.
European car makers have been lobbying for more post-2035 combustion sales because batteries remain costly to bring down, and ICE models are more profitable, even as EV sales have soared across Europe this year on higher petrol and diesel prices.
The softer targets change the maths for buyers: combustion and extended-range models stay viable in showrooms for longer, while the super-credit structure rewards makers who build small or highly efficient EVs inside the EU. Whether the UK's production base is folded into that structure is still being negotiated.

