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European Union

BMW CEO Oliver Zipse has voiced strong opposition to the European Union’s plan to ban sales of new combustion-engine cars by 2035, labelling it as the “wrong approach” and advocating for a faster rollout of e-fuels.

Key Points:

  • EU 2035 Legislation: The EU plans to ban the sale of new non-zero-emission cars starting in 2035. This includes a prohibition on new combustion engines unless they run on carbon-neutral fuels like e-fuels.
  • Zipse’s Critique: Zipse argues that the European Commission needs to accelerate e-fuel availability to make their use practical by the deadline. He contends that without significant progress, the legislation could effectively amount to a ban on combustion engines, which he refers to as a “bogus solution.”

E-Fuel Viability Issues:

  • Production Challenges: The production of e-fuels is energy-intensive, relying on ‘green’ hydrogen created through the electrolysis of water using renewable electricity. A 2019 International Energy Agency report highlighted that meeting today’s hydrogen production needs from electricity alone would require significantly more energy than the EU’s current output.
  • Energy Allocation: Critics, including Zipse, suggest that the immense energy required for e-fuel production might be better utilised directly powering electric vehicles rather than supporting the production of e-fuels.

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After Germany questioned the EU’s support for the regulations, the bloc’s member states postponed a vote scheduled for next week on the law that will ban the sale of new CO2-emitting vehicles by 2035.

However, Audi, they have planned to totally cease production of ICE cars by the end of 2026 but this might see some delays due to the ongoing discussion.

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