The European Commission is to propose a legal route to exempt vehicles that run on electrofuels (e-fuels) from the EU’s 2035 phaseout of new combustion engine vehicles, a document detailing a deal struck with Germany showed.
The deal, reached late on Friday, resolves a row that has for weeks delayed the bloc’s main carbon-cutting policy for vehicles.
Germany’s transportation ministry had objected to the EU’s planned law banning sales of new carbon-emitting vehicles in 2035, demanding an exemption for combustion engine vehicles that run on e-fuels.
Photo: AFP
A commission document seen by Reuters yesterday showed how the EU plans to grant that exemption.
As soon as EU countries approve the 2035 phaseout law, the commission is to present a regulation allowing automakers to register a new type of vehicle that can only run on carbon-neutral fuels.
The commission is then to present another regulation specifying how these vehicles can contribute to the 2035 target, the document said.
That would be done through a delegated act — a type of law that is difficult for EU countries and lawmakers to reject, as doing so requires backing from a majority of either.
As an extra reassurance to Germany, the commission said that if this law is rejected, it would “follow another legislative path” to allow e-fuel vehicle sales.
E-fuels are made using captured carbon emissions and low-carbon hydrogen.
Such fuels are not yet produced at scale, but are seen by some automakers as a route to prolonging the use of combustion engines.
Germany’s demand was supported by parts of the country’s powerful auto industry.
The exemption was criticized by climate campaigners.
“E-fuels are an expensive and massively inefficient diversion from the transformation to electric facing Europe’s carmakers,” said Julia Poliscanova, a senior director of vehicles and e-mobility at campaign group Transport & Environment.
Berlin’s late opposition came despite EU countries and the European Parliament agreeing to a deal on the combustion engine phaseout law last year.
The move has irked some EU diplomats, who say it could embolden governments to block other carefully negotiated deals on climate policies.
EU countries’ ambassadors were yesterday to vote on the 2035 combustion engine phaseout law, and discuss the EU-German deal.
If diplomats approve it, EU energy ministers could give final approval to the 2035 law at a meeting in Brussels today, allowing it to enter into force.
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