Stepping Back Amid Germany's Last-Minute Opposition
The European Union (EU) will effectively ban the sale of internal combustion engine vehicles using gasoline or diesel within the region starting in 2035. However, it has left the door open for the sale of internal combustion engine vehicles powered by synthetic fuels (e-fuel), which can reduce carbon emissions.
The Transport, Telecommunications and Energy Council (hereinafter the Energy Council), a ministerial-level council of the 27 EU member states, announced on the 28th (local time) that it has finalized new regulations that completely ban carbon dioxide emissions from new passenger cars and vans sold within the region starting in 2035.
According to these regulations, new cars sold within the EU from 2030 to 2034 must reduce carbon dioxide emissions by 55% for passenger cars and 50% for vans compared to 2021 levels.
From 2035 onwards, carbon dioxide emissions from new passenger cars and vans will be completely banned. However, in response to Germany's request, an exception has been made to allow the continued sale of internal combustion engine vehicles powered by e-fuel after 2035. E-fuel is a fuel currently in development that significantly reduces carbon emissions while allowing existing internal combustion engines to be maintained. The industry has continuously argued that even if internal combustion engine vehicles are phased out, the option to sell e-fuel internal combustion engine vehicles should remain open.
This regulation adoption is seen as a signal marking the end of internal combustion engine vehicles, which account for about 25% of the EU's carbon emissions, while at the same time, the allowance of e-fuel sales is interpreted as a victory for Germany, reflecting this background.
Typically, new EU legislation undergoes trilateral negotiations among the executive branch, the European Commission, the Council composed of the 27 member states, and the European Parliament. Afterward, it is adopted separately by the European Parliament and the EU Council, confirming its implementation.
Initially, this regulation was also expected to be adopted by the European Parliament last month after trilateral negotiations, leaving only the EU Council vote. However, the Council vote was delayed for several weeks as Germany requested last-minute amendments.
As Germany, the most populous EU country, publicly hinted at a possible veto and other countries such as Italy and Poland expressed negative positions, the final vote was at risk of being canceled, prompting the European Commission to step back.
Going forward, the European Commission is expected to include strict requirements in related follow-up legislation to ensure the contribution of e-fuel vehicles to carbon dioxide reduction.
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