The European Union has reversed its planned ban on new internal combustion engine cars from 2035, now allowing their continued sale under strict conditions requiring the use of low-emission renewable fuels.
This decision follows intense pressure from major automakers and European governments, notably Germany.
The new policy stipulates that only vehicles running on synthetic fuels or advanced biofuels will be permitted after the original deadline.
Apostolos Tzitzikostas, the EU’s Commissioner for Sustainable Transport and Tourism, confirmed the shift. He told German business daily Handelsblatt that a letter from German Chancellor Friedrich Merz to European Commission President Ursula von der Leyen was “very well received in Brussels.”
The original ban faced opposition over concerns about underdeveloped electric vehicle charging infrastructure and higher electric vehicle prices. Germany had specifically advocated for synthetic fuels as a way to temper the prohibition.
Examples of compliant fuels include HVO100, made from hydrotreated vegetable oils and animal fats. Automaker BMW already uses HVO100 in some diesel cars manufactured in Germany, reportedly cutting emissions by 90% compared to common diesel.
Synthetic gasoline is another possibility, which can theoretically reduce emissions by 90% compared to conventional gasoline.
Automaker Porsche has been experimenting with “e-fuels” for several years. Since late 2022, the company has produced synthetic fuel in a factory in Chile, using wind energy to process water and carbon dioxide. This production is considered “practically carbon-neutral.”
The European Commission aims to lay the groundwork for an “economically viable and socially just” transition to climate-neutral powertrains.
The Commission is now considering “all technological advances” to reduce emissions, including less polluting combustion engines.
Details on the EU’s “car package” were initially expected on December 10 but have been delayed until the end of the month. Questions remain regarding the future of plug-in hybrids and range-extender models under the revised policy.