Cars, the 2035 taboo falls: the EU opens up to thermal engines

The European Union takes another step towards overcoming the ban on the sale of new cars with combustion engines from 2035. The Environment Committee of the European Parliament has approved (4 November) a proposal that scales back the CO2 emission reduction targets for cars and vans, introduces incentives for electric vehicles produced in the EU and recognizes a role for renewable and low-emission fuels.

The text, approved with 48 votes in favour, 30 against and two abstentions, modifies one of the pillars of the European strategy for the decarbonisation of transport. Current legislation requires that from 2035 the average CO2 emissions of new cars and vans be reduced by 100% compared to the 2021 reference levels. MEPs instead propose lowering the target to 87.5% for cars, providing for a compensation mechanism through credits linked to the use of low-emission steel produced in the Union.

The system would allow manufacturers to offset up to 7.5 percentage points of emissions compared to the reference value, thus reaching an overall target of 95%. For light commercial vehicles, however, the reduction required in 2035 would drop to 80%, compared to the 100% envisaged by the current rules.

The revision would also concern the intermediate stage of 2030: for vans, the emissions cut would go from the 50% currently expected to 35%, a threshold even lower than the 40% proposed by the European Commission.

One of the most significant innovations concerns the definition of a zero-emission vehicle. The parliamentary commission proposes to include, alongside vehicles with no exhaust CO2 emissions, also those powered exclusively by renewable and low-emission fuels that comply with certain requirements. A modification that would open up new perspectives for some internal combustion engines, without limiting their future to electric traction alone.

The measure also introduces a system of supercredits to support the European production of electric vehicles. Electric cars up to 4.2 meters long and manufactured in the EU would count as 1.4 vehicles in the calculation of manufacturers' average emissions. For particularly efficient models the multiplier would be equal to 1.2. Further benefits would be provided for vehicles registered through social leasing programmes.

“Our agreement marks a turning point for the European automotive industry,” said rapporteur Massimiliano Salini (EPP), underlining that decarbonisation must not translate into the imposition of a single technology. According to the MEP, the recognition of renewable fuels and low-emission European steel will help protect the industrial supply chain and strengthen the strategic autonomy of the Union.

The proposal is part of the broader automotive competitiveness package presented by the European Commission in December 2025, after the strategic dialogue with manufacturers, businesses and social partners.

The review is not yet final. The European Parliament's negotiating mandate should be voted on in the plenary session in December 2026. Only after discussion with the governments of the member states can the new rules be defined.