The EU should create a new category of vehicles powered by eligible zero-carbon fuels from 2030, under an informal deal agreed by the European Parliament's largest political groups. The proposals, which would allow certain new biofuel-powered vehicles in addition to e-fuel vehicles, seeks to amend the bloc's existing CO2 standards for cars.
If enacted, the agreement would define eligible fuels until the end of 2032 as all fuels covered by the renewable energy directive that achieve at least 65pc greenhouse gas (GHG) savings.
From 2033, eligible fuels for new cars would be limited to renewable fuels of non-biological origin (RFNBOs), along with biofuels and biogas produced from advanced and waste feedstocks listed in Annex IX Parts A and B of the renewable energy directive.
Current EU legislation sets fleet-wide CO2 emissions targets for new passenger cars and vans at 93.6g/km through 2029, equivalent to a 15pc reduction from the 2021 baseline for cars. The European Commission has proposed replacing the current 100pc reduction target from 2035, effectively requiring 0g/km emissions, with a 90pc reduction target.
"The phase-out of the internal combustion engine is now off the table," said Manfred Weber, chair of Parliament's largest group, the European People's Party (EPP). "At the same time, we remain committed to combining effective and ambitious climate protection with a competitive industry," Weber added.
The EPP, together with Renew and the Socialists and Democrats (S&D) want GHG emissions from new cars cut by 87.5pc from 2035. Under the proposal, 7.5 percentage points of the reduction would come from green steel, while 5 percentage points would be unconditional. The deal also foresees 3 percentage points of reductions from low-carbon steel produced in Europe, rising to 7 percentage points from 2035.
The agreement between lawmakers follows German-French proposals to retain a 90pc reduction target for CO2 emissions from new cars from 2035, while creating a new vehicle category powered by RFNBOs or EU-produced sustainable biofuels and biogas derived from advanced feedstocks, waste and residues.
German Green MEP Michael Bloss criticised the lawmakers' proposal for treating crop-based biofuel-powered cars as climate-neutral until 2032.
"Even after 2035, one in eight new cars will still be allowed to have a combustion engine, with a large proportion of these offset against green steel, which already counts towards emissions trading targets," Bloss said.
European renewable ethanol association ePure said the proposed two-year eligibility period for vehicles running exclusively on sustainable biofuels amounts to little more than "window dressing".
"It is far too short to provide the investment certainty needed or to justify the significant logistical adjustments required throughout the value chain," ePure secretary-general Laurent Donceel said.
