The European Commission has drawn up a plan to allow the sale of new cars with internal combustion engines after 2035 as long as they run only on climate-neutral e-fuels, as it tries to resolve a dispute with Germany over the phasing out of cars with conventional engines, Reuters reports.

The European CommissionPhoto: HotNews.ro / Viktor Kosmei

A draft proposal seen by Reuters on Tuesday proposes creating a new type of vehicle category in the European Union for cars that can only run on carbon-neutral fuel.

The draft states that such vehicles must use technology that will prevent them from moving if other fuels are used.

The proposal could allow carmakers to continue selling cars with internal combustion engines after 2035, when a planned EU law will ban the sale of new cars that emit CO2.

After months of negotiations, EU countries and the European Parliament agreed on the law last year. But this month, Germany’s transport ministry surprised other countries by filing a last-minute objection to the law, days before the final vote that was supposed to ensure its entry into force.

The main demand of the German ministry is that the EU allows the sale of new cars that run on electronic fuel after 2035.

On Tuesday, the agency said it had contacted the Commission to try to find a solution to the problem, which is closely watched by Germany’s powerful car industry.

“We are interested in a quick clarification, but it should be long-lasting and binding. We are now carefully considering it,” the spokesman said.

Two sources familiar with the matter said the Commission’s condition that cars must recognize CO2-neutral fuels from fossil fuels is problematic for Germany because it would largely force automakers to develop new engines.

Sources told Reuters that German Transport Minister Volker Wiesing did not want to completely reject the Commission’s proposal, but rather made some improvements.

The parties aim to reach an agreement before the EU summit on Thursday.

A Commission official declined to comment on the draft document, but referred to comments from EU climate policy commissioner Frans Timmermans, who said last week that any decision would have to be consistent with the 2035 phase-out law passed last year.

“Discussions are ongoing between the Commission and the German authorities,” the spokesman said.

An EU official said on Monday that any proposal to register electric cars would only be made after a law to phase out internal combustion engines has been finalized.

Electronic fuel is obtained by synthesizing captured CO2 emissions and hydrogen produced using CO2-free electricity.

They are not mass produced yet. A study published Tuesday by the Potsdam Institute for Climate Research found that all planned e-fuel projects worldwide would only produce enough fuel to cover 10 percent of Germany’s demand for e-fuel in aviation, shipping and chemicals over the next few years.