A step towards transport decarbonizationThe European Parliament's Environment Committee has approved a proposal for revising the EU's carbon dioxide emissions targets, introducing incentives for electric vehicles produced within the EU and recognizing a role for renewable fuels and low-emission combustion engines. The resolution, passed with 48 votes favorable, 30 opposed, and two abstentions, has modified one of the pillars of Europe’s strategy for decarbonizing transportation. This decision is due to the compromise reached among those involved in the discussion that allowed reaching a positive outcome.

The current objective, set by Regulation (EU) 2019/631 of the European Parliament and Council, envisaged a reduction of 100% of average CO2 emissions from new cars and trucks but has now been scaled down to 95%, with credits linked to the use of low-emission steel produced within the EU. Additionally, through the carbon offset mechanism based on credits linked to the production of low-emission steel in the EU, manufacturers can compensate up to 7.5 percentage points below the reference value, thus achieving a comprehensive target of 95%. This step occurs at a time when Europe is trying to overcome the cessation of sales of new cars with internal combustion engines that was foreseen for 2035.

The legislative review is still under discussion, but this decision opens up a new front within the context of an increasing trend towards the decarbonization of transportation. The change in stance by the EU does not only alter the automotive sector landscape, but also has implications for the future perspectives of internal combustion engines and electric vehicles. This push towards carbon reduction should lead to more balanced markets in automobiles and electric vehicles, avoiding further restrictions like those imposed from 2035. However, this change has not been without consequences. According to the text ENVI dated November 4th, 2026, small electric cars produced in the EU, with a maximum length of 4.2 meters, would count as 1.4 vehicles when calculating average emissions of manufacturers.

This measurement system could have a significant impact on corporate competitiveness and vehicle quality standards. In conclusion, while this decision opens up a new front in discussions about carbon dioxide emissions norms, it is important to consider the consequences of this change for the future prospects of the automotive industry and the European transport sector's decarbonization.