The European Parliament's lead committee on car CO2 rules has backed a weaker 2035 target, and super-credits that only electric cars built in the EU can earn. On 4 November 2026 the Environment Committee (ENVI) adopted its position on the revised CO2 standards for new cars and vans by 48 votes to 30, with two abstentions. The industry and transport committees voted for the same centre-group compromise on 22 October.
The targets
For cars, the committee wants the 2035 fleet-wide reduction target lowered from 100% to 87.5%. Carmakers would also have to compensate for emissions of up to 7.5% of the 2021 reference with credits for low-carbon steel made in the EU, to reach a 95% target. Until the end of 2034, steel credits could count for no more than 3% towards a carmaker's target.
| Target | Current law | Commission, December 2025 | ENVI, 4 November 2026 |
|---|---|---|---|
| Cars, 2035 | 100% | 90% | 87.5%, plus up to 7.5 points of steel credits (95%) |
| Vans, 2030 | 50% | 40% | 35% |
| Vans, 2035 | 100% | — | 80%, steel credits capped at 7.5% |
The committee would also count "vehicles running exclusively on eligible fuels", cars and vans that run only on renewable and low-carbon fuels meeting set criteria, as zero-emission vehicles, alongside those with no tailpipe CO2.
Super-credits only for EU-made electric cars
In a carmaker's average, a small electric car, at most 4.2 metres long and made in the EU, would count as 1.4 vehicles. A "highly efficient" electric car, made in the EU and meeting strict energy-consumption thresholds, would count as 1.2. Under a social-leasing scheme, the multipliers rise by 0.1, to 1.5 and 1.3. EU-made electric vans would count as 1.2 until the end of 2034 and as 1.4 from 2035.
That is narrower than TeslAnt's reading in October, when no origin rule had been reported for the "particularly efficient" category and both Teslas looked like candidates on energy use. With the "made in the EU" condition, only the Grünheide-built Model Y could qualify. The Model 3 sold in Europe is built in Shanghai, and both cars are too long for the small-car category. The efficiency thresholds have not been published, and "made in the EU" is still to be defined under the Industrial Accelerator Act. The categories themselves were defined in the separate automotive omnibus vote on the same day.
Why the multipliers matter to Tesla
Every Tesla is electric, so Tesla meets any version of these targets. The rules reach it through pooling: a carmaker above its target can pool its fleet with Tesla's and pay for the help. Lower targets, zero-emission status for fuel-only cars and multipliers for rivals' own EU-built small cars all shrink what a laggard needs to buy. In a pool, each qualifying Model Y would count as 1.2 cars. Tesla's worldwide regulatory-credit revenue was $113 million in the third quarter, according to its quarterly results.
What happens next
The full Parliament is expected to vote on its negotiating mandate at the December 2026 plenary, and must then agree the final text with EU governments. Until a new text is adopted, the 100% target adopted in 2023 remains the law.