E-fuels for transport risk hurting EU climate goals

Significance

The EU’s decision to allow the sale of new e-fuel-powered vehicles after 2035 has focused attention on a controversial decarbonisation pathway aimed primarily at transportation, compensating for rather than eliminating emissions.

Impacts

• The possible development of e-fuels at industrial scale should attract R&D funds into DAC.
• Investment decisions based on the expectation of e-fuel availability in the future carry major risks.
• Insufficient power system decarbonisation would undermine the fragile climate benefits of e-fuels.