Following the recent agreement by the European Union to achieve carbon neutrality in cars by 2035, Volkswagen AG has stated that the deal on e-fuels will benefit special cases, such as low-volume models like Porsche's 911 sports car and emergency vehicles. The automaker, which is Europe's largest, remains committed to electrifying its lineup and aims to have EVs make up around 10% of sales this year and 60% by the end of the decade, according to a statement released on Monday. Volkswagen believes that e-fuels will be a helpful addition to its existing fleet of combustion engines and will be particularly beneficial for specialized applications. The company sees e-fuels made from renewable energy sources as a contribution to sustainable mobility and believes that the recent agreement will provide manufacturers and consumers with a clear perspective for planning. The law is set for a vote on Tuesday, following Germany's agreement with the EU over the weekend.
The European Union's recent deal allows Germany to formally approve an agreement made in October, which requires new cars to be zero-emissions. This agreement is a crucial element in the EU's efforts to achieve climate neutrality by 2050. A vote on this matter was postponed earlier this month due to objections from the pro-business FDP party, the junior member of Chancellor Olaf Scholz's governing coalition. Germany's VDA car lobby has expressed its support for the deal, which permits the use of various technologies to reduce CO2 emissions, but highlights the significant challenges that must be overcome to scale up production. The lobby group believes that e-fuel output must be enabled at a larger scale and competitive prices, which requires several strategic decisions and stable energy partnerships between Brussels and Berlin with other countries that possess ideal conditions to produce e-fuels.
Volkswagen's subsidiary, Porsche AG, is spearheading the company's efforts on synthetic fuels, including a pilot plant in Chile. Porsche does not intend to produce its profitable 911 model with a plug. Last year, Volkswagen and Porsche's CEO Oliver Blume faced criticism for boasting at an internal event about successfully lobbying for e-fuels to be included in the new German government's coalition agreement.