EU's von der Leyen eyes E-fuels carve-out for cars, key lawmaker says

European Commission President Ursula von der Leyen has said she will push for an exemption for cars running on so-called e-fuels under the bloc’s plans to effectively end sales of combustion engine cars by 2035, according to a key lawmaker.

Pascal Canfin, chair of the European Parliament’s environment committee during the last legislature, said that von der Leyen told his Renew group that she saw such an exemption as a “landing ground” to soothe concerns of center-right lawmakers about the phase out.

Automakers would still have to completely eliminate CO2 emissions by 2035.

A spokesperson for von der Leyen declined to comment as the remarks were made behind closed doors with political groups.

The plan, conceived as part of von der Leyen’s bid for a second term at the helm of the EU, resembles one put forward by her center-right European People’s Party earlier this month.

The law to phase out carbon emissions will be reviewed in 2026, and while negotiators previously agreed on exempting vehicles running on fuels made with renewable electricity, those efforts have stalled.

“We keep the timing, we keep the objective, but we make it more clear that it is technologically neutral,” Canfin said. “A car could remain and be sold on the streets with an internal combustion engine if it is run on 100 percent e-fuel, which is 100 percent zero-carbon.”

While such a move would be a political concession to the right, it could be accepted by groups on the left as it would not affect the overall goal of reducing carbon emissions, Canfin said. E-fuels are many times more expensive than conventional fuels, and only a limited number of high-end cars can use them.

To win re-election, von der Leyen needs to secure support from a majority of green lawmakers as well as some members of the hard-right European Conservatives and Reformists groups, according to Canfin.

The vote will take place on July 18 after she outlines her plans for a potential next term.