Parties to the Agreement and Work Stage

• Negotiators from the EPP, S&D, and Renew reached a preliminary agreement on CO₂ emission standards for new vehicles.
• The project aims to reduce the average fleet emissions by 87.5% compared to the 2021 level instead of achieving zero emissions by 2035.
• Manufacturers using low-emission steel from Europe could lower the required reduction threshold from 95% to 87.5%.
• The agreement still requires approval from the parliamentary committee, a plenary vote in the EP, and acceptance by the EU Council.

As reported by a journalist from RMF FM, negotiators from the European People's Party (EPP), the Socialists and Democrats (S&D), and the liberals from the Renew Europe group reached a preliminary agreement on the night from Monday to Tuesday (End of the ban on combustion engines after 2035? There is a groundbreaking compromise in the EP – RMF24). The compromise is intended to serve as a basis for establishing regulations at the EU level. The decision is not yet final – it requires approval from the parliamentary committee, a plenary vote in the EP, and acceptance by the EU Council.

New Emission Reduction Targets

The regulations in force so far stipulated that after 2035, every new passenger and light commercial vehicle registered in the Union would have to emit no CO₂. The compromise project instead proposes reducing the average emissions of the manufacturer's fleet by 87.5% compared to the 2021 level. The baseline reduction threshold would be 95%, but manufacturers using low-emission steel produced in Europe could lower this requirement to 87.5%. This mechanism takes into account emissions over the entire life cycle of the vehicle, including the production of components.

Market and Business Implications

After 2035, some new cars with combustion and hybrid engines may still be introduced to the market if manufacturers meet certain conditions. This change softens the previous course of the Union, which aimed to completely eliminate emissions from new cars (Not just electric cars. The Union is again softening its stance on cars after 2035 – autokult.pl).

For companies in the automotive industry, importers, and dealers, the preliminary agreement provides the opportunity to plan activities over a longer time horizon than previously anticipated. Manufacturers gain flexibility in choosing propulsion technologies, and suppliers of low-emission steel from Europe can expect increased demand from automotive corporations.