EU environment committee votes to soften 2035 CO2 target to 87.5%

· Automotive & EV · European Union

The European Parliament's environment committee voted to set a target of an 87.5% CO2 reduction for new cars after 2035, easing the bloc's current plan for a full phase-out of combustion engines. If the proposal is approved, up to 40% of cars sold after 2035 could still have internal combustion engines. The vote offers automakers a lifeline as they lobby against the strict 2035 zero-emission rule amid weaker-than-expected EV demand and pressure from China. The measure still needs to clear further legislative steps before taking effect. The change would reshape product and investment plans across Europe's car industry, giving combustion and plug-in hybrid models a longer runway than the current regulation allows.

Why it matters：The 2035 phase-out is the anchor of Europe's EV transition; softening it changes compliance costs, model planning and the pace of electrification for every automaker selling in the EU.

Key points

  • Target is an 87.5% CO2 cut for cars after 2035, rather than a full ban on combustion engines
  • Up to 40% of cars sold after 2035 could still have internal combustion engines
  • The proposal still requires further approval before it becomes law

Sources (original reporting)

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