EU countries poised to approve 2035 phaseout of CO2-emitting cars

(Reuters, 28 Mar 2023) European Union countries' energy ministers are set to give final approval on Tuesday to the bloc's law to end sales of new CO2-emitting cars in 2035, after Germany won an exemption for cars running on e-fuels.

The vote comes three weeks later than planned after Germany's transport ministry lodged last-minute opposition to the law, threatening to derail the EU's main policy for bringing cars in line with its climate change targets.

The European Commission struck a deal with Germany over the weekend to resolve the row, by offering assurances that combustion engine cars that only run on e-fuels will be exempted from the 2035 ban.

Most countries are likely to back the law on Tuesday, EU officials said, which would allow it to enter into force. Italy and Poland are set to oppose, with Romania and Bulgaria expected to abstain.

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 policy had been expected to make it impossible to sell combustion engine cars in the EU from 2035. But the exemption won by Germany offers a potential lifeline to traditional vehicles - although e-fuels are not yet produced at scale.

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Reuters, 28 Mar 2023: EU countries poised to approve 2035 phaseout of CO2-emitting cars