Following the Wake Up veto from Germany last October 2022, the decree adopted by the Council and the European Parliament set a milestone: the end of new internal combustion engine vehicle sales by 2035. Europe is entering a new phase where it will be essential to understand how this target will be achieved and under what conditions it will be implemented.
Germany eventually signaled its acceptance after a concession to resume marketing vehicles powered by neutral synthetic fuels. The move came as part of the influence wielded by a German car lobby led by Porsche and supported by several premium manufacturers. While Italy pressed for including biodiesel in this category, the general rule remains that conventional internal combustion engines face a 2035 deadline. The idea of synthetic fuels keeps some engines alive beyond that date, with discussions about a potential extension toward 2050. These are the core ideas behind neutral synthetic fuels and the twists this policy presents for sustainable mobility.
Which cars can be sold?
From 2035 onward, European markets will allow the sale of all internal combustion vehicles that run on synthetic fuels created from neutral and renewable energy sources. These fuels, sometimes called e-fuels, combine hydrogen and carbon dioxide to power engines. The sustainability claim rests on capturing CO2 directly from the atmosphere and using renewable energy to drive the hydrolysis process that creates hydrogen. In practice, this means a broad range of vehicles, including fully electric models, hybrids, and those using e-fuels, can be part of the market mix.
Can any internal combustion engine use e-fuel?
Yes. E-fuels are designed to be compatible with existing internal combustion engines without major modifications. When an e-fuel or synthetic fuel is used in a petrol or diesel car today, it can operate normally. There are different variants of e-diesel and e-gasoline, all engineered to work with current engines. The performance differences are not framed as better or worse; they present a distinct set of benefits. Importantly, no substantial mechanical changes to the propulsion system are required for the engine to run on e-fuel, though some electronic controls may be adjusted for optimal operation.
Will it be possible to continue using any thermal means in 2035?
Yes. The rule targets sales only, not the continued use of existing vehicles. Community regulations aim to limit the ongoing use of fossil-fuel engines, but ownership and operation of existing combustion vehicles through 2050 remain possible, with or without e-fuel. This means current vehicles can still be driven, depending on local rules and fuel availability.
Will e-fuel vehicles be able to enter low-emission zones?
If the thinking remains fixed on exhaust emissions alone, the path forward could be restrictive. A petrol or diesel car that relies on e-fuel but shows conventional exhaust signs may face limitations in low-emission zones. As long as the fuel and engine pairing meets the region’s standards, access to city centers and restricted zones will depend on the specific labeling and compliance criteria established for e-fuel vehicles.
How much do e-fuels cost?
Price is largely volume-driven. Right now e-fuels are more expensive due to limited production. An assessment by a leading environmental council projects a cost around €2.80 per liter by 2030 in an optimized scenario. The Volkswagen Group has signaled that price expectations in such a scenario would hover near €2 per liter, reflecting current production realities and market demand.