Overview
- The European Commission’s Automotive Package replaces the 100% zero‑emission mandate with a 90% tailpipe reduction target for 2035, allowing a limited share of hybrids and combustion models to continue.
- Automakers could offset the remaining 10% via low‑carbon EU steel (up to 7%) and certified e‑/biofuels (up to 3%), with extra credits for small, EU‑made affordable EVs.
- The package includes a €1.8 billion Battery Booster to strengthen Europe’s cell supply chain and reduce reliance on Chinese battery materials and production.
- Legacy manufacturers and some member states welcomed added flexibility, while EV startups, investors and the ICCT warned the shift risks slowing the transition and muddying market signals; some analysts called the change modest in impact.
- UK analysis indicates the industry is on track to meet the 2025 ZEV mandate, and the government reiterated a 2035 phase‑out of new petrol and diesel cars as domestic debate continues over whether to mirror the EU shift.