Transport Brief - Will the promise of CO2-neutral e-fuels hold?

Will the promise of CO2-neutral e-fuels hold?

When German transport minister Volker Wissing made a last-minute intervention earlier this year to stop the phase-out of internal combustion engines for cars, he argued that the potential of e-fuels as an alternative to electric mobility for climate-neutral road transport shouldn’t be excluded.

His party, the free-market FDP, is convinced that the state shouldn’t be the one to decide which technology to use, rather keeping all options open and allowing the market to figure it out.

“Even after 2035, vehicles must be allowed to be registered that run on #eFuels in a climate-neutral way. More openness, fewer unnecessary bans,” Wissing posted on X (formerly Twitter) in February.

Wissing effectively blocked the adoption of the EU’s CO2 standards for cars and vans at the last second, until he received a written commitment from the European Commission that they will permit a new category of e-fuelled combustion engine cars.

In what was then seen as a win for the FDP, the Commission vowed to present a new category of “e-fuel only” cars (as an implementing regulation to EURO 6, which governs car pollution standards) and later propose how those can be incorporated into the CO2 standards for cars and vans law (via a delegated act).

However, the presentation of this new category is taking longer than expected, largely due to an internal dispute within the Commission itself.

DG GROW, the department led by Internal Market Commissioner Thierry Breton – himself a sceptic of the combustion engine phase-out – wants the e-fuels used in the new car category to save 70% of CO2 as compared to fossil fuels.

This, DG GROW argues, is based on the definition of “renewable fuels of non-biological origin” (RFNBOs) – a broader category that includes both liquid e-fuels and gaseous hydrogen – which is set in the EU’s Renewable Energy Directive (RED).

DG CLIMA, however, the department that used to be led by Frans Timmermans and is currently in a bit of a political vacuum, takes the agreement by its word. And there, the phrase “CO2 neutral” made it into the famous recital clause No. 11.

“Following consultation with stakeholders, the Commission will make a proposal for registering after 2035 vehicles running exclusively on CO2 neutral fuels in conformity with Union law, outside the scope of the fleet standards, and in conformity with the Union’s climate-neutrality objective,” the clause reads.

How did it end up there? Essentially, it is the translation of a formulation in the German coalition treaty. The Green party, realising they had no other choice than to give in to Wissing’s demand, translated it word for word into the new regulation’s recitals.

But “CO2 neutral” is not the same as a 70% reduction in CO2 emissions.

Granted, electric vehicles (EVs) are not strictly carbon neutral either. EVs are only CO2 neutral when it comes to tailpipe emissions (which they don’t have) and so far no law requires them to run exclusively with carbon-neutral electricity.

Therefore, according to Wissing, we shouldn’t nitpick.

“It makes no sense to say: ‘I don’t want 70%, so I’ll take zero CO2 reduction’,” Wissing told journalists on Monday (4 September) when asked about the dispute. “That is not logical.”

Wissing also said he was advocating “for a practical solution”.

“And this cannot be 100% [emissions reduction],” he added, taking up the argument by e-fuel advocates who argue that obliging e-fuels to be 100% CO2 neutral – while not doing so for the electricity used in electric cars – is unfair and so far not feasible.

While there is an argument to be made, at some point, what is written into law should also have a meaning. And what is written in the recital clause is “CO2 neutral”. This is what German coalition partners, EU countries, and ultimately EU legislators agreed upon.

And crucially, the alternative is not zero CO2 reduction. It is to take the minister (and the recital clause) at their word and to only continue to allow cars with internal combustion engines if they run on “CO2 neutral” e-fuels.

If the industry cannot live up to producing them, the future would have to be fully electric – because the promise of e-fuels to run “climate neutral” (see the minister’s tweet) does not hold.

– Jonathan Packroff

Poland goes to court to save petrol and diesel cars

Poland’s legal challenge against the EU-mandated shift to zero-emission car sales in 2035 may be little more than an electoral stunt, but it reflects a genuine concern held by many: that the expense of electric mobility makes it a transport mode for the rich.

Poland has made no secret of its dislike for Brussels’ myriad of green laws. The Fit for 55 package, which aims to cut emissions in the EU by 55% by 2030, has been particularly contentious in Poland, leading the country to seek a legal injunction against a number of files.

This includes legislation mandating a 100% reduction in CO2 emissions for all cars and vans sold after 2035 – a law on which Poland was outvoted earlier this year (in fact, Poland was the only country to vote against the legislation, with Italy, Romania and Bulgaria voting to abstain).

So, will carmakers be awaiting the outcome of this legal challenge with bated breath, wondering if the Court will extend their days of selling petrol and diesel cars?

Probably not. A similar legal challenge by Poland against the EU carbon market was shot down. Most predict the same will happen again.

However, the phrasing used by Environment Minister Anna Moskwa in justifying the challenge is interesting.

“Does the EU want to make authoritarian decisions about what kind of vehicles Poles will drive and to increase energy prices in Poland? The Polish government will not allow Brussels to dictate,” she wrote on X (formerly Twitter).

The idea is not that Poles love the roar of combustion engines more than their European counterparts. Rather, it is the implication that an out-of-touch Brussels elite is removing more affordable vehicle options, forcing Poles to spend more to get from A to B.

And when one looks at the price differential between combustion engine cars and electric vehicles at the moment, it is not hard to see why. Those with less purchasing power will find it much more difficult to embrace the electric revolution.

Of course, green campaigners point out that a shift in manufacturing priorities will boost the supply of e-cars, dropping the price. A robust second-hand market will also make it cheaper to buy an EV in advance of the 2035 cut-off date.

But for now, the perception that wealthy Eurocrats are forcing motorists who cannot afford it to pay more is not going away. And that will continue to pose problems in much of Europe.

– Sean Goulding Carroll

To dismay of airlines, France considers hiking flight taxes

French transport minister Clément Beaune made waves last week when he suggested that the EU implement a minimum price for flights in a bid to cut aviation emissions.

“Plane tickets for 10 euros when we’re in the midst of the ecological transition, that’s no longer possible,” Beaune told L’Obs magazine. “That doesn’t reflect the price for the planet.”

The extra taxes imposed on airlines would be invested in enhancing sustainability, according to Beaune, which essentially means ploughing funds into France’s rail network.

It is hoped that as flight prices rise, travellers would consider cleaner alternatives.

While rail advocates are sure to see the move as an important means to increase green travel, airlines have already formulated their objections.

The real solution, according to aviation industry sources, is not to redistribute aviation money to trains, but rather to liberalise the rail industry across Europe.

Adopting a more free market model, as was done with aviation liberalisation, would see competition increase, bringing prices down and improving services, it is argued.

Proponents point to the excellent train offerings in Spain, which they put down to the invisible hand of the market triumphing over the (semi) state model in place in many EU countries. Critics, meanwhile, point to the UK, where privatisation failed to arrest ticket prices and led to questionable service.

Whether Minister Beaune will be able to convince his European counterparts of his controversial plan remains to be seen.

In the meantime, expect to see higher taxes on airline tickets in France’s 2024 budget.

– Sean Goulding Carroll

E-fuels won’t be CO2 neutral by 2035, says German transport minister

The registration of new cars with internal combustion engines running on e-fuels should be allowed after 2035, even if the fuels are not 100% climate neutral, German transport Minister Volker Wissing (FDP/Renew Europe) said at an e-fuels conference on Monday (4 September).

EU considers watering down ‘CO2 neutrality’ standard for eFuels

The European Commission is considering watering down a carbon neutrality requirement for e-fuels to allow combustion engine cars to be sold after 2035, internal documents show, suggesting a split in the EU executive on handling the matter.

Exhausted EU airline pilots experience ‘microsleeps’ while flying: report

Insufficient rest opportunities are forcing tired pilots in the EU to fly longer than they should, with three-quarters of pilots experiencing “microsleeps” in the cockpit while airborne, a new report has found.

Stakeholders divided on fairness, practicality of Parisian e-scooter ban

As the Parisian ban on self-service scooters enters into force on 1 September, the city hall calls the move revolutionary amid an urban jungle, while stakeholders remain divided on the pros and cons.

France calls for minimum price on European flights

France’s transport minister has called for a minimum price for plane flights in Europe to battle climate change.

[Edited by Nathalie Weatherald]

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