For a clean and competitive automotive sector
The European Commission presented on 16 December 2025 the Automotive Package to support the sector’s efforts in the transition to clean mobility. It sets an ambitious yet pragmatic policy framework to ensure 2050 climate neutrality and strategic independence while providing more flexibility to manufacturers. It also responds to calls by EU industry to simplify rules.
Key elements
The CO2 standards now provide further flexibilities to support the industry and enhance technological neutrality, while providing predictability to manufacturers and maintaining clear market signal towards electrification. From 2035 onwards, carmakers will need to comply with a 90% tailpipe emissions reduction target, while the remaining 10% emissions will need to be compensated through the use of low-carbon steel Made in the Union, or from e-fuels and biofuels.
With €1.8 billion, the Battery Booster will accelerate the development of a fully EU-made battery value chain. As part of the Battery Booster, €1.5 billion will support European battery cell producers through interest-free loans. Additional targeted policy measures will support investments, create a European battery value chain and foster innovation and coordination across Member States.
The Automotive Omnibus will ease administrative burden and cut costs for European manufacturers, boosting their global competitiveness, and freeing up resources for decarbonisation. Businesses are expected to save approximately €706 million per year, bringing the administrative savings thanks to all omnibuses and simplification initiatives the Commission has presented so far to around €14.3 billion per year.
Regarding corporate vehicles, mandatory targets are set at the Member State level to support the zero- and low-emission vehicle uptake by large companies. Having more zero- and low-emission vehicles on the market, both first- and second-hand markets – will benefit all customers. As companies' cars cover higher yearly mileages, it also means more emission reductions.
Legal documents
Proposal on the revision of the CO2 standards for cars and vans
Battery Booster
Automotive omnibus proposal
Proposal on clean corporate vehicles
Proposal for a regulation of the European Parliament and of the Council on clean corporate vehicles