The EU's planned phase-out of new internal combustion engine (ICE) vehicles by 2035 is "history", German chancellor Friedrich Merz said today, citing a new Franco-German agreement on future CO2 standards for cars.
A draft text of the German-French proposals circulating would retain the EU's 2035 target of a 90pc reduction in CO2 emissions without offsetting, while allowing greater use of renewable fuels. The text indicates support for a new category of zero-emission vehicles powered by renewable fuels of non-biological origin (RFNBOs), sustainable EU-produced biofuels and biogas from advanced feedstocks, waste and residues listed in Parts A and B of Annex IX.
"We would also enable the use of biofuels as a means of achieving carbon neutrality," Merz said, arguing that technological neutrality is needed to achieve net-zero CO2 emissions.
Merz said the agreement has backing from other member states, but needs to pass the EU legislative process.
The proposal was criticised by German Green MEP Michael Bloss, the group's negotiator on car CO2 standards.
"Just when many people want to buy an electric car, a further weakening of EU rules creates uncertainty and hesitation," Bloss said. "China has already gone electric, and that is precisely where European manufacturers are losing substantial market share."
German EPP MEP Peter Liese welcomed the proposal, saying scrapping the ban on ICE cars can be done "without missing our climate targets." Use of "climate-friendly" fuels such as E20 should be expanded, he said.
Liese backed the creation of a dedicated vehicle category for climate-friendly fuels, including e-fuels. He said there is broad support in the European Parliament for the European Commission's proposal to allow 7pc green steel to count towards compliance targets.
Industry group European Biodiesel Board (EBB) welcomed the agreement but wants clarity on fuels eligibility.
"Leaving out any RED-compliant feedstocks would hamper solutions that are already contributing to decarbonisation," said EBB secretary general Xavier Noyon.
