EU lawmakers reach deal to weaken car CO2 targets

By Philip Blenkinsop

BRUSSELS, Oct 20 (Reuters) - European Union lawmakers have agreed to weaken proposed EU car emissions targets for 2035, allowing automakers to make up some of the expected shortfall by using low-carbon EU steel, according to a text of the agreement seen by Reuters.

The European Commission proposed last year that automakers cut CO2 emissions by 90% from 2021 levels in 2035, down from an earlier target of 100%. The EU executive said the remaining 10% could be offset through use of low-carbon steel and alternative fuels.

The deal among three mainstream party groups in the European Parliament sets instead a target of an 87.5% cut for cars, with a 7.5% top-up from production using low-carbon steel made in the European Union.

The agreement still needs to be signed off by the groups - the centre-right European People's Party, the centre-left Social Democrats and the more centrist Renew - to establish the position of the European Parliament.

EU CLIMATE AMBITION HAS WEAKENED

The parliament and EU governments would then have to agree on a common text on emissions targets for new car fleets for 2030 and 2035. 

EU countries have long championed efforts to reduce carbon emissions to try to curb global warming, but economic considerations have in recent years led to a scaling back of ambition.

France and Germany, which both have very significant car industries, last week agreed to reduce the CO2 emissions targets for cars in 2035 to 90%, with no need for compensatory measures.

According to the text of the deal struck early on Tuesday, the parliament groups agreed that automakers should cut average emissions of new vans by 80% in 2035.

For 2030, the proposed CO2 reduction targets would be 55% for cars, as the Commission put forward last year, and 35% for vans, down from the Commission's 40%.

Automakers would be able to meet the 2030 targets over the average for the years 2029 to 2031.

Cars running on renewable fuels could also be recognised as zero-emission vehicles. Small affordable electric cars and particularly efficient EVs could earn producers super-credits, helping them meet the emissions targets.

(Reporting by Philip Blenkinsop; editing by Barbara Lewis)