The European Commission takes a step back on the total ban on the sale of new cars with petrol and diesel engines from 2035. The emissions reduction target goes from 100% to 90%, while maintaining climate neutrality thanks to a compensation mechanism through the purchase of credits for the remaining 10%.
Technological neutrality and new fuels
The revision leaves more room for technological neutrality, as requested by several Member States and manufacturers. In this context, biofuels and e-fuels take on a more relevant role, becoming key tools of the transition alongside electricity and hydrogen.
A package for supply and demand
The Commission has presented a package that intervenes on both the supply and demand sides. On the supply side, a review of CO₂ emissions standards for cars and vans is proposed, as well as a targeted amendment for heavy-duty vehicles (HDVs). On the demand side, however, an initiative is planned to decarbonise company fleets, with binding national objectives for zero and low emission vehicles.
New CO₂ targets from 2035
From 2035, manufacturers will have to comply with a 90% reduction in exhaust emissions. The remaining 10% can be offset through the use of low-emission steel produced in the Union or with e-fuels and biofuels. This will allow various technologies – plug-in hybrids, range extenders, mild hybrids and internal combustion engines – to continue to be present on the market, alongside electric and hydrogen vehicles.
Response to the European automotive crisis
The plan was created to address the crisis that is affecting the European automotive industry, particularly in Germany, where historic production sites have been closed. «Last March we said that the automotive industry was at risk of extinction in Europe», recalled the Vice President of the European Commission Stephane Sejournè, presenting the package. “We are now implementing support measures,” he added, clarifying that this is not a retreat from climate objectives.
Super credits and affordable small electric cars
Before 2035, manufacturers will be able to benefit from “super credits” for affordable small electric cars produced in the EU. Thus a new market segment is born, with vehicles up to 4.20 meters long and prices between 15 and 20 thousand euros. On the demand front, states will have to guarantee top-ups at reduced costs, subsidized parking and reduction or exemption from tolls.
Greater flexibility towards 2030
For the 2030 objective on cars and vans, the “banking & borrowing” mechanism is introduced for the period 2030-2032, which reduces the rigidity of the rules while maintaining the pressure towards decarbonisation. For vans, a sector in which electrification is more complex, the emissions reduction target is lowered from 50% to 40% by 2030.
Heavy vehicles and company fleets
The Commission is also proposing a targeted amendment to the CO₂ standards for heavy-duty vehicles, introducing more flexibility for achieving the 2030 targets. For corporate fleets, the targets will be set at national level and will only apply to companies with more than 200 employees and a turnover of more than €50 million, excluding SMEs. Zero or low emission and “Made in the EU” vehicles will also become a prerequisite for accessing public support.
Investments in batteries: the Battery Booster is born
To support the transition, the EU will invest €1.8 billion in the Battery Booster, intended to strengthen a fully European battery value chain. Of this, 1.5 billion will be interest-free loans for cell manufacturers. The aim is to reduce dependence on large global players and make European production more resilient. Simplification and cost reduction With the Automotive Omnibus, the Commission aims to reduce administrative burdens and costs for manufacturers. According to estimates, businesses will save around 706 million euros per year, contributing to a total of 14.3 billion in annual savings thanks to simplification initiatives. Among the measures envisaged, the reduction of secondary legislative acts and the simplification of tests for new vans and trucks.
Transport and rules for electric vans
The launch of electric vans in domestic transport will be facilitated by rules that equate them to internal combustion vehicles with regard to driver rest times and operational regulation, thus reducing barriers to diffusion. An evolving balance “This package represents the balance of the moment”, explained Sejournè, implying that further adjustments will be possible based on the evolution of the geopolitical and industrial scenario. A concept also reiterated by Climate Commissioner Wopke Hoekstra: «Technology evolves rapidly and the battle is played on electric».
Estimates of the post-2035 car fleet
According to Transport Commissioner Apostolos Tzitzikostas, thanks to the 10% reduction in the 2035 targets, a significant share of non-electric cars will still circulate on European roads, estimated at between 30 and 35%. A figure that photographs a more gradual transition, but no less ambitious in terms of climate.