A key European Parliament committee voted Nov. 4 to weaken proposed EU car emissions targets for 2035. If approved, it would free automakers from a requirement that they could only sell zero-emissions vehicles after that date.

The committee on the Environment, Climate and Food Safety voted to set a target of 87.5 percent CO2 reduction for cars from the 2021 target of 95 grams per kilometer. That could mean that up to 39 percent of cars sold after 2035 would still have internal-combustion engines, most likely plug-in hybrids or extended-range electric vehicles, according to an analysis from green lobby group Transport & Environment.

The emissions targets are part of a comprehensive automotive package proposed by the European Commission in December 2025. The commission proposed a 90 percent cut in emissions, but the Parliament committee would further ease that, granting relief to European automakers who are battling increasingly stiff competition from China at home and a shrinking share of the Chinese market abroad.

The Environment committee proposal was backed by three main political parties in the EU. The full EU Parliament is due to vote on the auto package in December. This will establish Parliament’s position for subsequent negotiations with the Council, the grouping of EU governments, which is still deliberating on the issue.

EU lawmakers are also debating the Industrial Accelerator Act, which includes “Made in Europe” requirements for battery-electric vehicles to be eligible for government and fleet incentives.

The Environment committee’s emissions proposal also revises 2030 targets for vans to a 35 percent cut from the Commissions proposed 40 percent. Automakers with large van businesses, including Stellantis and Renault, have argued that uptake of electric vans is far below target levels. The 2035 van target would be 80 percent reduction.

Automakers would have to offset an additional 7.5 percent of emissions (to a maximum of 95 percent) with green steel made in the EU.

Other benefits for automakers include emissions averaging of the 2030 target, super-credits for small battery-electric vehicles made in Europe, and for “efficient” EVs made in Europe of any size. A small EV (4.2 meters or less) would qualify for 1.4 credits, while efficient EVs would be worth 1.2 credits.

Vehicles running on eligible alternative fuels such as biofuels and e-fuels would also be recognized as zero-emission after 2030.

Reuters contributed to this report