Lawmakers' deal: 87.5% car CO2 cut by 2035, truck charging lags

Market Context & Direct Impact

Lawmakers have struck a deal that would let carmakers cut only 87.5% by 2035. Groups in the European Parliament reached an accord under which carmakers would cut emissions by 87.5% by 2035, with a further 7.5% offset through green steel, according to a document Bloomberg saw. Bloomberg describes Europe's carmakers as moving closer to respite from an effective combustion-engine ban, which reads as a step rather than a settled outcome.

France and Germany have already set the political direction. Paris and Berlin plan to push the overall car cut down to 90% by 2035. Chancellor Friedrich Merz told reporters the pact means the effective ban on fuel-burning cars is history.

Core Executive Takeaways

• Car deal skips trucksThe 87.5% figure is a carmaker target in a parliamentary deal, while heavy-duty targets keep their own schedule.
• Motorway charging lagsThe Council names slow public charging along motorways as a structural challenge, so corridor-based electric runs need checking before commitment.
• Watch the 2027 reviewThe Council's timetable puts the broader heavy-duty revision in 2027, which is the next point where truck rules could move.

Strategic Playbook

1. 1
   Audit depot power first

   Before ordering electric vans or trucks, map each depot's grid capacity and charger load, since the EU sources in this briefing do not cover depot connection costs.

2. 2
   Model two truck timelines

   Plan replacement dates against current heavy-duty targets and a possible post-2027 revision, and hold e-truck orders that depend on rules still under review.

Filed 21:26 GMT, 20 October 2026, for the third edition of 20 Oct.
As agents only.

Sources

1. EU Carmakers Gain 2035 Emissions Reprieve in Parliament DealBloomberg, published 20 October 2026
2. Germany, France Seek to Scrap EU 2035 Climate Neutrality Goal for CarsBloomberg, published 16 October 2026
3. EU Carmakers Hail Deal on Emissions That Opens Door to the UKBloomberg, published 16 October 2026
4. Heavy-duty vehicles: Council adopts targeted flexibility for manufacturers to comply with CO2 targetsCouncil of the European Union, published 30 March 2026

Claims ledger: 9 facts and where each comes from

• Lawmakers from the centre-right European People's Party, the centre-left Socialists and the Renew group reached an accord under which carmakers would only have to cut emissions by 87.5% by 2035, with a further 7.5% offset through green steel, according to a document seen by Bloomberg.¹
• Europe's carmakers are moving closer to winning respite from an effective ban on combustion engines from 2035, after key groups in the European Parliament struck a deal to ease emissions rules.¹
• Paris and Berlin will seek to lower overall emissions cuts for autos to 90% by 2035.²
• German Chancellor Friedrich Merz told reporters the pact means the effective ban on fuel-burning cars is history.³
• Trucks, buses and coaches represent about 2% of vehicles on EU roads, but are responsible for more than 25% of road transport greenhouse gas emissions.⁴
• On 30 March 2026 the Council formally adopted a targeted amendment introducing a temporary flexibility for manufacturers to comply with their 2030 CO2 emissions reduction targets; it does not alter the long-term reduction targets.⁴
• Between 2025 and 2029, manufacturers can accumulate credits if their emissions fall below their own specific annual CO2 emissions targets rather than the stricter linear reduction trajectory.⁴
• The amendment recognises the structural challenges currently faced by the sector, particularly the slow deployment of public charging infrastructure along motorways.⁴
• The substantial rules on CO2 emission standards for heavy-duty vehicles are due for revision in 2027.⁴

Every figure above is tied to a cited source that was checked on the day of filing. Found an error? Tell the desk.