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EU holds line on car CO2 goals ahead of US talks

  • : Biofuels, E-fuels, Emissions, Fertilizers
  • 25/08/26

The EU remains committed to the "ultimate objectives" of its car standards regulation, the European Commission said today, as officials from the bloc prepare for detailed talks with the US on vehicle conformity procedures.

The discussions are expected to focus on how cars are tested and certified for regulatory compliance, rather than on the EU's CO2 limits for new vehicles.

A joint statement, issued on 21 August, said the EU and US "intend" to recognise each other's automotive standards. But unlike the EU's recent commitments to purchase energy from the US, any changes to car standards would require amendments to EU legislation.

The European Automobile Manufacturers' Association (ACEA) welcomed the statement, notably confirmation that the US decision will cut tariffs on EU car imports from 27.5pc to 15pc. But it urged the commission to implement the EU's side of the deal "without delay".

The EU's car and van standards set a fleetwide greenhouse gas (GHG) target of 93.6g/km until 2029 — a 15pc cut from 2021 levels. The target tightens to 49.5g/km for 2030–34 (a 55pc reduction), before falling to 0g/km from 2035, effectively phasing out internal combustion engine (ICE) vehicles.

Fuel industry groups are pressing the commission to bring forward a review clause in the CO2 standards to before the end of 2025. Refining association FuelsEurope and biofuels groups Epure, EBB and Ewaba are calling for revised rules that include a carbon correction factor for CO2-neutral fuels and a technology-neutral definition of such fuels.

The commission is currently consulting on CO2 emission standards as part of a review into which fuels could support the "significant ramp-up" needed to achieve the 2035 CO2 vehicle targets. The public consultation ends on 10 October and a commission proposal is expected in the second quarter of 2026.

Earlier this year, the EU approved amendments allowing manufacturers to average emissions over a three-year period — 2025 to 2027 — instead of meeting annual compliance. This gives carmakers more flexibility to manage excess emissions across model years.


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