The European Parliament has adopted a broad set of amendments to the EU’s car CO₂ framework, blending limited flexibility for manufacturers with stricter oversight, social safeguards and a cautious opening to synthetic fuels.
What emerged from the vote is less a victory for any single political group than a negotiated middle ground. Elements from the EPP, S&D, Renew, Greens, The Left and PfE all made it into the final text, though often tempered through compromise.
At the core, lawmakers retained the three-year compliance window for 2025–2027, but moved to contain its potential downsides. A safeguard backed by Renew makes clear that the flexibility mechanism cannot be used to weaken overall climate ambition or delay the transition, while obliging the Commission to report annually on its impact.
Several amendments tighten how that flexibility will work in practice. Manufacturers that exceed emissions targets over the three-year period will face closer scrutiny in subsequent years, with future assessments weighted annually. At the same time, all manufacturers—including those benefiting from derogations, will now have to report on their performance every year.
Pooling rules, often criticised as a loophole, were also narrowed. Companies can still form pools until the end of 2027, but each participant must now meet at least 95 % of its own emissions target, limiting the extent to which weaker performers can rely on stronger partners.
A strong social thread runs through the package. Parliament agreed that at least 50 % of revenues from excess emissions penalties should be channelled into programmes supporting a “just transition”, including worker retraining, regional support and job creation linked to zero-emission technologies. In addition, access to certain flexibilities, such as super-credits, will now depend on manufacturers submitting workforce plans with commitments on reskilling and job security.
Lawmakers also addressed the practical constraints of the transition. The Commission will be required to assess by 2030 whether charging and hydrogen infrastructure is sufficiently developed, a provision that could shape future policy adjustments. Separate amendments emphasise the affordability of low-emission vehicles and call for simpler administrative procedures to reduce regulatory burden.
One of the more contested outcomes is the inclusion of synthetic fuels. Parliament backed a requirement for the Commission to establish a framework by 2027 for vehicles running exclusively on CO₂-neutral e-fuels, allowing them to be treated as zero-emission under the 2035 targets. This is coupled with an EU-wide definition and certification system based on lifecycle emissions and third-party verification.
Finally, the Parliament signalled a more proactive role in shaping demand. The Commission is now expected to propose legislation by the end of 2026 to phase in the electrification of large corporate fleets, targeting companies with more than 250 employees.
Taken together, the adopted amendments do not overturn the EU’s climate targets, but they do reshape how the transition will unfold, making it more conditional, more socially anchored and, inevitably, more complex.
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