EU bends to Germany’s demands, proposes separate e-fuels category in 2035 combustion ban

According to a draft proposal recently seen by the media, the European Commission has reportedly added an amendment to its 2035 combustion vehicle ban that allows for the sale of internal combustion engine (ICE) vehicles after the expiry, as long as they run entirely on climate-neutral e-fuels. This move is the latest chapter in a saga to ban ICE vehicles in the EU that has recently been stifled by countries insisting on the additional e-fuel exceptions, led by automotive juggernaut, Germany.

March has been a busy and newsworthy month for the EU Commission and its ongoing quest to enact a complete ban on combustion vehicles by 2035. Throughout 2022, European Parliament, the commission, and EU members had been working through months of negotiations before finally agreeing to implement a law that would ban the sale of new combustion vehicles throughout the EU by 2035.

By last October, the ban had actually been approved by the EU’s 27 member states, including Germany. However, as the EU prepared for its final vote earlier this month, a mere formality in the legal process, Germany and its transport minister, Volker Wissing, suddenly had a change of heart, rescinding the country’s vote of confidence until further changes pertaining to e-fuels were established.

This surprising reversal sent the EU scrambling as Germany’s vote is vital to the 2035 ban’s implementation. German automakers like Porsche suddenly spoke out against the ban in its current iteration, demanding that additional exceptions be added for combustion vehicles running on carbon-neutral e-fuels.

Mere weeks after publicly declaring its distaste for the 2035 ban without e-fuel exceptions, Germany gained several EU allies, including Italy, the Czech Republic, and Poland. According to a recent report, the EU appears to be bowing to the wishes of its vocal member states and has drafted a revised proposal to the 2035 combustion ban to appease them. Here’s the latest.

2035 combustion ban may include new category for e-fuels

According to an exclusive report from Reuters, its team has gotten eyes on a drafted proposal that would include exceptions for the sale of combustion vehicles after the 2035 ban, as long as they run entirely on e-fuels and not gasoline or diesel.

To truly prevent any and all usage of carbon-emitting fuels in new vehicles after the ban, the draft states that e-fuel cars would be required to come equipped with technology that would prevent them from operating if any other fuels are used.

Two sources familiar with the discussions between the EU Commission and Germany state that the revised proposal suggesting new combustion vehicles must be able to distinguish between carbon-neutral and traditional fuels remains a problematic situation because automakers will need to develop new engines to do so.

Germany’s Transport Ministry said it is in contact with the commission to reach a solution. Although the transport minister and face of Germany’s deviation from the 2035 ban, Volker Wissing, does not support the EU’s proposed amendments for e-fuels, he is not completely rejecting it. Sources say Wissing instead intends to make improvements to it in hopes of securing an agreement that appeases all member states before this Thursday’s EU summit.

Good or bad, we are sure to hear more later this week as talks continue. Check back soon.