Rowing back on the 2035 ICE ban in the EU would impact air quality and health outcomes, as well as undermining business trust, the European Commission has been warned.

Volvo has said it’s “not the time to put domestic political interests ahead of the health and welfare of our planet and EU citizens”

That’s according to a group of 47 businesses including Ford and Volvo, which have written to the Commission urging them to maintain the ban following action by a group of Member States, led by Germany, to overturn it.

Approved by the European Parliament in February after two years of negotiations, the new legislation sets an EU fleet-wide target to reduce CO2 emissions produced by new cars and vans by 100% compared to 2021, effectively banning ICE vehicles as part of the ‘Fit for 55’ package.

But countries including Italy and some Eastern European nations have urged the EU to potentially delay the ban and enable the sale of ICE vehicles powered by e-fuels beyond 2035.

Now a group of 47 businesses that include Volvo Cars, Ford of Europe and Vattenfall have said that any delay of the ban would have a devastating impact on air quality and the environment across the bloc, and would call into question the EU’s ability to reach its climate commitments.

The letter, coordinated by international non-profit Climate Group, adds that Germany’s call for concessions on the use of e-fuels would serve only to prolong the life of the internal combustion engine and delay the switch to zero-emission vehicles.

They say that going ahead with the ban as planned would provide legislative certainty, which is vital for businesses to push forward with their decarbonisation plans and invest in electric vehicles.

Volvo, which will only sell fully electric cars by 2030, has said that now is “not the time for backtracking and blocking of science-based climate targets for our industry”.

CEO Jim Rowan continued: “Now is not the time to put domestic political interests ahead of the health and welfare of our planet and EU citizens, and indeed of future generations. Now is the time for strong, decisive and progressive policy and leadership.

“Volvo Cars is committed to being a fully electric car company by 2030 on our way to climate neutrality by 2040. We are aware of our obligation to help protect the planet. We call on EU governments to show that they are too.”

Ford, which has pledged to go all-electric for passenger cars in Europe by 2030 and carbon-neutral across its European footprint by 2035, has also spoken out on the efforts to derail the ICE ban.

Martin Sander, general manager, Ford Model e Europe, said: “Ford is ready to go all-in electric. The ongoing debate only creates uncertainty among consumers and is distracting from our joint efforts to tackle the climate crisis.”

Sandra Roling, director of transport of Climate Group, said Germany’s efforts to postpone the agreed ban and seek concessions for e-fuels were “deeply concerning”.

She added: “Our asks are simple. Stick to the 2035 date, and no concessions for e-fuels. Give businesses the clarity and certainty they need to invest in the switch to electric vehicles.”

E-fuels at odds with the spirit of the EU zero CO2 mandate

Automotive forecasting provider LMC Automotive has also added its voice to the debate.

In a new blog, Al Bedwell, LMCA’s director, global powertrain, said that e-fuels are a hot topic, “offering a way for an industry undergoing enormous change to get some politically useful concessions from regulators”.

Bedwell said that e-fuels could be seen as a win-win; “new ICE cars will be net-zero CO2 in use, OEMs can have greater control over the disruptive phase-out of combustion cars and the existing ICE fleet can decarbonise at a stroke”.

But he warned that vehicles operating on e-fuels do have tailpipe emissions, which impact local air quality, if not net CO2 emissions.

“At the very least, this is at odds with the spirit of the EU zero CO2 mandate and clearly not something that regulators envisaged when the 2035 proposal was drawn up”.

His post also raises issues on e-fuel availability, cost and efficiency and points out that “most e-fuel will go to the aviation sector which faces a crisis if an alternative to kerosene cannot be found”.

Bedwell summed up: “Yes, e-fuels might be a player in the LV sector in Europe in 2035 and beyond. But they won’t be a big one.”

Pure combustion engines hardly play a role for manufacturers any more

Automotive market data firm Dataforce has asked if the e-fuel discussion is even necessary?

Its Vehicle Lifecycle Calendar finds that from the manufacturer’s point of view, combustion engines no longer play as big a role as often assumed. In 2026, just three years from now, 44% of all models on sale will be all-electric, only 32% will be pure internal combustion cars. Which means that even nine years before the end of the internal combustion engine in the EU, the product portfolio will be focused on electric vehicles.

Like LMCA, Dataforce said supply of e-fuels will be scarce and aircrafts, ships and trucks should be supplied first. If relevant quantities are then still available for passenger cars, e-fuels can be used much more effectively in the existing fleet, while new vehicles hit the road electrically.

The business also pointed out that BEVs will be essential to ensure climate-neutral mobility for the vast majority of people, as the upcoming Euro 7 emissions standard makes it more and more difficult for manufacturers to build affordable small cars in the A- and B-segments.

“Consequently, it is important that technological advances in battery technology are accelerated and that manufacturers develop in the same direction in order to reduce unit costs,” Dataforce added.