The Transport, Telecommunications and Energy Council on 8 June 2026 debated the proposed regulation on clean corporate vehicles, with the Cypriot Presidency highlighting deep divisions over binding national targets for zero- and low-emission vehicles registered by large undertakings. European Commissioner for Transport Apostolos Tzitzikostas linked the file to the wider automotive package, including CO2 standards and the Industrial Accelerator Act, and expressed hope for a compromise after summer.
Key disputes emerged along several axes. On binding targets versus incentive-based approaches, Poland, Lithuania, Czechia, Estonia, Slovakia, Bulgaria, Sweden, Romania, and Italy favoured non-regulatory tools, while France, Croatia, and the Netherlands supported binding targets. Germany opposed Article 4 on fiscal competence, arguing that national tax choices should remain outside EU scope, while Luxembourg rejected tax incentives altogether. Many delegations warned of administrative costs for small and medium-sized enterprises, pitting decarbonisation goals against competitiveness concerns. On technology, Germany and Italy advocated for biofuels and transitional technologies, pushing back against an exclusive electrification focus. Industrial policy and 'made in the EU' provisions, supported by France and Hungary, were questioned by Greece on workability. Poland, Greece, and others cited uneven infrastructure readiness as a barrier to uniform targets.
Despite the splits, consensus emerged on the overarching decarbonisation goals, the need to assess the file alongside related legislation, avoiding SME burdens, and further work under the incoming Irish Presidency. The Council took note of the progress report, with no formal decision expected until after summer negotiations.
The debate exposed a moderate-to-substantial divide between member states favouring binding EU-level targets and those insisting on national flexibility, with centre groups pulling in opposite directions. The outcome will affect large corporate fleets, automotive manufacturers, and national transport ministries, balancing regulatory push against market readiness and fiscal sovereignty.