EU Countries Approve 2035 Phase-Out Of CO2-emitting Cars

• European Union countries gave final approval on Tuesday to a landmark law to end sales of new CO2-emitting cars in 2035, after Germany won an exemption for cars running on e-fuels. The approval from EU countries' energy ministers means Europe's main climate policy for cars can now enter into force - after weeks of delay caused by last-minute opposition from Germany.
• The EU law will require all new cars sold to have zero CO2 emissions from 2035, and 55% lower CO2 emissions from 2030, versus 2021 levels. The targets are designed to drive the rapid decarbonization of new car fleets in Europe.
• The European Commission has pledged, however, to create a legal route for sales of new cars that only run on e-fuels to continue after 2035, after Germany demanded this exemption.
• The EU policy had been expected to make it impossible to sell combustion engine cars in the EU from 2035. However, the exemption won by Germany offers a potential lifeline to traditional vehicles - although e-fuels are not yet produced at scale. E-fuels are considered carbon neutral because they are made using captured CO2 emissions - which proponents say balances out the CO2 released when the fuel is combusted in an engine.
• Germany's late intervention, after EU countries and lawmakers had already agreed to the 2035 phaseout last year, irked some EU diplomats, and stoked concerns that governments may try to block other carefully-negotiated deals on climate policies.

(Source: Reuters)