EU Committee Proposes Looser 2035 CO2 Targets With Low-Carbon Steel and E-Fuel Credits

European lawmakers are proposing to soften the EU's 2035 combustion vehicle restrictions. The Parliament's Environment Committee voted 48-30 to keep a CO2 reduction target for passenger cars at 87.5%, with automakers able to cover up to 7.5% through low-carbon steel credits. That would bring the effective target to 95%, leaving limited room for gasoline and diesel vehicles after 2035. The proposal also recognizes vehicles running exclusively on eligible low-carbon or renewable fuels as zero-emission, and gives small EU-built EVs a 1.4 vehicle multiplier in fleet CO2 calculations. Commercial van targets would drop to a 35% reduction by 2030 instead of the current 50%. The package still needs approval from the full Parliament and EU member states, so final numbers could change.