EU softens 2035 car emissions path, opens room for hybrids and e-fuels

The EU's new compromise on car emission requirements eases the trajectory to 2035, allowing more plug-in hybrids, fossil-free fuels, and industrial policy exemptions. Key decisions remain on the stringency of the transition and who bears the cost of a weakened climate line, signaling a potential policy shift with market implications for automakers and fuel suppliers.