Under pressure from Berlin, the EU relaxes the ban on internal combustion engines

After months of stalemate, Germany and the European Commission have finally reached an agreement to unblock a key text of the EU climate plan on CO2 emissions from cars.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The European Commission and Germany have reached an agreement to unblock a key text of the EU’s climate plan on CO2 emissions from cars, by relaxing theban on combustion engines after 2035.

On March 25, 2023, the European Commission and Germany announced an agreement that unlocked a key piece of text in the EU’s climate plan on CO2 emissions from cars. Berlin had blocked a regulation to reduce the CO2 emissions of new vehicles to zero. The two parties have found common ground to relax the ban on internal combustion engines after 2035. This decision is a victory for German and Italian high-end manufacturers, who can extend the use of combustion engines beyond 2035.

Germany had called for the Commission to present a proposal that would pave the way for vehicles running on synthetic fuels. This technology, still under development, would consist of producing fuel from CO2 resulting from industrial activities. However, environmental NGOs consider this technology to be expensive, energy-intensive and polluting. Indeed, synthetic fuels will only be relevant for a few luxury cars such as Porsche 911s or Ferraris, due to their cost.

The regulation on CO2 emissions from cars will be submitted to the ambassadors of the 27 member countries on Monday in Brussels for final adoption at a meeting of energy ministers on Tuesday. The president of the European Parliament’s Environment Committee, Pascal Canfin, said that the text was unchanged and that the rule of 100% zero-emission cars by 2035 was maintained. He assured that he would be vigilant on the respect of the “climate neutrality” of the thermal engines which will be authorized.

The Ministry of the Economy forecasts stable regulated tariffs in 2026 and 2027 for 19.75 million households, despite the removal of the Arenh mechanism and the implementation of a new tariff framework.
The federation of the electricity sector proposes a comprehensive plan to reduce dependence on fossil fuels by replacing their use in transport, industry and housing with locally produced electricity.
The new Czech Minister of Industry wants to block the upcoming European emissions trading system, arguing that it harms competitiveness and threatens national industry against global powers.
Several scenarios are under review to regain control of CEZ, a key electricity provider in Czechia, through a transaction estimated at over CZK200bn ($9.6bn), according to the Minister of Industry.
The government has postponed the release of the new Multiannual Energy Programme to early 2026, delayed by political tensions over the balance between nuclear and renewables.
Indonesia plans $31bn in investments by 2030 to decarbonise captive power, but remains constrained by coal dependence and uncertainty over international financing.
A drone attack on the Al-Muqrin station paralysed part of Sudan's electricity network, affecting several states and killing two rescuers during a second strike on the burning site.
The Bolivian government eliminates subsidies on petrol and diesel, ending a system in place for twenty years amid budgetary pressure and dwindling foreign currency reserves.
Poland’s financial watchdog has launched legal proceedings over suspicious transactions involving Energa shares, carried out just before Orlen revealed plans to acquire full ownership.
The Paris Council awards a €15bn, 25-year contract to Dalkia, a subsidiary of EDF, to operate the capital’s heating network, replacing long-time operator Engie amid political tensions ahead of municipal elections.
Norway’s energy regulator plans a rule change mandating grid operators to prepare for simultaneous sabotage scenarios, with an annual cost increase estimated between NOK100 and NOK300 per household.
The State of São Paulo has requested the termination of Enel Distribuição São Paulo’s concession, escalating tensions between local authorities and the federal regulator amid major political and energy concerns three years before the contractual expiry.
Mauritania secures Saudi financing to build a key section of the “Hope Line” as part of its national plan to expand electricity transmission infrastructure inland.
RESourceEU introduces direct European Union intervention on critical raw materials via stockpiling, joint purchasing and export restrictions to reduce external dependency and secure strategic industrial chains.
The third National Low-Carbon Strategy enters its final consultation phase before its 2026 adoption, defining France’s emissions reduction trajectory through 2050 with sector-specific and industrial targets.
Germany will allow a minimum 1.4% increase in grid operator revenues from 2029, while tightening efficiency requirements in a compromise designed to unlock investment without significantly increasing consumer tariffs.
Facing a structural electricity surplus, the government commits to releasing a new Multiannual Energy Programme by Christmas, as aligning supply, demand and investments becomes a key industrial and budgetary issue.
A key scientific report by the United Nations Environment Programme failed to gain state approval due to deep divisions over fossil fuels and other sensitive issues.
RTE warns of France’s delay in electrifying energy uses, a key step to limiting fossil fuel imports and supporting its reindustrialisation strategy.
India’s central authority has cancelled 6.3 GW of grid connections for renewable projects since 2022, marking a tightening of regulations and a shift in responsibility back to developers.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.