Overview
- Automakers would target a 90% reduction in average tailpipe CO2 from 2021 levels by 2035, allowing a limited share of plug-in hybrids, other hybrids and combustion models alongside full electric and hydrogen vehicles.
- The remaining 10% of emissions would need to be offset through measures such as EU-made low‑carbon steel as well as e‑fuels and biofuels.
- Interim rules would be eased by allowing 2030 car targets to be averaged across 2030–2032, lowering the 2030 vans target to a 40% cut from 50%, and introducing binding national targets to green corporate fleets.
- Incentives include super credits for small EU‑made electric cars and a Battery Booster program offering €1.5 billion in interest‑free loans to support domestic cell production.
- The shift follows heavy lobbying from industry and countries like Germany and Italy, draws praise from Volkswagen and criticism from Greens and climate groups, and arrives as EV demand cools and Ford records a $19.5 billion EV-related writedown.