Germany and EU strike landmark deal on phasing out fossil fuel cars

The European Union and Germany, on Saturday (March 25), struck a deal which would decide the future use of combustion engines, said officials. In line with the agreement, a planned phaseout on the sale of cars using fossil fuels will take place by 2035. However, it also allowed some combustion engines beyond the 2035 mark, a move which has since drawn condemnation from the prominent environmental group, Greenpeace.

The deal also ends the dispute between Berlin and Brussels over the manufacturing of cars which use so-called e-fuels. This comes as Berlin wanted assurances that new combustion engine cars can be sold beyond the deadline if they run on e-fuels. In line with this, the Germany and EU have decided that they would allow cars to be registered after that date, providing that any fuel they use is exclusively carbon neutral, as per media reports.

“We have found an agreement with Germany on the future use of e-fuels in cars,”EU Commission Vice President Frans Timmermans wrote on Twitter. He added, “We will work now on getting the CO2 standards for cars regulation adopted as soon as possible, and the Commission will follow up swiftly with the necessary legal steps.”

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Meanwhile, German Transport Minister Volker Wissing had also taken to the microblogging platform and said that “the way is clear” after the agreement was reached, late Friday. He added, “Vehicles with internal combustion engines can still be newly registered after 2035 if they fill up exclusively with CO2-neutral fuels.”

The EU diplomats are yet to vote on the formal approval of the 2035 phase-out law. Sweden, which currently holds the EU’s rotating presidency, said that the voting will take place on Monday.

The landmark deal will prohibit new sales of fossil fuel cars from 2035, however, in an unprecedented move earlier this month a leading car producer blocked the agreement at the last minute after it had been approved through the EU’s legislative process, reported AFP.

“This stinky compromise undermines climate protection in transport, and it harms Europe,” said Benjamin Stephan of Greenpeace, as per Reuters. He addedthat it dilutes the needed focus of the auto industry on efficient electromobility.

The development of the synthetic fuels that Berlin had sought an exemption for, is said to be produced using low-carbon electricity but the technology remains unproven. While German manufacturers hope it will lead to the extended use of combustion engines, Environmental NGOs have disputed its value to the transition towards clean energy sources and said that it is expensive, polluting and energy-intensive.

(With inputs from agencies)