EU Tries to Find Middle Ground with Vehicles that Run Only On E-Fuels

The European Commission seeks to create a new vehicle category that’s somewhere between internal combustion engine (ICE) cars and electric vehicles to buy time as it resolves a negotiation with Germany on phasing out combustion engine vehicles.

The commission seeks to allow sales of new ICE cars after 2035 provided that they run only on carbon-neutral or e-fuels and be equipped with technology that would prevent the engine from running when another type of fuel is used, according to a draft proposal seen by Reuters on Tuesday.

E-fuels, which aren’t currently produced at scale, are created through a synthesis of captured CO2 emissions and hydrogen from CO2-free electricity.

Last year, EU countries and the European Parliament agreed on passing a law to begin phasing out ICE vehicles by 2035 after months of negotiations. Germany’s Transport Ministry surprised the bloc when it submitted last-minute objections to the law, just days before the final vote to enforce the law.

Germany’s Transport Ministry’s main demand is that the EU continues to allow sales of new combustion cars in the new e-fuel category after 2035, but the Commission’s condition of adding technology that would recognize e-fuels from fossil fuels might prove problematic as it would mean that carmakers would need to develop new engines to include that capability. 

Sources familiar with the matter told Reuters that Transport Minister Volker Wissing was not interested in rejecting the Commission’s proposal, instead, they would like to make some improvements to it. Talks are ongoing between the Ministry and the Commission, and they are targeting to secure an agreement by the EU summit on Thursday.

According to an EU official, the combustion engine phaseout law beginning in 2035 must first be adopted before any proposal for registering e-fuel engines is made.


Information for this briefing was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why the Market May Be Misreading Iran | David Woo

Why US Fertilizer Supply Could Matter a Lot More Now | Pat Varas – Sage Potash

Roscan Gold: Mali Discount Hits Kandiole PEA

Recommended

First Majestic Tracking Ahead Of Guidance Following Q1 Production Results

Canadian Gold Drills 19.5 g/t Gold Over 1.0 Metre At Lac Arsenault

Related News

Bailout Signs: Uniper Draws From Winter Storage, Applies For €2-Billion Credit Line Extension

German energy giant Uniper seems to be doing everything short of implementing the bailout themselves...

Monday, July 18, 2022, 02:50:00 PM

Volkswagen’s Factory Shutdowns & Layoffs Signal Trouble Ahead for Germany’s Economy

Volkswagen has announced plans to shut down at least three of its factories in Germany...

Monday, October 28, 2024, 12:19:00 PM

Iceland to Decide on EU Membership in Landmark Vote by 2027

Iceland’s political landscape has shifted significantly with the formation of a new government under Prime...

Thursday, December 26, 2024, 07:44:00 AM

Fears Of European Economic Slowdown May Have Been A Key Impetus For The Soaring Equity Markets In July

In July, many stock markets posted their best monthly results since November 2020, and in...

Monday, August 1, 2022, 09:00:00 AM

Germany Sounds Alarm as Trump Border Policies Impact Its Traveling Citizens

Germany is monitoring the treatment of its citizens entering the United States after three nationals...

Tuesday, March 18, 2025, 03:47:00 PM