What happened

On 4 November 2026 the European Parliament's Environment Committee adopted its proposal for revised CO2 targets for new cars and vans, by 48 votes to 30 with two abstentions. Under the current EU law, carmakers' new cars must cut fleet-wide CO2 by 100% in 2035, which in practice ends sales of new petrol and diesel cars. As Philip Blenkinsop reported for Reuters, the European Commission proposed softening that to 90% in December 2025, and the committee backed a compromise from three mainstream party groups instead.

What MEPs on the committee want, from the Parliament's own release:

  • Cars: the 2035 target falls from a 100% to an 87.5% cut. Makers would cover a further 7.5% (of the 2021 EU fleet-wide reference target) with credits for low-carbon steel made in the EU, to reach 95%.
  • Vans: a 35% cut by 2030 (the Commission proposed 40%, and today's law says 50%) and an 80% cut by 2035 instead of 100%, again with steel credits capped at 7.5%.
  • Renewable fuels: cars and vans running only on eligible renewable and low-carbon fuels would count as zero-emission vehicles.
  • Super credits: small electric cars up to 4.2 metres long and made in the EU would count as 1.4 cars in a maker's average, and highly efficient EU-made electric cars as 1.2.

The same day, the Transport and Environment Committees adopted, by 89 votes to 29 with four abstentions, their position on corporate fleets. It covers cars and vans registered by large businesses in EU countries, with more than 250 employees and turnover over €50 million. Each EU country would get an aspirational target for the share of zero- and low-emission vehicles in new corporate registrations by 2030 and 2035, from 67% to 95%, and national plans from 2028. From 2028, public financial support would only go to zero- or low-emission corporate cars and vans made in the EU. Reuters reported that the committees downgraded the mandatory fleet targets the Commission had proposed to aspirational goals.

The Parliament says businesses buy 58% of new cars and 90% of new vans in the EU each year, and only 17% of corporate car registrations in 2025 were zero emission. Both positions go to the full Parliament in December 2026, then to negotiations with EU governments. Reuters reported that France and Germany agreed last month that the car target should be 90%, so the final figure is still open.

What it means for your business

In the UK, nothing changes. Cars and vans sold in Great Britain come under the ZEV mandate, not the EU law. The government's review of the ZEV mandate is looking at the yearly targets for 2030, but every option keeps the end of new cars that rely solely on petrol or diesel in 2030 and 100% zero emission new cars and vans in 2035.

If you run vehicles in the EU, the fleet rules matter more than the carmaker targets. A UK group with an EU subsidiary of more than 250 staff could see its EU fleet fall under national plans, and from 2028 lose any public support for petrol or diesel company cars and vans there, if the Parliament's version becomes law.

Your carbon report does not follow the targets. A softer target for carmakers means more new petrol and hybrid cars may stay on sale after 2035 in the EU, but you report what your vehicles actually burn or draw from the grid, with the government's factors. The choice of car still drives the number.

A worked example: one company car, three fuels

Take an illustrative average-size company car doing 12,000 business miles a year, on the 2026 UK government conversion factors:

  • Petrol: 12,000 miles × 0.25993 kg CO2e per mile =3.12 tonnes CO2e (Scope 1).
  • Hybrid: 12,000 miles × 0.20857 = 2.50 tonnes CO2e, about 20% less than petrol.
  • Battery electric: 12,000 miles × 0.04322 =0.52 tonnes CO2e of charging electricity (Scope 2), about 83% less than petrol.

Across a fleet of 10 such cars, choosing electric over petrol is the difference between 31.19 and 5.19 tonnes a year. These figures leave out well-to-tank emissions and grid losses, which a full Scope 3 report adds.

What to do now

  1. Plan UK fleet changes on the UK dates, 2030 and 2035, not on EU headlines. Check the ZEV mandate review outcome when the government publishes it.
  2. If you have EU operations with more than 250 staff, note the corporate fleet proposal and watch the December plenary vote and the talks with EU governments that follow.
  3. Compare cars on emissions per mile when leases end, using the current factors, as in the example above.
  4. Keep mileage and fuel records by vehicle and fuel type, so your report can show the change when the fleet moves to electric.