EU, Germany Reach Agreement on Phasing Out Fossil Fuels

The EU and Germany have struck a landmark deal to prohibit new sales of fossil-fuel cars from 2035, as the bloc seeks to become “climate-neutral” by 2050 with net-zero greenhouse gas emissions.

The agreement comes after Germany had blocked earlier drafts of the plan, demanding that Brussels give assurances the law would allow the sales of new cars with combustion engines that run on synthetic fuels.

As a leading global auto producer, Germany had been worried about not being able to use new types of fuels that were neutral in their CO2 emissions. After weeks-long negotiations between the European Commission and Germany, agreement has finally been reached.

German firms are busy developing synthetic fuels that would not have been permitted under earlier drafts of the agreement. Though the technology is unproven, German manufacturers hope it will lead to the extended, but carbon-neutral, use of combustion engines.

Environmental NGOs have questioned the place of synthetic fuels in the automotive sector's transition toward clean energy sources, saying they are too expensive, polluting and energy- intensive.

Many analysts have added to doubts over whether vehicles powered by synthetic fuels can compete in a market where electric cars are expected to become cheaper over time.

However, German automakers were not alone in their attempts to leave open the door to synthetic fuels, with major car manufacturers from Italy, Poland and Hungary joining in an alliance against the combustion-engine ban.