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EU Parliament mulls watered-down CO₂ reductions for cars in Auto Package debate

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EU Parliament mulls watered-down CO₂ reductions for cars in Auto Package debate

A compromise on the Auto Package is emerging in the European Parliament, under which the de-facto ban on new combustion engines in the EU from 2035 is to be relaxed. According to media reports, the three factions of the so-called Center Platform have agreed on a position. A first committee vote on Thursday will show how stable the majority is.

According to Spiegel, the conservative EPP, the social democratic S&D, and the liberal Renew Europe group have agreed that manufacturers should reduce the CO₂ emissions of their new cars by 87.5 per cent (compared to 2021) by 2035. This means that, under the proposal from the three groups, there would still be scope for further registrations of new internal combustion engine and hybrid vehicles.

According to Spiegel, negotiators from the three aforementioned groups reached this agreement in the early hours of Tuesday. Part of the deal reportedly includes “strong incentives to use steel produced in a climate-friendly manner.” Whether the compromise will hold will become clear as early as Thursday: the European Parliament’s Transport and Industry Committees will vote on the reform then. According to Spiegel, the Environment Committee is expected to follow in early November, with the plenary session likely in December.

For context: At the end of 2025, the European Commission responded to warnings from the automotive industry with its ‘Auto Package’, acknowledging that sticking to the de facto ban on new internal combustion engine cars from 2035 would exacerbate the sector’s crisis. This move also came under pressure from Germany.


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