The European Parliament’s vote on the EU Commission’s Auto Package—a proposal to ease 2035 CO₂ targets for new cars—has been delayed by at least two weeks. The vote was originally slated for October 5, but the Transport Committee meeting now faces uncertainty as internal negotiations stall within the Centre Platform, a coalition of centre-right and centre-left lawmakers.
The postponement gives member states additional time to review the economic impact of the measures and to seek further compromises before a final decision is taken. The delay stems from the need to secure the support of at least 15 countries representing at least 65 per cent of the EU population, a qualified majority requirement in the Council that ensures broader political backing for the compromise.
The delay reflects deeper divisions over how strictly the EU should enforce its 2035 combustion-engine phase-out. The Auto Package, unveiled in late 2025, replaces a near-total ban with a 90% CO₂ reduction target (from 2021 levels). Under the new rule, an average of 11 grams per kilometre of emissions would be allowed, which translates into roughly 27–29% of new sales being able to remain internal-combustion-engine (ICE) vehicles after 2035. The Commission’s approach deliberately aims to balance climate goals with industrial competitiveness, acknowledging that a rigid phase-out would exacerbate Europe’s automotive crisis while still pushing for long-term electrification.
Flexibility sparks EU split on ICE vehicles
This shift came after automakers warned that a full 2035 ban would deepen Europe’s automotive crisis. The proposal ties ICE vehicle sales to compensation measures, such as using green steel or e-fuels to offset emissions. The inclusion of these offsets is intended to spread the burden across the supply chain, but the practical feasibility hinges on the availability and cost of these technologies by 2035, which remains uncertain. Germany and six other EU countries with lower EV adoption rates have been vocal advocates for this flexibility, while nations like Spain, France, Denmark, and Belgium push for stricter electrification timelines.
Super Credits, a key concession, reward manufacturers for selling small electric vehicles (under 4.20 metres). A Volkswagen ID. Polo, for example, would count as 1.3 vehicles in fleet calculations, incentivising affordable EV models. The idea originated with Spain and France, which had pushed for limited flexibility while still favouring electrification. This mechanism is designed to accelerate the rollout of compact EVs in markets where larger models dominate. The Commission explicitly framed the Super Credits as a way to promote market access for affordable electric vehicles, addressing concerns that stricter regulations could disproportionately benefit premium automakers.
2030 targets softened for automakers and trucks
The 2030 interim targets face relaxation. Instead of fixed annual reductions, automakers now have until 2032 to meet the 50% CO₂ cut (down from the original 2030 deadline). Truck manufacturers get further leeway, with their 2030 target reduced to 40%. These adjustments aim to align regulatory timelines with realistic production and technology-deployment schedules.
Beyond passenger cars, the Auto Package includes a €1.5 billion “Battery Booster” fund intended to accelerate EU battery production. The Commission also aims to simplify bureaucratic hurdles for automakers. For trucks, the proposal allows manufacturers to bank excess credits before 2030, easing compliance and providing a safety net for firms that exceed their obligations early. The Battery Booster fund, launched in July, offers interest-free loans to cell manufacturers and streamlined permitting processes, reflecting the EU’s recognition that infrastructure limitations currently bottleneck battery production in Europe.
