Overview
- Brussels set a 90% fleet‑average CO2 reduction by 2035 versus 2021, replacing the de facto 100% cut and permitting hybrids, range extenders and some combustion models if averages are met.
- CO2 savings from EU‑made green steel and from bio or synthetic fuels would count as offsets, with reports indicating a possible 70% steel and 30% fuels split still under discussion.
- The package pairs the rule change with battery‑industry support, a super‑bonus for small European‑built EVs, and cleaner‑fleet targets for corporate and rental vehicles.
- A softened 2030 trajectory would let manufacturers carry over credits for two years to close shortfalls, though penalties would still apply for missed targets.
- Reaction is sharply divided, with the EPP and Germany’s Friedrich Merz praising the shift, environmental groups warning of climate and competitiveness risks, and a poll finding 63% of Germans favor loosening the ban.