# German minister says ‘on right track’ to solving CO2-emitting car row
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-06
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Germany in Row with EU Over Ending Sales of CO2-Emitting
Meta Description: Germany's transport minister optimistic for resolution to dispute with EU over ban on new CO2-emitting cars by 2035, as negotiations continue.
URL: https://financedigest.com/german-minister-says-on-right-track-to-solving-co2-emitting-car-rowhtml

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By Kate Abnett and Andreas Rinke

BERLIN/BRUSSELS (Reuters) -Germany’s transport minister is hopeful of a solution to a row with the European Union over the bloc’s law to end sales of new CO2-emitting cars in 2035, he said on Monday.

After months of negotiations, the European Parliament, the Commission and EU member states last year agreed to a law requiring all new cars sold in the EU from 2035 to have zero CO2 emissions – effectively making it impossible to sell combustion engine cars from that date.

But in recent weeks, German support has wavered, forcing Brussels to delay a final vote scheduled for this week to [approve the law](https://www.financedigest.com/eu-approves-law-to-end-sales-of-new-co2-emitting-cars-by-2035.html "EU approves law to end sales of new CO2-emitting cars by 2035"). That vote should have been a formality at this stage of the legislative process, and an attempt to rewrite an EU policy this late is highly unusual.

“We are on the right track,” said Volker Wissing on the sidelines of a cabinet meeting at Meseberg, near Berlin.

EU Commission President Ursula [von der Leyen](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") attended the meeting on Sunday, where she and German Chancellor Olaf Scholz said they were in “constructive talks”, without giving detail.

The transport minister said on Monday he agreed with von der Leyen that the EU’s climate goals had to be met, and the issue was how to integrate [openness to technology](https://www.financedigest.com/qib-uk-plc-selects-volante-technologies-psd2-open-banking-solution.html "QIB (UK) plc selects Volante Technologies’ PSD2 Open Banking solution") into the law.

Wissing wants the use of synthetic [fuels to remain possible after the 2035 deadline – providing a potential lifeline to combustion engine cars](https://www.financedigest.com/eu-approves-effective-ban-on-new-fossil-fuel-cars-from-2035.html "EU approves effective ban on new fossil fuel cars from 2035") – and has said the Commission’s promised proposal on how to make this happen is missing.

The EU law [says the Commission will make a proposal on how vehicles](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles") running on CO2-neutral fuels can be sold after 2035, if this complies with climate goals.

Pascal Canfin, [chair of the European Parliament’s environment committee](https://www.financedigest.com/us-house-committee-chair-concerned-by-tesla-deals-in-china.html "US House committee chair ‘concerned’ by Tesla deals in China"), said he had not been asked to reopen negotiations on the law.

He said doing this would risk other carefully negotiated deals on [climate policies being torn apart at the last minute](https://www.financedigest.com/one-minute-to-midnight-says-johnson-as-climate-conference-opens.html "“One minute to midnight” says Johnson as climate conference opens").

That would kill the [Green Deal](https://www.financedigest.com/spains-cepsa-signs-green-hydrogen-shipping-deal-with-rotterdam-port.html "Spain’s Cepsa signs green hydrogen shipping deal with Rotterdam port"). So no, no way,” Canfin said, referring to the EU’s climate goals.

Transport accounts for nearly a quarter of EU emissions and has bucked the bloc’s overall trend of [falling CO2 output](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") in recent decades.

The EU has not yet rescheduled the vote. The [European Commission](https://www.financedigest.com/german-economy-expected-to-grow-modestly-in-2023-european-commission.html "German economy expected to grow modestly in 2023 – European Commission") and Sweden, which holds the EU’s rotating presidency, are in talks with countries to seek agreement.

(Reporting by Andreas Rinke and Kate Abnett; writing by Miranda Murray; editing by Jason Neely and Barbara Lewis)


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