ACEA: CO₂ emission targets for cars and vans for 2030 and 2035 are no longer achievable
While vehicle manufacturers continue with electrification, the key conditions for the transformation are still not in place. That is why Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA), addressed the public—primarily EU leaders—through an official ACEA column, outlining five main recommendations for the upcoming “Automotive Package” that the European Commission is set to present on 10 December this year.
“As the Director General of ACEA, I am regularly asked: Is the European automotive industry calling for abandoning electrification and returning to the internal combustion engine? The answer is simply ‘no’,” De Vries made clear at the outset.
The ACEA Director General supported her message with indisputable facts.
“Electrification will lead the future of mobility. According to the International Energy Agency, every fourth new car in the world is electric, and the share of electric cars in global sales is expected to exceed 40% by 2030. ACEA members already offer more than 300 electrified models in the EU, with many more on the way. They have invested hundreds of billions of euros. What more evidence is needed to show that the industry is meeting expectations? Still, I wish the task were as simple as ‘just’ supplying electric vehicles. The reality, unfortunately, is more complicated. The European domestic vehicle market has not recovered to pre-COVID levels; we are missing around three million new cars annually since 2020. Global political and economic developments are putting us all to the test,” she said.
De Vries then outlined ACEA’s five main recommendations:
As the transition to zero-emission vehicles progresses at different speeds across segments (cars, vans, heavy-duty vehicles), a tailored “three-lane” approach is necessary. Commercial vehicles operate under very different conditions than passenger cars, and adoption decisions are driven by total cost of ownership. Vans, predominantly used by small and medium-sized enterprises, are essential tools that enable European businesses to operate and provide services across Europe. This segment needs even more flexibility than passenger cars, as well as adjustments to CO₂ reduction targets. At the same time, for trucks and buses, accelerated implementation of the CO₂ regulation for heavy-duty vehicles is needed to align the transport and logistics sectors, along with short-term measures that prevent penalties caused by factors outside manufacturers’ control.
Today’s CO₂ regulation focuses solely on the supply of new vehicles, without sufficiently stimulating real demand—whether through infrastructure, total cost of ownership, or incentives—and without linking to competitiveness and resilience. Carmakers and van manufacturers need flexibility to avoid multi-billion-euro penalties, and no powertrain technology (e.g., PHEVs, range extenders, hydrogen fuel cells, etc.) that can play a sustainable role should be excluded. Any remaining emissions can be offset in other ways, for example by rewarding manufacturers for CO₂ reduction along the supply chain (e.g., using green steel, aluminum, batteries, etc.), which could stimulate green material production. Measures such as faster fleet renewal can also reduce emissions: with 30% of all cars on EU roads older than 20 years, every new car could save 6–12 tonnes of CO₂ per vehicle.
Customer decisions are primarily driven by factors such as price, taxation, electricity costs, and ease of use. Boosting demand must therefore remain a top priority for the EU and member states. In this context, corporate fleets can be encouraged to act as a catalyst. For cars and vans, incentives—not binding mandates—should take priority. Fiscal incentives at the national level have already proven to be powerful tools for greener fleets in many EU countries. Heavy-duty vehicles require a different formula: shippers and large transport customers should play a stronger role in stimulating demand by gradually increasing the share of shipments carried out with zero-emission trucks. Public authorities also have powerful tools: they should lead by example by prioritizing zero-emission vehicles in all mobility- and freight-related tenders. Finally, charging and refuelling infrastructure remains a major obstacle in Europe: gaps between and within countries are creating a “three-speed Europe,” where the uneven pace of infrastructure development leads to major regional disparities.
The automotive industry provides 2.5 million direct jobs. It generates more than 7.5% of the EU’s GDP—if it were a country, its economic output would be larger than the entire Dutch economy—and is the largest private investor in research and development in the EU. These numbers speak for themselves: we already implement a “invest in Europe” policy daily across more than 250 factories throughout the EU. However, the current discussion about targets or obligations for “Made in Europe” content in vehicles requires careful consideration. Automotive supply chains are global and incredibly complex; any local content requirements must be introduced gradually, with sufficient time and differentiation by segment. They should rely on smart incentives and be designed in a way that respects trade partners and rules. And we must not forget the basics of competitiveness: affordable energy, faster permitting, skilled workers, and financing to build and operate battery production. Local manufacturing will thrive only if Europe remains an attractive place to invest.
With dedicated industrial-policy tools and alignment with key demand-side incentives, the European automotive industry can reclaim its leading position in competitive and profitable vehicle manufacturing across all segments in Europe. But more work is needed given the more than one hundred upcoming legislative acts scheduled for the next five years, each affecting design, production, and investment in the automotive sector. We fully support the initiative announced by Commission President von der Leyen to revive the production of small, affordable vehicles in Europe, where regulatory simplification could have the greatest impact. A more gradual implementation of laws could be another solution. Truck manufacturers, for instance, are asking for delays in the application of certain parts of the Euro 7 regulation. In an industry with long development cycles, regulatory deadlines must reflect industrial and market realities.
Source: ACEA
Photo: AI
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