In the European Parliament, three key committees have now voted on a central part of the Auto Package (specifically, a regulatory draft) – with the Environment Committee joining them this week. The result: the majority supports relaxing the CO2 rules for passenger cars and light commercial vehicles, as internally agreed upon by the so-called ‘centre platform’ in October. The Industry and Transport Committees have also proclaimed their support.

This makes it increasingly clear in the European Parliament that a decision is emerging on this important aspect of the Auto Package, which aims to relax the de facto ban on new internal combustion engine (ICE) vehicles in the EU from 2035. The three factions of the centre platform had agreed on a position around three weeks ago. The subsequent committee votes on 22 October by the Industry and Transport Committees and on 4 November by the Environment Committee are now the first tangible results of this internal majority-building, after the tug-of-war over the still-internal negotiating positions had repeatedly leaked.

CO2 rules for vans also set to be relaxed

Specifically, on Wednesday, the Environment Committee voted in favour of a proposal previously developed by negotiators from the conservative EPP, the social democratic S&D, and the liberal Renew Europe group after tough negotiations. Regarding CO2 fleet limits, this draft proposes that manufacturers must reduce the CO2 emissions of their new cars by only 95 per cent instead of 100 per cent (compared to 2021) by 2035. However, they may achieve an additional 7.5 percentage points reduction if they use climate-friendly steel produced in Europe as compensation in their vehicles. In the worst case, the savings target could therefore drop to 87.5 per cent by 2035 under this draft.

For light commercial vehicles, the members from the three aforementioned groups propose a reduction target of 35 per cent by 2030, compared to 40 per cent in the Commission’s draft text and 50 per cent under current regulations. The 2035 target is to be lowered from 100 per cent to 80 per cent under the centre platform’s proposal (with a credit of up to 7.5 percentage points for low-CO2 steel also applicable here). According to the three factions, this means there would still be room for new ICE and hybrid vehicle registrations for cars and vans even after 2035.

Regarding the period leading up to 2035, the majority of Environment Committee members also support allowing credits for low-CO2 steel to be counted from the time the revised regulation enters into force until the end of 2034. The maximum credit discussed is 3 percentage points.

48 votes in favour, 30 against, and two abstentions

According to a statement from the European Parliament, this proposal received 48 votes in favour, 30 against, and two abstentions during the Environment Committee vote. The regulatory draft – part of the broader Auto Package – was thus adopted. Previously, the Industry Committee had already voted with 49 in favour, 27 against, and five abstentions. In the Transport Committee, the protocol recorded 27 votes in favour, 18 against, and one abstention. According to Handelsblatt, all EPP, S&D, and Renew members in the Industry Committee voted in favour of this proposal, indicating strong unity. This level of consensus is not confirmed for the other two committees. Ultimately, the decisive vote will take place in the plenary session, scheduled for December.

Commenting on the latest vote, Italian EPP MEP Massimiliano Salini said: “Our agreement marks a turning point for the European automotive industry. The approval of vehicles with internal combustion engines without offset obligations would remain possible, preserving technological freedom and restoring prospects for the entire supply chain.” He added: “Decarbonisation does not mean prescribing a single technology – we also recognise vehicles as emission-free if they run exclusively on renewable fuels that comply with the Renewable Energy Directive, similar to electric vehicles.” And: “Low-CO2 steel produced in Europe can be used immediately, rewarding European production and strengthening the Union’s strategic autonomy.”

Original EU Commission proposal went further

For context: The EU Commission responded with its “Auto Package” at the end of 2025 to warnings from the automotive industry that sticking to the de facto ICE ban for new cars from 2035 would exacerbate the sector’s crisis. This initiative also came under pressure from Germany. In the Commission’s proposal, the new CO2 fleet target was set at a 90 per cent reduction compared to 2021, equivalent to fleet emissions of 11 grams of CO2 per kilometre – instead of zero grams. The Commission’s draft no longer specified a date for the 100 per cent target.

Importantly, Brussels insisted in its draft on full compensation for the remaining 10 per cent through the use of green steel and climate-friendly fuels. While the centre platform’s compromise also names green steel as a compensation measure, it does not go so far as to require full compensation up to the 100 per cent line.

Recently, German Chancellor Friedrich Merz and French President Emmanuel Macron also agreed on a joint position on the ICE ban. This envisages a 90 per cent CO2 reduction by 2035 – without compensation. According to “Spiegel”, this compromise between Germany and France is considered “groundbreaking for the vote in the Council of EU Member States”. The Council must vote after the Parliament, and changes are always possible during this process.

Vote in European Parliament and Council Imminent

At the beginning of October, the European Parliament’s Transport Committee postponed its vote on the Auto Package by two and a half weeks. This vote was originally scheduled for 5 October. The reason given at the time was that the centre platform needed more time to reach an agreement.

To pass the package, the EU Parliament must first approve it (where the EPP is the largest group), followed by the Member States in the EU Council. In the EU Parliament, a simple majority is sufficient, while the EU Council requires a “qualified majority” – meaning at least 15 countries representing at least 65 per cent of the EU population must agree.

During the consultation process, various interest groups are likely to attempt to amend the draft in their favour. Against this backdrop, the Commission reportedly designed the Auto Package broadly from the outset to offer something to as many countries as possible. In addition to Germany, six other EU countries (all with relatively low electric vehicle shares in their new registrations) had advocated for weaker CO2 targets and support for ICE vehicles. However, France – a previous opponent of this policy – has now apparently switched sides, albeit not without demanding concessions elsewhere: France is reportedly receiving support from Germany on so-called ‘Buy European’ requirements in return.

heise.de (DE), spiegel.de (DE), europarl.europa.eu