The European Commission has drafted a plan to allow sales of new cars with internal combustion engines after 2035 if they run only on climate neutral e-fuels, as it tries to resolve a spat with Germany over moves to phase out combustion engine cars. The draft proposal, seen by Reuters on Tuesday, suggests creating a new type of vehicle category in the European Union for cars that can only run on carbon neutral fuels. Such vehicles would have to use technology that would prevent them from driving if other fuels are used, the draft said. The proposal could offer a route for carmakers to keep selling combustion engine vehicles after 2035, the date when a planned EU law is set to ban the sale of new CO2-emitting cars. After months of negotiations, EU countries and the European Parliament agreed the law last year. But Germany’s Transport Ministry surprised other countries this month by lodging last-minute objections to the law, days before a final vote that would have seen it enter into force. The Ministry’s core demand is that the EU allow sales of new cars running on e-fuels after 2035. On Tuesday, it said it was in contact with the Commission to try to reach a solution on an issue being closely watched by Germany’s powerful car industry. “We are interested in a quick clarification, but it must be resilient and binding. We are currently examining this carefully,” a spokesperson said.