Overview
- The Commission’s proposal swaps the 100% zero‑emission sales requirement for a 90% tailpipe CO2 reduction from 2035, with the remaining 10% covered by offsets such as EU low‑carbon steel (up to 7%) and verified e‑fuels or biofuels (up to 3%), plus extra credits for small EU‑made EVs.
- The plan remains a proposal and requires approval by the European Parliament before it can take effect.
- Legacy automakers and industry groups sought flexibility and some welcomed the shift, though several companies now warn the offset rules and EU‑content requirements could be complex and costly.
- EV startups, investors and Volvo caution that weakening the 2035 goal blurs investment signals for charging and electrification, while an open letter from Take Charge Europe urged the Commission to keep the original target.
- Analysts say the change is modest and expect most new‑car buyers in 2035 to be in EVs, with any remaining ICE models likely niche and pricey; the package also includes a proposed €1.8 billion Battery Booster to build EU cell capacity as Chinese suppliers dominate the supply chain.