EU lawmakers on the European Parliament’s Environment Committee have backed plans to revise CO2 emissions targets for new cars and vans sold in the bloc, including new incentives linked to low-carbon steel and certain electric vehicles.

The committee adopted its draft negotiating position by 48 votes to 30, with two abstentions, the Parliament reported on Wednesday.

Under the proposal, the fleet-wide CO2 emissions reduction target for new passenger cars in 2035 would be lowered to 87.5%, from the current 100% target in existing rules.

The draft would also allow manufacturers to use credits for low-carbon steel made in the EU to compensate for emissions up to a cap of 7.5% of the 2021 EU fleet-wide reference target, with the intention of reaching 95%.

For new vans, the committee proposed a 35% CO2 reduction target by 2030, compared with 40% in the European Commission’s text and 50% under existing rules.

The 2035 target for vans would be lowered to 80%, from 100%, with low-carbon steel credits also allowed subject to a 7.5% cap.

Low-carbon steel credits would count for no more than 3% towards meeting specific targets for both cars and vans from the rules’ entry into force until the end of 2034.

Incentives for EU-made EVs and changes to definitions

The committee also proposed “super credits” that would change how some EU-made electric vehicles are counted when calculating a manufacturer’s average CO2 emissions, the Parliament said.

Small EU-made EVs — defined in the text as up to 4.2 metres long — would count as 1.4 vehicles, while certain “highly efficient” EU-made EVs would count as 1.2.

If vehicles are registered under a social leasing scheme, the multipliers would rise by 0.1, to 1.5 and 1.3 respectively.

Pure electric vans made in the EU would count as 1.2 vehicles until the end of 2034 and 1.4 from 2035.

MEPs also proposed changing how some vehicles are classified for the purposes of the rules.

The draft introduces a definition for “vehicles running exclusively on eligible fuels” — meaning cars and vans using only renewable and low-carbon fuels meeting specified criteria — and would modify the definition of “zero-emission vehicles” to include both vehicles with zero CO2 tailpipe emissions and those running exclusively on eligible fuels.

The rapporteur for the file, Massimiliano Salini, said the approach would keep registration of combustion engine cars possible “without compensation obligations” and would also treat vehicles powered exclusively by renewable fuels that meet the renewable energy directive as “zero-emission.”

The Parliament’s mandate for negotiations with EU governments is expected to be voted on during the December 2026 plenary session.