EU Already Caving On Their 2035 Combustion Engine Ban, Considering Allowing E-Fuel Vehicles

It appears the EU could already be giving up ground on its proposed internal combustion engine ban, set to be put into place in 2035.

On Tuesday morning it was reported that the EU has now “drafted a plan allowing sales of new cars with internal combustion engines that run only on climate neutral e-fuels”, according to Reuters. The plan comes as part of a compromise proposal with Germany over the existing 2035 ban plans.

Under the plan, cars that run on carbon neutral fuels would be placed into a new type of vehicle category.

E-fuels are synthetically made fuels that can be made using hydrogen in conjunction with captured carbon dioxide or carbon monoxide. The source for the components of the fuels generally has to be sustainable in nature, such as wind or solar power.

The plan proposes including a “fuelling inducement system”, which would ostensibly prevent vehicles from starting if they aren’t running on carbon neutral fuels. We’re sure that won’t be cost prohibitive at all…

But most importantly, the legislation would allow legacy auto manufacturers to keep selling combustion engines after the 2035 proposed ban date, perhaps offering some relief for companies in the midst of transitioning their business models.

Reuters wrote:

After months of negotiations, EU countries and the European Parliament agreed the law last year. But Germany’s Transport Ministry surprised other countries this month by lodging last-minute objections to the law, days before a final vote that would have seen it enter into force.

The Ministry’s core demand is that the EU allow sales of new cars running on e-fuels after 2035. The Ministry was not immediately available for comment.

A Commission spokesperson declined to comment on the draft document, but referred to comments by EU climate policy chief Frans Timmermans, who said last week any solution must comply with the 2035 phaseout law agreed last year.

Recall, just yesterday we wrote about how the switch to EVs for major manufacturers was casting a wet blanket over demand for some manufacturers in China.

Companies like Porsche and Honda are already working on vehicles that use synthetic fuels.