In late March 2023, the EU finally approved a law to cement its widely publicised ambition to end the sale of CO2 emitting light vehicles by 2035. According to the official timeline, all internal combustion engine (ICE) vehicles must now have 55% lower carbon emissions from 2030 (compared to 2021 levels) and zero carbon five years afterwards.
However, rather than signalling the end of ICE in the region once and for all, a last-minute intervention from Germany complicated the agreement. Focusing on CO2 instead of strictly tailpipe emissions, the industry leading country argued that an exemption should be made for ICE running on carbon neutral synthetic fuels (e-fuels).
Following weeks of debate, an agreement between Germany and the EU was struck on these terms. Despite some commentators calling for a unified approach that emphasises all-electric powertrains, ICE now has a route for sustained European market presence post-2035.
