EU Commission working on e-fuel exemption for Germany to get combustion car ban finalized
The saga of getting the EU’s proposed ban on sales of new combustion cars by 2035 continues, and more details are in limbo than ever. Following Germany’s abrupt opposition to the ban ahead of its final vote (a mere formality) last week, the EU Commission has declared plans to include a role for e-fuels in the future with hopes it will be enough to regain Germany’s blessing. Here’s the latest.
The executive arm of the EU appears to be willing to play ball with Germany – a massive automotive market on the continent, which up until recently, was in full support of the commission’s proposed ban on all new internal combustion engine (ICE) car sales by 2035.
European Parliament, the commission, and EU members worked through months of negotiations last year before agreeing to a potentially groundbreaking law which by last October, had been approved by the EU’s 27 member states.
As a result, the parties saw a clear runway headed into the final vote scheduled for last week, a simple formality and the last step in enacting the ICE ban into law. However, German transport minister Volker Wissing suddenly broke from the pack of member states supporting the ban, stating that the proposal in its current iteration does not clearly explain the role CO2-neutral, or “e-fuels,” will play as an alternative to prohibited combustion.
As we reported last week, Germany was still optimistic an approved proposal could ban ICE sales next decade as long as it sees more clarity and exceptions in the potential use of e-fuels. The EU quickly began scrambling to offer provisions that establish how these e-fuels can be used in combustion vehicles after 2035, despite the evidence that their energy production method remains just as wasteful and inefficient as traditional fuels and electric vehicles will inevitably dominate the market.
Now, the EU has offered a declaration to Germany in favor of e-fuel use, but to what scope and when we will see a revised ban proposal remains quite unclear.
Final vote on EU car ban could be postponed to 2024
There’s not huge news to report since Germany backed out of its vow to sign the EU’s combustion car ban into law last week, but the commission intends to at least try and cooperate to get the deal done. As Automotive News Europe points out, the European Union has declared intentions to clarify a potential spot for e-fuels after the combustion ban takes effect in 2035.
The declaration is welcomed news for European automakers like Porsche and Ferrari, which have been two of the more outspoken marques demanding e-fuel guidance. According to a source close to the matter who asked not to be identified, the new declaration would amend the rules of the EU combustion ban so that certain cars that run on e-fuels are permitted.
While the EU has relayed that it is trying to amend the ban and appease Germany – a country vital to the final vote – the wrench thrown before last week’s signing will punt the finalization of the combustion car ban down the road, possibly into 2024. The length of time required to pass revised regulations in Brussels means the member states likely won’t see another vote on the ban until after EU elections next year.
Furthermore, the EU Commission has yet to specify a deadline for when the revised proposal, including e-fuel exemptions, will be delivered. Lastly, it’s still unclear whether the new terms will even be enough to regain Germany’s vote. Germany’s automotive industry currently employs over 800,000 people and contributes to the largest segment of the country’s economy, raking in about $438 billion each year.
Even if the EU’s parliament and Germany agree on permissions for e-fuel usage after the 2035 combustion car ban, the technology itself will need to be developed further to even offer a viable alternative to gas and diesel.
New technologies and fuel additives will need to be successfully integrated in order to achieve carbon neutrality, and it’s hard to imagine many automakers dedicating funds to that R&D as many have begun fully embracing BEV models (Porsche included) as the new future of mobility.
A spokesperson from the German transport ministry confirmed that Volker Wissing was participating in ongoing talks with the EU Commission today and that Germany remains engaged in discussions regarding the use of e-fuels. This story is still ongoing and now looks to remain so through 2023.
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Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):
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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.
Source: CnEVPost, China MIIT
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