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.
binding targets vs incentives
A core cleavage pitted member states favouring binding targets against those preferring incentive-based approaches. Poland, Lithuania, Czechia, Estonia, Slovakia, Bulgaria, Sweden, Romania, and Italy argued for non-regulatory tools, while France, Croatia, and the Netherlands supported binding targets. Germany opposed Article 4 on fiscal competence, and Luxembourg rejected tax incentives, reflecting tensions between EU ambition and national flexibility on fiscal choices.
Decarbonisation vs competitiveness and SME burdens
Many delegations warned of administrative costs for small and medium-sized enterprises, framing the debate as a trade-off between decarbonisation goals and competitiveness. Germany and Italy advocated for biofuels and transitional technologies, pushing back against a narrow electrification focus and arguing for technology neutrality. France and Hungary supported 'made in the EU' provisions, but Greece questioned their workability.
Uneven infrastructure readiness
Poland, Greece, and others cited uneven infrastructure readiness as a reason to oppose uniform targets, arguing that market conditions vary significantly across member states. This divergence underscores the challenge of applying a one-size-fits-all approach to corporate fleet decarbonisation.
Consensus on next steps
Despite the divisions, 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 taken. The file will now proceed to trilogues once the European Parliament adopts its position, expected later this year.