Overview
- Negotiators from the European Parliament’s centre groups reached a provisional deal overnight to Tuesday that sets a default 95% fleet CO₂ cut by 2035 with a conditional floor of 87.5% if manufacturers use certified low‑carbon (‘green’) steel.
- The compromise reflects a deutsch‑français push led by Chancellor Friedrich Merz and President Emmanuel Macron that pairs looser exhaust limits with stricter 'Made in EU' sourcing rules intended to protect factories and supply‑chain jobs.
- The draft is not final: the three centre factions must ratify it internally, the transport and industry committees will vote later this week, the environment committee is due to vote in early November, and the plenary is expected to fix a position in December.
- If the lower targets hold, automakers could continue selling new combustion and hybrid models after 2035 without facing the large fines tied to a full zero‑emissions goal, which reduces regulatory pressure to shift fleets to battery electric vehicles.
- The proposal has drawn sharp criticism from environmental groups and several member states that warn it would weaken Europe’s climate path, while supporters argue it balances decarbonisation with industrial competitiveness; the Council’s majority remains uncertain.