Combustion engine off: EU Parliament finds compromise on CO₂ targets

The democratic center in the European Parliament has reached a compromise on how the ban on combustion engines in the EU should be relaxed. This seems to pave the way for the European institutions to agree on a reform of the CO₂ limits for new cars.

According to SPIEGEL information, negotiators from the conservative EPP, the social democratic S&D and the liberal Renew Europe group agreed on a corresponding solution on Tuesday night. Accordingly, CO₂ emissions from new cars in the EU should “only” decrease by 87.5 percent by 2035 compared to the starting year of 2021. This would mean that the sale of new combustion engines and hybrid cars would remain permitted even after 2035, without manufacturers facing billions in fines.

At the same time, the automotive industry should be given a strong incentive to use climate-friendly steel. According to the plans, emissions should be reduced by 95 percent. However, if manufacturers use green steel, they can reduce the price by a further 7.5 percentage points.

The compromise is not yet official. The three factions that together form the so-called center platform in the European Parliament still have to deal with the outcome of the night's negotiations.

The Transport Committee and the Industry Committee of the EU Parliament are due to vote on their opinion on the reform this Thursday, with the lead Environment Committee following at the beginning of November. The plenary session of the EU Parliament is now expected to decide on its position in December.

Last week, Chancellor Friedrich Merz (CDU) and French President Emmanuel Macron agreed on a common position on the end of combustion engines. Their compromise is considered groundbreaking for the vote in the Council of EU Member States.

As soon as the Council and Parliament have each adopted their positions by a majority, the institutions' negotiators can negotiate a final compromise at the beginning of next year.