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HomeTraditional FinanceCommoditiesItaly Demands Inclusion of Biofuels in EU’s Combustion Engine Phase-Out Plan

Italy Demands Inclusion of Biofuels in EU’s Combustion Engine Phase-Out Plan

The European Union (EU) has been working towards reducing car CO2 emissions by phasing out sales of new combustion engine cars by 2035. However, Germany’s last-minute opposition to the law has caused some delay in the EU’s plan. To unblock the phase-out, Italy has warned the European Commission that it will only support a solution if the sale of cars running on biofuels continues after 2035. Italy has demanded that the EU allow sales of new combustion engine cars after 2035 if they run exclusively on carbon-neutral e-fuels, which includes manufacturers of combustion engine cars and parts.

Italy has emphasized that the definition of “CO2 neutral fuels” should include biofuels derived from biomass such as plants. In a letter dated March 21 to the Commission, three Italian ministers of transport, environment, and enterprises said that Italy would not accept a restricted interpretation by the Commission. They expect the Commission to propose allowing sales of cars running on any fuel that, when combusted in an engine, only releases CO2 emissions that were captured from the air during their manufacture.

The Commission has drafted a proposal to allow carmakers to register new cars that run exclusively on carbon-neutral fuels. However, biofuels were not included in the definition of “carbon-neutral fuels”. The draft was seen by Reuters on Tuesday. A spokesperson for Italy’s transport ministry said that they have not received any response to the letter.

The EU is currently in talks with Germany to resolve the issue, and some officials hope to reach a deal before the EU leaders’ summit on Thursday. Countries such as Poland and the Czech Republic have also raised concerns regarding the law.

Italy’s demand to include biofuels in the EU’s combustion engine phase-out plan highlights the need for a comprehensive approach towards reducing CO2 emissions from the transportation sector. If the EU wants to achieve its emissions targets, it must consider all possible solutions, including biofuels. The EU must work towards finding a solution that satisfies all member states’ concerns while also meeting its emissions reduction targets. A commitment from the Commission on when it will make this legal proposal could unlock a deal on the combustion engine phase-out, as highlighted by the Italian ministers.

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