Politico — 2023-09-06
News from Brussels
Germany had hoped to use the pizzazz of the Munich auto show to hype its vision of saving combustion engine cars with novel e-fuels.
It didn't work out that way.
Efforts by Transport Minister Volker Wissing to persuade countries to sign up to a statement meant to be announced at the show backing synthetic e-fuels as an option for cutting greenhouse gas emissions from passenger cars was scrapped because of disagreements on the proposed text.
A draft of the declaration obtained in advance of the show by POLITICO asked signatories to pledge to invest in new e-fuel plants; to share know-how; and to defend “technological neutrality” in the development of clean vehicle technology — shorthand for refusing to purely rely on batteries to decarbonize road transport.
Backing e-fuels “will also improve industrial policy opportunities for the Global South,” the German-led declaration argued, “as mass production will enjoy particularly favourable conditions in places with low wind and solar electricity production costs.” The declaration's language did not specify which countries it considered would see backing e-fuels as "industrial policy opportunities."
But in the end, only three countries backed Wissing — the Czech Republic and Japan, both big carmakers, along with Morocco, which is hopeful of commercializing its vast potential to use solar and wind power to generate green hydrogen.
That prompted Berlin to drop the effort, according to two industry officials with knowledge of the declaration.
The German transport ministry did not respond to a request for comment.
While the declaration didn't happen, Wissing was still touting the benefits of e-fuels — made with captured carbon dioxide and hydrogen obtained from clean electricity that can be used in traditional combustion engines.
“A successful market ramp-up of e-fuels requires comprehensive political support — worldwide,” Wissing said following a press conference with his Czech counterpart Martin Kupka.
Berlin has pushed hard for EU rules banning the sale of new polluting cars and vans from 2035 to include a loophole for e-fuels. Together with Italy, Germany led a last-ditch effort earlier this year to include language allowing the synthetic fuels.
Germany argues that the fuels could be used to decarbonize the massive existing combustion engine car fleet, which will be on the road for years after new car sales are only electric. It's also seen as a way of preserving at least parts of Germany's world-leading internal combustion engine industry.
German Chancellor Olaf Scholz and German Minister for Transport and Digital Affairs Volker Wissing | Tobias Schwarz/AFP via Getty images
The problem is that synthetic fuels are expensive and still being made in tiny quantities. The EU also plans to use them in hard-to-decarbonize sectors like aviation rather than wasting them on cars.
The e-fuel exemption is still a work in progress.
"The Commission plans to consult member states in the coming weeks in view of a vote ... later this year," said Tim McPhie, a Commission spokesperson. "After that, the act will be subject to scrutiny by the European Parliament and the Council."