How Italy and Germany supported Ferrari and Porsche by delaying the Green Deal vote and emphasising electric fuels instead of electric vehicles.
The “European Green New Deal,” a rule that would formally forbid the distribution of new cars powered by diesel or petrol in the EU starting in 2035, was scheduled for a vote by the Council of Ministers of the European Union (EU) on March 7. This would result in a 100% reduction in carbon emissions from autos across the bloc of 27 nations.
In the EU, cars currently contribute 15% of all CO2 emissions. Reducing their emissions would have a significant impact on the EU’s sustainability and battle against climate change.
The legislation was already completed, accepted, and passed by the Parliament in February 2023 after being finalised in October 2022. The Council’s approval was the only thing still lacking, and it is currently up in the air when Germany, supported by Italy, Poland, and Bulgaria, vowed to obstruct the vote.
Why? due to their important contribution to the automotive sector.
Keeping the Heritage Alive
Porsche and Ferrari are two brands with enormous political clout in their own nations as well as the global automotive industry.
Their economic and social standing was sufficient to affect their governments’ attitude in the impending referendum since they were reluctant to give up their screaming engines as well as crackling exhausts through the use of batteries rather than internal combustion engines (ICE).
The automakers chose to invest in e-fuels as a new strategy for the decarbonization of the transportation sector rather than converting their classic models, such as the Porsche 911, into battery-operated automobiles.
Activists, lawmakers, and even the auto industry itself are criticising this alternative to battery-powered vehicles, despite Porsche having previously committed over $75 million in an e-fuel factory in Chile. This is an unreliable choice for the switch to carbon-free transportation because of too many factors.
E-fuels are produced by mixing hydrogen separated from water with carbon dioxide that has been collected. This results in a synthetic hydrocarbon fuel. Although CO2 is emitted during burning, it is regarded as climate neutral since it is balanced by the CO2 that was previously captured.
Since energy is required for the creation process, a fuel can only be zero-carbon if all of the energy it uses is renewable.
Furthermore, because e-fuels operate similarly to petrol and diesel, distribution and refilling may be carried out using already-existing logistics, pipelines and petrol stations, saving on the expenses associated with building the new infrastructure needed for electric vehicles (EVs).
This has many shortcomings despite the fact that it could look like a perfect solution.
First off, because it is still in its early phases, e-fuel manufacturing is still highly expensive. Second, as it is essential to use renewable energy rather than fossil fuels, monitoring the fuel’s output can increase the cost of the procedure.
Finally, according to a study by Transport&Environment, only 2% of European cars will be powered by e-fuel by 2035. The estimated 287 million cars in the EU’s fleet could only be fuelled by five million e-fuels.
Oil corporations and engine manufacturers have labelled synthetic fuel as a “Trojan Horse” that is being used to stall the adoption of zero-emission technologies.
Why, then, do Ferrari and Porsche place such a high value on this fuel?
For Ferrari, maintaining the illusion of a shift towards environmentally friendly transportation is just one aspect of the equation. Their overarching objective is to protect their history.
German and Italian sports automobiles are far more interested in the super-power density of these e-fuels than they are in the bulky lithium-powered batteries.
Even Formula 1, one of the most prestigious international auto race in the world, has committed to using e-fuels starting in the 2026 season. Unfortunately, this won’t really have an impact on their CO2 emissions, which are mostly caused by their international plane travel for competitions.
Porsche has maintained that using internal combustion engines in a climate-friendly manner might aid in the reuse of their current vehicle stock and speed up the decarbonization process.
Porsche has already invested $75,000,000 in a fuel plant that uses energy that is run by HIF Global LLC, making this aspiration rather expensive for them. They intend to start out by producing more than 34,000 gallons of fuel annually. The construction of new facilities in Texas, Australia, and Chile will result in the manufacture of 150,000 barrels of fuel per day during the following several years.
In contrast, in 2021 the US consumed more than 8.8 million barrels of petrol each day. Despite Porsche’s best marketing efforts, e-fuels can’t even scratch the surface of this usage.
Politics in Motion
However, maintaining the legacy of these legendary cars has been enough to stir up some political unrest in Germany.
An outspoken opponent of the combustion engine ban is the pro-business FDP party. Christian Linder, the party’s head and an ardent fan of the Porsche 911, has even recently come under fire for constantly messaging Porsche AG CEO Oliver Blume amid coalition talks.
When the FDP party threatens to obstruct EU law, it is drawing on the underlying sentiments of the nation. In fact, a survey conducted in November 2022 found that three-quarters of Germans prefer combustion engines to battery power for their next vehicle.
Threats to obstruct the vote by Germany, Italy, and Poland are also motivated by the potential harm that the legislation may do to the job market. A combustion engine needs more components and personnel to produce. The concern of losing a job in these areas is partly warranted because the automotive sector is so important to these nations.
E-fuel or an electric vehicle
Despite Porsche and Ferarri’s attempts to convert to e-fuel, electric cars are ultimately more cost-effective and better for the environment. The price of e-fuel will not be sufficiently affordable when compared to the price of EVs, in addition to the obvious costly nature of Porsche and Ferrari cars.
Although EVs have lately cost about twice as much as ICEs, by 2026, it is anticipated that they will be 10–30% less expensive than vehicles powered by fossil fuels.
In contrast to ICE cars, which squander two-thirds of their power as heat, EVs capture about 95% of the energy utilised while driving.
Even while Porsche and Ferrari continue to be revered in the world of automobiles, there are now much more affordable and ecologically friendly alternatives that are grabbing people’s attention.
There are several options available, including the Tesla, the Kia e-Niro, the MG4 and the Ora Funky Car, to suit a range of preferences and requirements for sports, family or compact hatchback automobiles. Numerous new models featuring the promise of long-term sustainability are becoming available on the market at considerably more reasonable pricing.
Whilst Porsche and Ferrari have built some of the most iconic automobiles, their resistance to change might seriously jeopardise the environmental objectives of the EU. Even though they have chosen to use carbon-free fuels, their car models will simply be unable to compete with electric vehicles and the requirements of the future.
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