The European Parliament's centre now has a number for 2035. Negotiators for the conservative EPP, the Socialists and Democrats (S&D) and the liberal Renew Europe group agreed overnight into Tuesday, 20 October 2026, in Strasbourg on how far to relax the rule that new cars sold in the EU must emit no CO₂ from 2035, Der Spiegel reported. ARD's Brussels studio has seen the paper, tagesschau writes, and a source confirmed its outline to Brussels Signal.
What the three groups agreed
On paper, new cars would have to emit 95% less CO₂ in 2035 than the 2021 baseline. Carmakers that build climate-friendly steel into their cars could go a further 7.5 percentage points lower, to an 87.5% cut. That leaves room for new combustion cars and hybrids after 2035 without billion-euro fines. According to tagesschau, the paper also eases the targets for the transition years, but none of the reports gives figures for that part.
| Position | 2035 cut against 2021 | Offsets |
|---|---|---|
| Law since 2023 | 100% | None |
| Commission proposal, December 2025 | 90% | The remaining 10% made up with EU low-carbon steel (up to 7 points) and clean fuels (up to 3 points) |
| France and Germany, 16 October 2026 | 90% | None required |
| Parliament centre groups, 20 October 2026 | 95%, or 87.5% with green steel | Green steel worth up to 7.5 points |
A carmaker using the full steel allowance could sell new cars emitting up to an eighth of the 2021 level. The Commission's proposal and the Franco-German position both stop at a tenth.
The deal is not yet official. Each group still has to approve what its negotiators agreed. Before it, the EPP had been expected to push a looser text through with votes from the far right, Spiegel notes; the deal now points to a majority in the centre instead.
What it means for Tesla
Every Tesla sold in Europe is electric and counts as zero, so Tesla complies under any of these versions. A green-steel credit lowers the measured emissions of combustion and hybrid sales. Tesla sells neither, so it gains nothing directly.
What Tesla does feel is the demand for compliance help. EU rules let a carmaker above its target pool its fleet with one that sells only electric cars, and pay for it. That market has been moving away from Tesla: its regulatory-credit revenue fell to $146 million worldwide in the second quarter of 2026. A looser end point, plus whatever transition relief the paper contains, reduces what the laggards need to buy. Tesla reports its third-quarter results on 21 October.
What happens next
The transport and industry committees vote on Thursday, 22 October. The lead environment committee follows in early November, and the full Parliament is now expected to adopt its position in December, not on the 23 November date reported earlier. The transport committee had already postponed its vote from 5 October to give the centre groups time.
Parliament then negotiates the final text with the member states, where France and Germany back 90% with no offsets, and with the Commission. Until both sides adopt a new text, the 100% target adopted in 2023 remains the law.