German objection delays vote on EU ICE ban

LAST-MINUTE German objections to the European Union’s 2035 internal combustion engine (ICE) ban have come to light as the country seeks assurances that the European Commission will put forward provisions outlining how e-fuels can be used in new ICE cars after the 2035 cut-off.

A Bloomberg report has detailed how a key vote on an effective ban on ICE cars was delayed after Germany unexpectedly voiced last-minute objections over concerns as to how the forthcoming ban will affect its substantial automotive industrial base.

It is understood that EU and German officials are now discussing how to be reach a compromise that will allow the use of e-fuels – a technology that among others is being spearheaded by German-based Porsche – in new cars after 2035, with Bloomberg reporting that there are signs from Berlin that a deal may still be reached that will allow the phase-out to go ahead.

European Commission president Ursula von der Leyen is set to meet German chancellor Olaf Scholz to discuss the matter imminently. But German transport minister Volker Wissing insists elements of the plan are overly ambitious.

“It is contradictory when the EU Commission calls for high climate protection targets on the one hand, but on the other hand makes it more difficult to achieve these targets through overambitious regulation,” said Mr Wissing.

A vote on the matter was to be cast this week. However, following Germany’s objections, the matter will now be reviewed in due course.

Bloomberg reports that the delay reflected concerns that Germany would have abstained from voting, a move which may have derailed the region’s green plans, according to people familiar with the matter.

Some German officials have signalled that a deal that will preserve the broader plan is achievable, Bloomberg reports.

“If the commission has a credible stance in conversations with the ministers and the German government, I am optimistic that a solution will be found,” said German Federal Ministry for Economic Affairs and Climate Action secretary, Sven Giegold.

The eleventh-hour objection is highly unusual in EU lawmaking, given the deal between the EU’s 27 member states and parliament was struck in October last year and this week’s vote was previously seen as a simple formality.

Bloomberg reports that the EU is “scrambling” to arrive at a solution that will assuage Germany’s concerns, meaning a compromise in legislation is likely, even if the final approval is delayed.

It is understood that a caveat to allow the production of e-fuels from renewable sources is likely to be technical, meaning there will not be much time to reach an agreement before EU parliamentary elections are held next year.

Mr Wissing’s pro-business party, the Freie Demokratische Partei (Free Democratic Party) is understood to be seeking a more flexible approach to certain elements of the EU’s environmental program than other partners in the governing coalition.

The FDP is reported to be a champion of technological choice and a campaigner for German jobs. Ford’s recent decision to cut 3800 jobs across Europe, with the majority in Germany, is thought to be in part responsible for Wissing’s decision.

Mr Wissing is also reported to be questioning the region’s plan to implement Euro 7 fuel standards by 2025, saying the stricter rules could jeopardise jobs and the freedom of mobility for Europeans.

“It is clear to me that we must take another fundamental look at Euro 7. The outcome must not jeopardise jobs, nor must mobility become a luxury good,” he said.

With Bloomberg