EU to Ban Internal Combustion Vehicles by 2035, Except for Germany's Synthetic Fuel

Strategic Insights -

The European Union is set to impose a ban on internal combustion vehicles by 2035, with Germany being granted an exception to produce cars running on synthetic fuel. The decision was made by the Committee of Permanent Representatives (Coreper) on March 25, following an agreement between the European Commission and Germany, which had previously blocked the consensus. The ban will prohibit the sale of new cars that run on gasoline, diesel fuel, and hybrids after 2035, except for those that use synthetic fuel, which is expected to be produced using green hydrogen or gas emissions from industrial facilities with CO2 extraction.

Key Takeaways:

  • The EU will ban the sale of new cars with internal combustion engines by 2035, except for those that run on synthetic fuel.
  • Germany, the largest European car manufacturer, has been granted an exception to produce cars on synthetic fuel, which is expected to be produced using green hydrogen or gas emissions from industrial facilities.
  • The ban is part of the European regulation to reduce CO2 emissions from new cars, which will oblige manufacturers to produce new cars without emitting CO2.
  • Italian automakers have also supported Germany's position, which was initially resisted by the European Commission.
  • The decision was made by the Committee of Permanent Representatives (Coreper) on March 25, following an agreement between the European Commission and Germany.
  • The ban is expected to encourage the production and adoption of electric cars, which will replace internal combustion vehicles.

Statistics:

  • The EU will ban the sale of new cars with internal combustion engines by 2035.
  • Germany will produce cars on synthetic fuel, which is expected to be produced using green hydrogen or gas emissions from industrial facilities.
  • The ban is expected to reduce CO2 emissions from new cars to zero.
  • The production of electric cars is expected to increase greatly in the coming years.

Sources:

  • Interfax
  • European Commission (EC)
  • Swedish Presidency of the Council of the EU