The European Parliament has cast its first formal votes to soften the rule that new cars must emit no CO₂ from 2035. On 22 October 2026, the industry committee (ITRE) backed the centre groups' compromise by 49 votes to 27 with five abstentions, and the transport committee (TRAN) by 27 to 18 with one abstention, dpa reported. The compromise, which negotiators for the EPP, S&D and Renew Europe agreed on 20 October, sets the 2035 target at a 95% cut against 2021, of which up to 7.5 percentage points can come from climate-friendly steel made in Europe.
How the committees split
| Committee | For | Against | Abstained |
|---|---|---|---|
| Industry, Research and Energy (ITRE) | 49 | 27 | 5 |
| Transport and Tourism (TRAN) | 27 | 18 | 1 |
In both committees the EPP, the Socialists and Democrats (S&D) and Renew Europe voted in favour. The no votes came from both ends of the chamber: the ECR, Patriots for Europe and Europe of Sovereign Nations on the right, and the Greens/EFA and the Left on the other side. In the transport committee one Finnish Left member voted yes and a Lithuanian Green abstained, according to dpa.
Jens Gieseke (CDU), the EPP's transport spokesman and one of the negotiators, said carmakers need flexibility and planning certainty. Vivien Costanzo (SPD) of the S&D called the text a compromise and said strict "Made in EU" rules should follow soon. The Greens' Michael Bloss accused Social Democrats and conservatives of backing the combustion engine and slowing down electric mobility.
What the compromise contains
The 95% figure includes the steel allowance. A carmaker that uses all of it needs only an 87.5% cut in measured emissions, which is how Reuters described the deal when it was struck. Reuters also reported its other terms:
| Car rules | Commission proposal, December 2025 | Committee-backed compromise |
|---|---|---|
| 2035 target | 90% cut, the rest offset by EU low-carbon steel and clean fuels | 95% cut, up to 7.5 points of it from EU green steel |
| 2030 target | 55% cut, averaged over 2030–2032 | 55% cut, averaged over 2029–2031 |
| Renewable fuels | Credit worth up to 3 points | Cars running on them could count as zero-emission |
| Super-credits | Electric cars under 4.20 m | Small affordable and particularly efficient electric cars |
What it means for Tesla in Europe
Every Tesla sold in Europe is electric, so Tesla meets any version of these targets. The rules reach it through the compliance market: a carmaker above its target can pool its fleet with an all-electric one and pay for the help. Averaging the 2030 target over three years, zero-emission status for renewable-fuel cars and wider super-credits all reduce what a laggard needs to buy. Tesla's worldwide regulatory-credit revenue was $113 million in the third quarter, against $417 million a year earlier, according to its quarterly results.
The super-credit clause has also changed. The Commission's 4.20 m length limit excluded every Tesla, since the Model 3 and Model Y are both longer. The compromise adds "particularly efficient" electric cars without defining them. Measured on energy use, both Teslas would be candidates, but no threshold has been published.
What happens next
The two committee votes are not yet Parliament's position. The lead environment committee (ENVI) votes in early November, and the full Parliament is expected to adopt its position in December. Parliament must then agree the final text with the member states, where France and Germany back a 90% cut with no offsets. Until both sides adopt a new text, the 100% target adopted in 2023 remains the law.