All new cars sold in the EU from 2035 must have zero CO2 emissions, under the EU's main climate policy for cars, which countries agreed earlier this year. A draft EU legal proposal, seen by Reuters, showed Brussels plans to set strict conditions for e-fuel cars - requiring them to run on fully CO2 neutral fuels. E-fuels are considered carbon neutral when they are made using captured CO2 emissions that balance out the CO2 released when the fuel is combusted in an engine. The draft rules would be stricter than the low-carbon fuel rules in some other EU climate policies. For example, countries can use certain fuels to meet EU renewable energy targets if they achieve a 70% emissions saving, rather than 100%.

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Persons: Jan Schwartz, Ralf Diemer, Kate Abnett, Riham Alkousaa, Philip Blenkinsop Organizations: REUTERS, Rights, European, European Commission, Reuters, eFuel Alliance, Manufacturers, Thomson Locations: Allersberg, Germany, Hamburg, Munich, Rights BRUSSELS, Brussels, Berlin