EU law ends sale of CO2-emitting cars by 2035

STORY: New cars sold in the European Union must be zero-emission starting from 2035.

A landmark law was agreed by EU countries, after Germany won an exemption for cars running on e-fuels.

The target is designed to drive a rapid decarbonization of new car fleets in Europe.

(Frans Timmermans, EU climate policy chief)

"I think Europe will be the first climate-neutral continent on this planet."

The new EU law will also require all new cars sold from 2030 to have 55% lower CO2 emissions versus 2021 levels.

Transport accounts for nearly a quarter of EU emissions.

But getting all member countries to agree on the proposal was not smooth sailing.

After facing opposition from Germany, the European Commission pledged to create a legal route to continue sales of new cars that only run on e-fuels after 2035.

That exemption offers a potential lifeline to traditional internal combustion engine vehicles.

E-fuels are considered carbon neutral because they are made using captured CO2 emissions.

Proponents say it balances out the CO2 released when the fuel is combusted in an engine.

Environmental group Greenpeace says the deal is a setback for climate protection.

Here's Greenpeace spokesperson Benjamin Stephan:

"We will need e-fuels, but a lot of them in aviation, where we have no alternatives. In cars, this solution is completely inefficient because we need a lot of electricity to produce it. And an electric car would go five times as far on the same amount of electricity."