Overview
- Representatives of the European People's Party, S&D and Renew agreed on Tuesday to downgrade the Commission's country-specific, binding quotas for large corporate fleets into non‑punitive aspirational targets.
- The deal removes automatic penalties for missed fleet goals so member states would not face defined fines if they fail to meet the new voluntary targets.
- The centrist compromise also relaxes the 2035 new-car CO2 ambition to an effective 87.5 percent cut if manufacturers offset 7.5 percentage points by using climate-friendly European steel.
- Large commercial fleets make up a major share of EU new-car registrations, so turning quotas into voluntary goals and allowing offsets could slow the pace of fleet electrification and ease costs for fleet operators.
- Next steps are an environment committee vote expected in early November, a likely Parliament plenary vote in December, and then trilogue negotiations with the Council and Commission that will determine the final law and its real-world impact.