EU to Ban Sales of New Vehicles that Emit CO2 by 2035
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EU to Ban Sales of New Vehicles that Emit CO2 by 2035

Photo by:   Kasjan Farbisz
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Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Tue, 03/28/2023 - 15:01

The EU has approved a ban on the sale of new cars that emit CO2 by 2035. The groundbreaking law came after weeks of delay due to last-minute opposition from Germany, which won an exemption for cars running on e-fuels.

The law will also require all new cars sold after 2030 to emit 55% less CO2 compared to 2021 levels. Its aim is to accelerate the decarbonization of new car fleets in the EU, according to Reuters.

The European Commission has pledged to create a legal route for sales of new cars running solely on e-fuels to continue after 2035, after Germany demanded this exemption. This type of energy is a low-carbon liquid fuel that can be used in existing internal combustion engines (ICE) without any considerable modifications. These fuels are produced by combining renewable energy, such as wind or solar power with CO2 emissions captured from the atmosphere.

The exemption won by Germany provides a potential lifeline to traditional vehicles. Many major OEMs such as Porsche and Mazda are heavily investing in this technology, but e-fuels vehicles are not yet produced at scale. Poland voted against the law, while Italy, Bulgaria and Romania abstained. 

E-fuels Propose the Possible Future of ICE Vehicles
Porsche, in collaboration with HIF Global, Siemens Energy, ExxonMobil and other international partners, is investing in e-fuels to increase sustainability. The automaker highlights that factoring currently existing ICE vehicles into decarbonization efforts is essential to meet the automotive industry's ambitious goals, says Karl Dums, Senior Manager, Porsche AG.

“Renewable energy sources are not evenly distributed around the world,” says Dums. He highlights that e-fuels play a critical role in transporting the energy from the region with highest densities to other parts of the world where it can be used.

To this end, Porsche and its partners are building the ‘Haru Oni’ pilot plant in Punta Arenas, Chile, where they plan to take advantage of outstanding local conditions to exploit wind energy to produce e-fuels. Although the automaker recognizes the potential for this type of fuel across industries, it insists that the key to success is its implementation on an industrial scale.

“We have recognized the demand for and, above all, the benefits of e-fuels and had the courage to embark on a new path, to develop a solution, and demonstrate that it is viable,” says Dums. “The important thing now is for other players to pick up the ball and follow in the footsteps of Porsche.”

Photo by:   Kasjan Farbisz

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