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“Is the EU’s Push for Carbon-Neutral Fuels Enough to Keep ICE Cars on the Road?”

The German car industry has successfully lobbied for internal combustion engine (ICE) cars to remain on sale in the EU after 2035, as long as they use carbon-neutral fuels. However, BMW Group CEO Oliver Zipse warns that this may not be enough if the EU does not accelerate the availability of these fuels, as it could result in a de facto ban on ICEs. The problem lies in the fact that the car industry is moving quickly, potentially outpacing the production and affordability of synthetic e-fuels. The EU has set targets for zero-emission vehicles and reductions in emissions by 2035, but other industries such as aerospace and maritime have slower timelines due to the lifespan and costs of their vehicles. Synthetic fuels are seen as the solution for applications where battery electrification is not viable. Companies like Zero Petroleum and Porsche’s investment in Highly Innovative Fuels are making strides in producing synthetic fuels, but these efforts are still relatively small. The concern is that while there is demand for these fuels, the supply may not keep up with the car industry’s pace. On the other hand, Volkswagen CEO Thomas Schäfer argues that investing in old ICE technology is not beneficial when electric vehicles (EVs) offer more advantages. However, ICE technology is still necessary for certain industries and heavy-duty applications. The mass availability of carbon-neutral fuels would benefit not only sports car makers and high-mileage drivers but also heavy industries that cannot transition to electrification. These fuels could help these industries move away from fossil fuels, benefiting the environment as a whole. In conclusion, the availability of carbon-neutral fuels is crucial for the continued use of ICEs in specific applications and industries, and it would align with the broader goals of reducing emissions and transitioning to cleaner energy sources.