European Union negotiators have reached a comprehensive compromise agreement modifying vehicle CO₂ emission performance standards under Regulation (EU) 2019/631, introducing revised fleet-wide reduction targets alongside extended compliance flexibilities for automotive manufacturers.
The initial European Commission proposal sought to adjust the Fit for 55 framework to reflect shifting market adoption rates and technological conditions. The Commission’s text originally proposed lowering the 2030 fleet-wide CO₂ reduction target for light commercial vehicles (vans) from 50 per cent to 40 per cent against the 2021 baseline, while reducing the 2035 zero-emission target from 100 per cent to 90 per cent for both passenger cars and vans.
Following the tabling of 1,036 legislative amendments, European Parliament and Council negotiators structured an overarching compromise package that further adjusts target thresholds and introduces new industry compliance mechanisms.
Key legislative, technical, and regulatory elements of the negotiated compromise include:
- Revised fleet reduction targets: Sets the 2035 CO₂ reduction targets at 87.5 per cent for new passenger cars and 80 per cent for vans, while setting the intermediate 2030 van target at 35 per cent.
- Fuel and material offsets: Establishes credit systems allowing original equipment manufacturers (OEMs) to offset residual emissions using verified alternative fuel credits and low-carbon steel manufactured within the EU.
- Super-credits and multi-year averaging: Grants manufacturers multi-year fleet emissions averaging alongside dedicated super-credits for qualifying zero-emission vehicles assembled within EU Member States.
- E-fuel recognition: Formally classifies vehicles powered exclusively by eligible climate-neutral fuels as zero-emission vehicles starting in 2030.
- Consumer transparency framework: Implements a harmonised EU vehicle labeling structure and centralized product database to standardize fuel economy and emissions disclosures for distributors and buyers.
The compromise package maintains the overarching objective of alignment with the European Climate Law’s 2050 climate neutrality mandate while providing domestic automakers structural flexibility to navigate economic and supply chain constraints.
The finalized text will proceed to formal votes in the European Parliament and the Council of the European Union prior to publication in the Official Journal.
