ACEA: Holistic approach needed to lead zero-emission manufacturing, regulation alone can't get us there

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ACEA: Holistic approach needed to lead zero-emission manufacturing, regulation alone can't get us there

The Serbian Association of Vehicle and Parts Importers shares the statement from the European Automobile Manufacturers' Association (ACEA) following a meeting between European car manufacturers, suppliers, and EU Commissioner for Industry, Stéphane Séjourné. The discussion focused on strengthening the entire automotive value chain, from batteries and critical raw materials to affordable renewable energy for the industry and consumers.

"A holistic approach is needed to achieve zero-emission production—regulation alone will not get us there," was the key conclusion of ACEA representatives.

What Does a Holistic Approach Mean?

A holistic approach is a philosophy and methodology that views the whole as greater than the sum of its parts. It also emphasizes the human aspect—the effort to engage all stakeholders, from those directly involved in production to policymakers shaping market conditions, to drive progress and improvement for everyone.

As highlighted in Mario Draghi’s report, the automotive sector is a prime example of the EU’s "lack of planning and the implementation of climate policies without industrial policies."

Mario Draghi, one of Europe's most respected and influential economists—former President of the European Central Bank and former Italian Prime Minister—was tasked by the European Commission with analyzing the current state of the EU economy and providing directions and guidelines to overcome the deepening crisis and slowdown. Draghi's report unequivocally showed that the automotive sector, a key driver of the EU economy, is a victim of poor planning.

The European automotive sector is currently facing fierce global competition, an intense struggle for critical resources, financing, investments, and customers, along with rising business costs. The geopolitical landscape is shifting radically, and the electric vehicle market—still far from ideal for European manufacturers—brings new challenges.

"To ensure the competitiveness of our sector, we need swift collective action to turn Draghi’s report into concrete measures through the right decisions and reforms," stated ACEA representatives unanimously.

The problem has been identified. The path to the solution is also clear.

"Transitioning to zero emissions means much more than simply switching from one vehicle technology to another; we need a broader ecosystem approach that fosters new partnerships across the value chain," said ACEA Director General Sigrid de Vries after the meeting with Commissioner Séjourné. "The automotive sector is a European success story, but regulating only specific steps within the value chain will not allow our industry to lead this transition and maintain its status as a global production hub. We can fully unleash our competitive advantage only by encouraging and modernizing our approach to regulating production conditions and market dynamics. Europe should be a manufacturing center for zero-emission vehicles, but this requires a shift in mindset and a dramatic revision of how we support and regulate our industry to make it happen quickly."

The leaders of ACEA and CLEPA (the European Association of Automotive Suppliers), encouraged by Draghi’s report, are now voicing their positions more clearly.

"Without targeted support, revolutionary ideas will never reach the road. The future of mobility in the EU depends on our strength and ability to accelerate the industrialization of new technologies through innovation," said CLEPA Secretary General Benjamin Krieger. "Regulations must embrace technological diversity to give engineers the freedom to innovate. A well-structured financing framework, with close alignment between pre-competitive support and instruments such as Important Projects of Common European Interest (IPCEI), can help lower investment costs. We need strong support for early-stage discoveries and a framework that enhances the interaction between different technologies—such as those listed in the Net-Zero Industry Act (NZIA)—to accelerate the deployment of a broad range of sustainable mobility solutions."

The EU's Net-Zero Industry Act (NZIA) came into effect on June 29, 2024. Its implementation comes at a critical time, as the stakes and challenges facing the European net-zero technology sector remain highly complex. It has now become evident that many so-called "Third World" countries are intensifying efforts to expand their clean energy production capacities, increasing competitive pressure on the EU. With NZIA as a legal framework, the EU aims to strengthen its industrial base, enhance economic security, and accelerate the clean energy transition.

Source: ACEA
Photo: ACEA