The lack of availability of charging stations is often cited as a major barrier to electric vehicle (EV) rollout. Yet charging points are just the “tip of the iceberg”—the power system needs fundamental reforms to maximize the benefits of EV integration. The European Commission’s plan to revise carbon dioxide emissions standards for light-duty vehicles (LDV) represents an opportunity to more thoroughly consider such reforms. Greater policy coordination between EV rules and the wider regulation of the electricity system could help Europe to more quickly achieve multiple policy goals—lowering emissions, improving competitiveness, and enhancing quality of life. An optimal regulatory mechanism will be a consistent set of binding LDV CO2 reduction standards covering both the near and longer term, complemented with a quota for ultra-low-emission vehicles that could be made a tradable instrument.