Commission’s Automotive Package supports automotive industry’s competitiveness

On 16 December 2025, the European Commission published the Automotive Package to promote the automotive industry’s competitiveness and support the transition to clean vehicles. The package includes several legislative proposals.

The Automotive package includes proposals for amending the EU Regulation on the CO2 emissions standards for passenger cars, vans and heavy-duty vehicles, updating the regulation on the energy labelling of vehicles, a Regulation on Green Corporate Fleets, as well as measures streamlining regulation on vehicles (the Automotive Omnibus). In addition, the Commission issued a proposal for an investment package for the battery industry (the Battery Booster).

More flexible CO2 emissions reduction targets for vehicles

In accordance with the EU Regulation on CO2 emissions standards, every vehicle manufacturer must ensure that the average CO2 emissions of vehicles first registered in the EU in any given year does not exceed the EU’s annual emissions targets (the CO2 limit value).

The Commission is now proposing a change to the CO2 emissions standards target for passenger cars and vans for 2035, which would be reduced to 90% from the current 100%. This would also allow first registrations of new combustion engine vehicles in the EU after 2035, in addition to zero-emission full electric vehicles and hydrogen vehicles. The remaining 10% of the emissions will need to be compensated through mechanisms to be included in the Regulation.

Additionally, the 2030 CO2 emissions target for vans would be reduced from 50% to 40%. The Commission is also proposing a targeted amendment to the CO2 emission standards for heavy-duty vehicles, with flexibility easing the compliance with the 2030 targets.

Moreover, the Commission is proposing energy labelling for vehicles. The energy labelling would ensure that consumers received sufficient and clear information about the energy efficiency and emissions of both new and pre-owned vehicles. The energy labelling would also include information about the electricity consumption and range of electric vehicles.

Cleaner corporate fleets

The proposed regulation concerning cleaner corporate vehicles (Green Corporate Fleets) aims to promote the uptake of zero- and low-emission passenger cars and vans in large companies’ fleets. The objective is to support the EU’s efforts in the transition to clean mobility.

According to the proposal, Member States must ensure that as of 2030, a certain share of large companies’ new passenger cars and vans are low- or zero-emission vehicles. The targets will be set for the Member States. The proposal targets corporate vehicles because they account for a considerable share of all new vehicles. At the same time, corporate vehicles may boost the market for clean mobility and the competitiveness of the EU’s automotive industry.

Easing technical legislation

As part of the Automotive Package, the Commission issued an omnibus to streamline legislation on the technical requirements for vehicles. The goal is to ease the administrative burden and cut costs for the automotive industry and boost the EU’s competitiveness.

The omnibus includes measures that would ease the requirements concerning the use of driver’s log devices and speed limiters in electric vans, as well as streamlining the Euro 7 emissions regulation and noise regulation on vehicle manufacturers by eliminating overlaps. Additionally, the proposed measures would improve the consistency of vehicles’ consumption and emissions data at the EU level. A new vehicle category under the Small Affordable Cars initiative would also be introduced to the market.

What’s next?

Finland will establish its opinion on the Commission’s proposals. Stakeholders will be heard as part of this process. In the EU, the work will continue by Member States and the European Parliament establishing their views on the Commission’s proposals.

Inquiries:

Sara Österberg, Senior Specialist, tel. 0295 342 041, [email protected] (CO2 emissions standards)

Anu Aavamäki-Tortosa, Senior Specialist, tel. 0295 342 026, [email protected] (corporate vehicles)

Veli-Matti Syrjänen, Senior Ministerial Adviser, tel. 0295 342 124, [email protected] (streamlined vehicle legislation)