ECG — 2025-12-17
News from ECG
The European Commission on 16 December 2025 published a comprehensive Automotive Package designed to reshape the EU’s automotive policy by balancing decarbonisation goals with the need to maintain industry competitiveness. The package proposes significant revisions to how carmakers will meet emissions targets and introduces measures to support the European automotive sector’s growth and transition.
Under the new framework, the Commission has eased the planned 2035 zero-emission requirement for new cars and vans. Instead of the previously agreed 100 % emission reduction by 2035, carmakers would now need to achieve a 90 % reduction compared with 2021 levels. The remaining 10 % of emissions can be offset through the use of low-carbon steel produced in the EU, biofuels or e-fuels. This change effectively allows vehicles such as plug-in hybrids, range extenders, and other low-carbon technologies to remain on the market alongside fully electric and hydrogen models.
To further support industrial competitiveness, the package introduces additional flexibility for reaching interim targets. Manufacturers can bank and borrow compliance credits between 2030 and 2032 and the Commission has adjusted the 2030 CO₂ reduction target for vans to reflect slower electrification in that segment.
The Commission is additionally proposing targeted amendments to CO₂ standards for heavy-duty vehicles, offering greater flexibility to help the industry meet its 2030 targets.
Another key element of the package is the revised Greening of Corporate Fleets proposal. The Commission has removed heavy-duty vehicles (HDVs) from mandatory targets under this initiative, focusing instead on measures that will encourage uptake of zero- and low-emission vehicles by large corporate fleets at the Member State level.
ECG welcomes the Commission’s decision to leave out mandatory targets for HDVs from the Greening of Corporate Fleets initiative, noting that this reflects ongoing market challenges in deploying and operating zero-emission trucks, particularly due to limitations in charging infrastructure, grid capacity and other constraints.
ECG has published a response to the consultation on the Greening of Corporate Fleets that is available here.
The proposal will now reach the European Parliament and the Council for adoption.