European Commission Adjusts CO₂ Emission Standards for Cars: A Positive Step Forward
Yesterday, the European Commission issued an ’Automotive package’ of proposals including revising the CO₂ standards for passenger cars and vans. .
This marks a significant shift in the public debate while sending a clear, pragmatic message to the automotive industry and other stakeholders that battery electric vehicles continue to be considered the prevailing and dominant technology upon which the transformation of car industry is going to rest. Among other positive proposals are a ‘small electric car’ initiative to encourage uptake and reduce prices for small affordable BEVs, and a binding obligation for large corporate fleets to electrify.
The most notable change is the adjustment of the 2035 target from 100% emissions reduction to 90%. This is a positive development, as it finally ends the narrative of an outright ban on internal combustion engine (ICE) vehicles in 2035, which has long been used to mislead the public debate.
While EU legislation never required any ban of ICE post 2035, the false perception of a “ban” was at the core of significant opposition to the CO2 regulation. This misunderstanding/manipulation resulted in significant negative messaging against electric vehicles in the public debate which in turn impacted consumer demand. We are pleased that this narrative is now off the table, allowing industry and media to focus on constructive discussions about the benefits of electric vehicles for European consumers and industry.
Another important clarification is the role of e-fuels based on hydrogen. While these fuels will theoretically remain part of the mix, the Commission’s communication makes it clear they will not represent a major share of the fleet by 2035. Their contribution is expected to account for roughly 3% of the CO₂ reduction target, offering some flexibility without undermining the broader electrification strategy.
Crucially, the 2030 target remains unchanged. This continuity provides a strong incentive for the industry to accelerate electrification efforts over the next five years. Maintaining this milestone ensures that progress toward decarbonization stays on track in the next five years, even as the long-term framework evolves. In Poland, Croatia and Slovakia this positive trend is demonstrated by more than 50% growth of BEV fleet size over the past 12 months, and 26% EU wide
Overall, these changes strike a balance between ambition and realism, supporting innovation and investment, while deescalating a part of political pressure. The automotive sector now has a clearer roadmap to deliver sustainable mobility for Europe.
