Germany has struck a deal with the European Union over a groundbreaking regulation requiring new cars to be carbon-neutral by 2035. This settlement resolves a dispute that had the potential to undermine the EU's ambitious plans to reduce greenhouse gas emissions. The agreement allows for e-fuels to be used in a zero-emissions framework, with the EU's rules being technology-neutral.
German Transport Minister Volker Wissing said that this development paves the way for newly registered vehicles with combustion engines that only use CO2-neutral fuels after 2035.
The deal means that Germany can formally approve an agreement reached in October that requires new cars to be zero-emissions, a key pillar in the EU’s plans to reach climate neutrality by 2050. The vote on this regulation, which was expected to take place this month, is now expected to occur on Tuesday.
Environmental activists have criticized Germany’s decision to hold up the emissions plan, arguing that it could distract from progress towards broader use of electric and other zero-emissions vehicles.