What’s happening: The European Commission has developed a proposal to permit the sale of new vehicles featuring internal combustion engines beyond the year 2035. However, such vehicles would only be allowed to operate on climate-neutral e-fuels. This plan aims to settle a dispute with Germany concerning the elimination of combustion engine cars.
More info: According to a document reviewed by Reuters, the preliminary suggestion proposes establishing a new vehicle classification within the European Union for cars that exclusively rely on carbon-neutral fuels. The draft also specifies that such vehicles must incorporate technology that prevents them from operating if any other fuel is utilized.
Key Points:
- E-fuels are fuels that are produced using electricity from renewable sources such as solar or wind, as well as capturing atmospheric CO2. They can be used in conventional combustion engines.
- The draft proposal will allow for the sale of new cars with internal combustion engines if they use e-fuels.
- That would force carmakers to develop internal combustion engines that can run only on e-fuels
- An EU official told Reuters that any proposal on registering e-fuel cars would only be made after the combustion engine phaseout law was finally adopted.
Bottom Line: Last week, reports emerged that Germany, along with six other European countries, had joined forces to oppose the proposed legislation, which was scheduled for a final vote this month. The European Commission had previously endorsed the ban on combustion engine vehicles at every opportunity last year. However, in March, Germany expressed concerns regarding potential job losses and requested assurances that future vehicles powered by internal combustion engines could use e-fuels.
The Commission and German authorities are trying to reach an agreement by the EU’s next summit on Thursday.
Source: Reuters
