The European automotive industry is calling for a series of exemptions to the EU’s car CO₂ regulation that could significantly reduce the bloc’s ambition to sell only zero-emission vehicles by 2035, according to analysis by campaign group Transport & Environment (T&E) of a leaked position paper from the European Automobile Manufacturers’ Association (ACEA).

The document reportedly outlines more than ten proposed loopholes, including provisions to count vehicles powered by so-called carbon-neutral fuels as zero-emission. It also calls on the European Commission to suspend work to update how emissions from plug-in hybrid vehicles are measured.

According to T&E, ACEA’s proposals would have a cumulative impact that effectively lowers the required market share of electric vehicles (EVs) to 52% in 2035. The group’s analysis suggests that counting cars using e-fuels or biofuels as zero-emission could reduce EV sales by around a quarter.

ACEA is also said to support removing the 2027 “utility factor” for plug-in hybrids, which determines how much of their mileage is powered by electricity. This change, T&E claims, would lower electric car sales by 10%. Other measures, such as granting CO₂ credits for scrapping older vehicles or for emissions reductions in production processes, could further reduce the ambition of the regulation.

Lucien Mathieu, cars director at T&E, said the proposals would “undermine the investment certainty” needed for Europe’s transition to EVs, describing the approach as a “cynical attempt to dismantle a central pillar of Europe’s climate law.”

ACEA’s position comes as the European Commission prepares to review the car CO₂ legislation. Commission president Ursula von der Leyen has indicated that a legislative proposal is expected by the end of 2025.

Mathieu added that manufacturers were “calling for a drastic acceleration of the review” but “asking for a shopping list of flexibilities and loopholes” without allowing sufficient time for evaluation.

Neither ACEA nor the European Commission has yet publicly commented on the leaked document.

"European carmakers seek flexibility in 2035 zero-emission targets" was originally created and published by Motor Finance Online, a GlobalData owned brand.

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