The EU moved a major climate package forward this morning, marking a significant step toward reducing CO2 emissions and advancing climate neutrality. After a prolonged negotiation that stretched late into the night, environment ministers managed to secure a political agreement on five key proposals within the package. One milestone is the plan to phase out the sale of new combustion engine cars by 2035, a target that remains on track despite concessions aimed at breaking down resistance among some member states. Negotiators now face a window of summer talks with the European Parliament to finalize the deal.
Ministers hailed the outcome as bold and consequential. The environment portfolio holder called it a landmark achievement, describing the package as the most ambitious climate legislation in history and a concrete gain for Europe’s green transition. The Commission’s vice-president echoed the sentiment, emphasizing that meeting the 55 percent emissions reduction target is a critical step consistent with the Green Deal, while noting the increased urgency spurred by recent geopolitical events.
On the agenda last week, the Twenty-Seven reviewed five central elements of the climate package. These include reforms to the emissions trading system, a revised framework for distributing effort among member states, updated rules on greenhouse gas emissions and removals from land use and forestry, new CO2 standards for cars and light commercial vehicles, and the creation of a social climate fund to support vulnerable communities during the transition.
The final agreement preserves the overall targets set by Brussels. The industry will no longer be allowed to sell new petrol or diesel cars, with the same 2035 deadline applying after negotiations. However, several countries suggested delaying the full ban by up to five years, a move that was ultimately not adopted. The rule set a definitive path toward zero-emission vehicles, including electric and hydrogen-powered options, while maintaining a milestone that aligns with the European Parliament’s stance. An interim target remains to cut CO2 emissions from vehicles by 55 percent and to reduce emissions from pickups by 50 percent by 2030. Progress will be reassessed in 2026 to reflect new technology, including hybrids, and to consider the practicality and impact of the transition.
Less money for the fund
The agreement includes a reform of the emissions trading system, which currently covers roughly 11,000 industrial facilities and aviation. The revised plan aims to push emissions down by 61 percent by 2030 relative to 2005 levels and to extend the system to maritime transport, with adjustments for smaller islands and remote regions. There is also a push to cover buildings and transport under the system starting in 2027, putting the mechanism into practice. The overarching aim is to encourage cleaner alternatives, though it faces pushback over potential costs for households and the risk of triggering new social tensions like protest movements seen in some member states.
To address resistance and offset higher costs, a new Social Climate Fund is proposed to assist the most vulnerable countries with their ecological transition and to combat energy poverty. Partly funded through the emissions trading system, the total size of the fund was scaled back from initial recommendations. The final figure sits around 59 billion euros, a compromise that satisfies some northern member states while continuing to pressure others to stretch further. The outcome reflects a balance between ambitious climate action and the political realities of diverse economic conditions across the union.