The European Commission has proposed easing the previously planned complete ban on CO2-emitting new vehicles by 2035. Instead of a 100 percent reduction in CO2 emissions from new cars compared to 2021, manufacturers would only be required to cut emissions by 90 percent. This adjustment would allow certain hybrid vehicles with small combustion engines that help charge batteries to remain on the market, provided they offset emissions through environmentally friendly steel and sustainable fuels.

The proposal also softens the 2030 interim target, allowing manufacturers up to two additional years to compensate if they miss emissions limits before penalties apply. Electric vehicles will continue to receive support, including special consideration for small European electric cars in fleet emission calculations. The plans have received support from Germany and industry leaders but face criticism from the Green Party, which argues the changes undermine climate goals and increase bureaucracy. The proposals will now be reviewed by EU member states and the European Parliament.