VEEF 2035: what the Franco-German deal changes for fleets

What is VEEF, and why this deal matters

VEEF stands for "Vehicles running exclusively on Eligible Fuels" — vehicles designed to run solely on renewable, low-carbon fuels. The condition is strict: the eligible fuel must be the exclusive source of propulsion, not merely an available option. This is the category France and Germany propose to recognise in their joint position of 16 October 2026.

For fleet managers, the announcement introduces a potential second route to 2035 carbon neutrality, alongside the electric vehicle. It replaces nothing; it adds an option that could involve renewable bioethanol, sustainable biofuels and e-fuels. The immediate priority is not to act, but to understand the real scope and timeline of this opening.

The three pillars of the Franco-German position

A CO2 trajectory held at -90%

The first pillar confirms a target of -90% CO2 emissions by 2035 compared with 2021 for light vehicles. The reduction trajectory remains ambitious and is not softened by the VEEF opening. This matters: the deal does not dilute the climate target, it broadens the means to reach it.

Recognising VEEF as zero-emission

The second pillar proposes recognising VEEF vehicles as zero-emission, on a par with electric vehicles, within this Franco-German framework. That recognition would remain conditional on the exclusive use of an eligible fuel, not mere technical compatibility.

A "Made in Europe" ambition

The third pillar concerns investment, R&D, production and supply chains within the EU. The goal is to keep the industrial capacity linked to these fuels in Europe rather than relying on imports — an argument about energy sovereignty as much as decarbonisation.

What VEEF is not: neither a step back from EVs nor a green light

It is worth being clear about what this deal does not say. It is not a step back on the electric vehicle, which remains the central technology for automotive decarbonisation in Europe. The Franco-German position asserts a complementary, technology- and industry-driven approach, not a reversal of the EV trajectory.

VEEF is not an EU regulation yet: it is a joint position that still has to pass through the Council and the European Parliament before any application.

Nor is it an immediate green light for fleets. Before any implementation, the deal must be endorsed at EU level, followed by the definition of eligibility, traceability and homologation rules. Until these steps are completed, no vehicle can claim VEEF status.

Traceability and eligibility: the rules are still being built

Recognition of VEEF status will depend directly on the ability to prove, for each vehicle, the exclusive use of an eligible fuel. That requires robust traceability rules, from the fuel producer through to the vehicle on the road. Without such a system, the VEEF category would remain theoretical.

• Defining which fuels count as "eligible" (renewable bioethanol, sustainable biofuels, e-fuels)
• Setting the sustainability thresholds and criteria for each pathway
• Establishing a traceability system from fuel to vehicle
• Specifying homologation rules for the vehicles concerned
• Securing endorsement from the Council and the European Parliament

For players across the bioethanol, biofuel and e-fuel value chains, the coming months will be decisive. Those who start structuring their traceability now will be better positioned once the criteria are set. This is as much a competitiveness issue as a compliance one.

How Heeding supports this evolving regulatory landscape

For fleet managers, the point is not to wait for the final rules before getting organised. Mapping fuel usage, suppliers and proof requirements now makes it possible to approach the next step calmly, whatever shape it eventually takes at EU level.

Heeding offers a free Flash Diagnostic to assess your fleet's readiness for these regulatory shifts and identify the first levers for action.