European Parliament negotiators have agreed to ease proposed 2035 car emissions rules, potentially allowing continued sales of combustion-engine cars.
The compromise between the European People’s Party, Socialists and Democrats and Renew Europe would require an 87.5% reduction in new car CO2 emissions against 2021 levels.
Manufacturers could receive a further 7.5 percentage points of credit through the use of low-carbon steel produced in the EU, according to an agreement text seen by Reuters.
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Agreement still needs approval
The agreement does not change the law. It still requires political approval within the European Parliament, followed by agreement with EU governments on the final legislation.
The existing regulation requires a 100% reduction in fleet-wide CO2 emissions from new cars and vans from 2035, effectively ending sales of new combustion-engine vehicles.
The Parliament’s transport and industry committees are due to vote on their positions on October 22.
The lead environment committee is expected to follow in early November, ahead of a possible parliamentary vote in December.
The compromise follows the European Commission’s December 2025 proposal to replace the 100% requirement with a 90% reduction in tailpipe emissions.
Under the Commission’s proposal, the remaining emissions would need to be compensated through EU-made low-carbon steel, e-fuels or biofuels.
The Commission said that approach would allow plug-in hybrids, range-extender vehicles, mild hybrids and conventional combustion-engine cars to retain a role beyond 2035 alongside electric and hydrogen vehicles.
The parliamentary compromise would lower the required tailpipe reduction further, while providing a credit for European low-carbon steel.
The percentages concern manufacturers’ average fleet emissions. They do not represent a fixed allowance for the proportion of petrol, diesel or hybrid cars that could be sold.
UK deadlines remain separate
For UK car dealers, the negotiations raise questions about manufacturers’ future European model ranges, although any resulting product decisions remain uncertain.
A change to EU rules would not itself alter the UK’s separate phase-out timetable.
In a parliamentary answer published on September 17, the Department for Transport reiterated its intention to end sales of new pure petrol and diesel cars from 2030 and all new non-zero-emission cars and vans from 2035.
The Government also confirmed that it had no plans to phase out petrol and diesel vehicles already in use or sold before those deadlines.
UK mandate review and tariff pressure
The European negotiations come as the UK reviews its own zero emission vehicle mandate, with the consultation closing on October 23.
Launched in August, the review asks whether manufacturers’ annual EV sales targets remain appropriate amid changing market conditions and trade uncertainty.
Alongside the emissions debate, the UK faces pressure to align with EU trade measures affecting Chinese-built vehicles.
Under a Franco-German proposal, Britain could gain access to the EU’s proposed “Made in Europe” framework for automotive procurement and subsidies, but participation would be conditional on reciprocal arrangements and alignment with relevant EU trade protection measures.