Germany’s Transport Minister, Volker Wissing, expressed optimism on Monday that the European Union’s (EU) plan to phase out combustion engines could be resolved.
Despite the hurdles encountered by the proposed ban, both sides are in constructive talks. They are consulting with countries to find agreement on the law.
EU’s intent to prohibit internal combustion engines in new vehicles
The EU’s ambitious plan to ban new cars with internal combustion engines by 2035 aims at reducing the transport sector’s carbon emissions. It accounts for a significant proportion of the EU’s greenhouse gas emissions. However, Germany’s transport minister wants the use of synthetic fuels. He wants them to remain an option even after the 2035 deadline.
Wissing’s call for the continued use of synthetic fuels is not unwarranted, as electric cars alone may not be sufficient to achieve the EU’s climate targets. Synthetic fuels are made from renewable sources and could provide a more sustainable alternative to fossil fuels. The minister has said that the Commission’s promised proposal on how to make the use of synthetic fuels possible beyond 2035 is still missing.
The EU countries were due to hold their final vote on the law on Friday, but the vote was canceled, and as of Monday morning, it had not been rescheduled. Wissing, in reference to the postponed vote, stated that the matter did not require resolution within a week. Sweden, the current rotating EU presidency, and the European Commission are both holding talks with nations. They make an effort to reach a consensus on the bill. EU’s response to US green subsidies and e-fuels impasse
No excuse to limit combustion engines
During her visit to the German cabinet, EU Commission President, Ursula von der Leyen, said she is determined to counter challenges from U.S. subsidies. She thought about U.S. subsidies for green technologies. She announced speeding up the currently blocked law on phasing out combustion engines from 2035. European electric carmakers have been given access to U.S. tax advantages. Still, the EU needs to ensure they also benefit in the batteries and battery component segments. Here more talks are needed with Washington.
The EU is also considering legislative action to unleash European aid and funds. Those are ones that have not been used for the green transition at home. A concurrently due report from the Commission on competitiveness would assist in removing obstacles from the EU’s internal market. Also, it will address the shortage of skilled workers that von der Leyen referred to as a growth inhibitor.
Trade agreements with various countries
The EU is seeking trade deals with Australia, Mexico, and the Latin American Mercosur bloc by the end of 2023, von der Leyen said. She also said that trade agreements with India and Indonesia were being considered.
According to Von von Leyen, the EU closely monitors whether China honors agreements to refrain from arming Russia in the Ukraine conflict. We are keeping an eye on this, she said.
The EU’s plan to phase out combustion engines by 2035 is encountering some hurdles. But both sides are in constructive talks and consulting with countries to find agreement on the law. Additionally, the EU is taking action to counter challenges from U.S. green subsidies. Also, the EU tries to unleash European aid and funds for the green transition and seek trade deals with various countries. The EU is also monitoring China’s commitments to the Ukraine war. It remains to be seen whether the EU’s ambitious plan to reduce carbon emissions from the transport sector will succeed. But the continued efforts by both sides suggest that progress is being made.