BRUSSELS, March 27 (Reuters) – The European Commission will propose a legal route to exempt cars that run on e-fuels from the EU’s 2035 phaseout of new combustion engine cars, according to a document detailing a deal struck with Germany.
The deal reached late on Friday resolves a row that has for weeks delayed the bloc’s main CO2-cutting policy for cars.
Germany’s transport ministry had objected to the EU’s planned law banning sales of new CO2-emitting cars in 2035, demanding an exemption for combustion engine cars that run on e-fuels.
A Commission document seen by Reuters on Monday showed how the EU plans to grant that exemption.
As soon as EU countries approve the 2035 phaseout law, the Commission will present a regulation allowing carmakers to register a new type of vehicle – cars that can only run on carbon-neutral fuels.
The Commission will then present another regulation specifying how these cars can contribute to the 2035 target, the document said.
That would be done through a delegated act – a type of law that is difficult for EU countries and lawmakers to reject, since doing so requires backing from a majority of either.
As an extra reassurance to Germany, the Commission said if this law is rejected, it will “follow another legislative path” to allow e-fuel car sales.
E-fuels are made using captured CO2 emissions and low-carbon hydrogen.
Such fuels are not yet produced at scale, but are seen by some carmakers as a route to prolonging the use of combustion engines.
Germany’s demand was supported by parts of the country’s powerful car industry.
The exemption was criticised by climate campaigners.
“E-fuels are an expensive and massively inefficient diversion from the transformation to electric facing Europe’s carmakers,” said Julia Poliscanova, a senior director at campaign group Transport & Environment.
Berlin’s late opposition came despite EU countries and the European Parliament agreeing a deal on the combustion engine phaseout law last year.
The move has irked some EU diplomats, who say it could embolden governments to block other carefully negotiated deals on climate policies.
EU countries’ ambassadors will vote on Monday on the 2035 combustion engine phaseout law, and discuss the EU-German deal.
If diplomats approve it, EU energy ministers could give final approval to the 2035 law at a meeting in Brussels on Tuesday, allowing it to enter into force.
Reporting by Kate Abnett; editing by Jason Neely
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