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Europe’s 2035 New-Car CO₂ Rule: Current Law and the Proposed Rethink

The EU’s binding 2035 target for new cars and vans remains 100%. A Commission proposal to lower it to 90% was still under consideration on 8 October 2026.
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The EU has not changed its binding 2035 rule. Current law requires a 100% reduction in average CO₂ emissions from newly registered new passenger cars and vans from 2035. The European Commission has proposed lowering that target to 90%, with credits to compensate for the remaining emissions, but the proposal was still under legislative consideration on 8 October 2026.

Is the EU really banning new petrol and diesel cars in 2035?

“Ban” is shorthand for the effect of the current fleet standard, not the wording of a direct ban on combustion-engine technology. Regulation (EU) 2019/631, as amended by Regulation (EU) 2023/851, sets requirements for manufacturers’ average CO₂ emissions from newly registered new passenger cars and vans. From 2035, the enacted target is a 100% reduction against the regulation’s baseline. The European Commission’s overview of the cars-and-vans standards explains the framework.

This is a fleet-average emissions requirement, not a statement that every vehicle sold must be electric. It is also not a general prohibition on owning or driving a petrol or diesel vehicle. The 100% figure describes the regulatory target; it should not be read as a prediction about the powertrain share of sales.

What has the Commission proposed instead?

On 16 December 2025, the European Commission proposed amending the rules to set a 90% reduction target for 2035, with mechanisms to compensate for the residual 10%. The proposal includes credits linked to EU-made low-carbon steel and eligible sustainable fuels. Those mechanisms would have conditions and credit-accounting rules; the proposal is not an unconditional allowance to sell any type or number of combustion vehicles.

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The proposed 90% is still a fleet target, not a promise that exactly 10% of new sales could be petrol, diesel or other combustion vehicles. What manufacturers could register while complying would depend on the final rules and how eligible credits were calculated. See the Commission’s COM(2025) 995 proposal and its 16 December 2025 package announcement.

Current law versus the proposed amendment

Question Enacted framework Commission proposal
2035 target 100% reduction in average CO₂ emissions for new passenger cars and vans 90% reduction, with proposed compensation for residual emissions
Compliance approach Manufacturer fleet-average CO₂ performance requirements Proposed credits, including for eligible EU-made low-carbon steel and sustainable fuels
Legal status on 8 October 2026 Binding law Pending legislative proposal; it had not replaced the binding target
Scope Newly registered new passenger cars and vans Amendments to the light-duty vehicle standards and related labelling rules

The proposal covers cars and vans. Neither the target percentage nor the proposed compensation mechanisms alone establish a precise permitted sales mix.

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Has the EU changed the 2035 car rule?

Not as of 8 October 2026. The Commission’s proposal must pass through the EU legislative process before it can amend the binding framework. The European Parliament’s Legislative Observatory listed procedure 2025/0420(COD) as “Awaiting committee decision” at that date. An indicative plenary date is not evidence that lawmakers have voted, agreed the text or brought an amendment into force. Check the European Parliament procedure tracker for subsequent developments.

Can I still drive my petrol car after 2035?

This fleet standard does not require people to scrap cars they already own, and it does not itself ban driving existing petrol or diesel vehicles after 2035. It concerns manufacturers’ emissions performance for new registrations, not road-use rules for cars already on the road. Separate rules or local restrictions may affect particular drivers or places, but they are outside this EU new-car target.

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How did the proposal reach this stage?

  • 2023: Regulation (EU) 2023/851 amended Regulation (EU) 2019/631 and established the 2035 100% reduction target for new cars and vans.
  • 7 July–29 September 2025: The Commission held a review consultation and invited submissions. The consultation notice gives its scope and dates.
  • 16 December 2025: The Commission tabled COM(2025) 995, proposing the 90% target and compensation mechanisms.
  • 9 February 2026: The European Parliament announced committee referral for procedure 2025/0420(COD). On 8 October 2026, the tracker showed “Awaiting committee decision.”
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What to watch as lawmakers consider the proposal

  • Whether the 2035 target remains 100% or is amended to 90%.
  • Which compensation mechanisms are ultimately eligible and how their credits are calculated.
  • Whether the final rules treat passenger cars and vans differently.
  • Whether and when lawmakers adopt a final text and it enters into force.

Until an amendment is adopted and takes effect, the 100% target in the existing regulation remains the binding rule. A proposal, committee step or indicative sitting does not by itself change that legal status.

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