Automakers receive relief as EU eases 2035 emissions standards
The European Parliament's Environment Committee approved a proposal to reduce the emissions reduction target from 100% to 87.5%, allowing more internal combustion engine vehicles to be sold after 2035.
The vote took place on November 4. The proposal also includes recognizing vehicles running exclusively on approved fuels, including biofuels, as zero-emission vehicles.
Special coefficients are planned for small and ultra-efficient electric vehicles produced in the EU. Each eligible small electric vehicle will count as 1.4 vehicles when calculating compliance with the standards, while larger ultra-efficient models will have a coefficient of 1.2. This will enable automakers to offset the sales of a greater number of internal combustion engine vehicles.
Manufacturers will be able to offset up to 7.5% of emissions with credits for low-carbon steel produced in Europe. The exact efficiency requirements for electric vehicles have not yet been announced. Separately, the committee eased requirements for vans, lowering both intermediate and final emissions reduction targets.
The European Automobile Manufacturers' Association called the decision pragmatic but considered the proposed relief measures insufficient in scale and timeline. Toyota also welcomed the step while calling for greater flexibility.
European companies had sought changes amid the high cost of electric vehicle batteries. More profitable internal combustion engine models allow them to maintain flexibility, even as electric vehicle sales in Europe have risen this year due to increasing gasoline and diesel prices. The package of measures also includes the development of a European battery production chain and a reduction in regulatory burdens.
