EU, Germany reach deal that requires new cars to be carbon neutral by 2035

Germany reached an agreement with the European Union on a landmark regulation that requires new cars to be carbon neutral by 2035, resolving a dispute that threatened to undermine the bloc’s ambitious blueprint to reduce greenhouse gas emissions.

The government in Berlin said it won key assurances that the EU’s rules would be technology-neutral that would leave space for so-called e-fuels to be used in a zero-emissions framework.

“This paves the way for vehicles with combustion engines that only use CO2-neutral fuels to be newly registered after 2035,” German Transport Minister Volker Wissing said Saturday in a statement.