EU Auto Package: Parliament Committees Vote to Relax the 2035 CO2 Target for Cars
Two committees of the European Parliament voted on 22 October 2026 to soften the EU's 2035 CO2 rule for new cars. Instead of a 100 % cut in fleet emissions compared with 2021, carmakers would need a 95 % cut, and they could earn up to 7.5 percentage points more through European low-carbon steel.
Key takeaways
- The Industry (ITRE) and Transport (TRAN) committees backed the compromise on 22 October 2026.
- The 2035 target would be a 95 % CO2 cut instead of 100 %, or effectively 87.5 % with full green steel credits.
- New combustion and hybrid cars could still be registered after 2035.
- The Environment committee, the full Parliament and the member states still have to vote.
What the committees voted for
The compromise was drafted by negotiators from the three centrist groups: the European People's Party (EPP), the Socialists and Democrats (S&D) and Renew Europe. According to Handelsblatt, all EPP, S&D and Renew members of the Industry committee voted in favour. The ECR, Europe of Sovereign Nations, Patriots for Europe, The Left and the Greens voted against.
| Parameter | Value |
|---|---|
| Date of vote | 22 October 2026 |
| Industry committee (ITRE) | 49 for, 27 against, 5 abstentions |
| Transport committee (TRAN) | 27 for, 18 against, 1 abstention |
| 2035 fleet CO2 cut vs 2021 | 95 % (current law: 100 %) |
| Green steel credit | Up to 7.5 percentage points |
| Lowest effective target | 87.5 % cut |
The green steel credit is meant to reward carmakers that use climate-friendly steel produced in Europe. In the worst case, a manufacturer would only need to cut fleet emissions by 87.5 % by 2035.
How it differs from the Commission's plan
The European Commission published its Auto Package at the end of 2025. It proposed a 90 % cut by 2035 and dropped the date for a 100 % target, but it wanted the remaining 10 % fully compensated through green steel and climate-friendly fuels. The Parliament compromise sets a higher headline figure of 95 % but does not demand full compensation for the rest. Germany and France had agreed on a 90 % cut without compensation.
Either way, the outcome is the same for buyers: the 2035 date would no longer mean the end of new petrol, diesel and hybrid cars in the EU. A small share of new cars could still burn fuel, while most of the market would need to be electric.
What happens next
The text is not law yet. The steps ahead, as reported by electrive:
- Environment committee (ENVI): vote expected in early November 2026.
- Plenary: a vote of the full Parliament is likely in December 2026; a simple majority is needed.
- Council: member states need a qualified majority, meaning at least 15 countries representing at least 65 % of the EU population.
- Negotiations: Parliament, Council and Commission then agree the final regulation, and changes are still possible.
For drivers choosing a car now, nothing changes immediately. If you are weighing up a plug-in or a full EV, see our electric car catalogue and the fuel cost comparison.
FAQ
Is the EU 2035 ban on petrol cars cancelled?
Not yet. Two committees voted to allow a 5 % share of emissions after 2035, which would keep some combustion and hybrid cars on sale, but the full Parliament and the member states still have to agree.
What is the green steel credit?
Carmakers could count up to 7.5 percentage points towards the 2035 target by using low-carbon steel made in Europe.
Sources
- electrive: EU Auto Package, committee votes to relax CO2 rules (accessed 26 Oct 2026)
- Brussels Signal: European Parliament strikes deal to soften 2035 combustion engine phase-out (accessed 26 Oct 2026)
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