The European automotive industry, which has stepped toward "green mobility," faces global competition that has received more political support, inevitably affecting competitiveness and directly influencing the market competition.
News from the European Commission headquarters has shown that efforts by not only the automotive industry but also other EU businesses to alert political leadership to challenges have borne fruit. A few days ago, the European Commission proposed several amendments to the EU’s climate goal for reducing CO₂ emissions by 2040, one of which pertains to vehicle production by "relaxing the three-year average CO₂ emission value for the automotive industry."
Specifically, the European Commission announced that it had postponed the proposal of a new EU climate target for the first quarter of this year, automatically delaying the agreement on emission reductions until 2040. The EC confirmed that it would amend the planned EU climate law within this quarter—a long-planned move to set a target of a 90% reduction in emissions by 2040.
The EU’s climate goals in this legislation define how much individual countries must reduce their net emissions compared to 1990 levels.
Like most countries worldwide, the EU has also missed the February deadline to submit its 2035 climate plan to the United Nations, with the Commission stating that it should be derived from the 2040 EU target.
The announcement of proposed amendments related to the automotive industry was welcomed by the European Automobile Manufacturers’ Association (ACEA), which initiated the dialogue with EU policymakers.
"With the publication of amendments on CO₂ compliance targets for cars and LCVs, we see the first major result of the Strategic Dialogue on the future of the automotive industry. The proposal for a new, relaxed, three-year average CO₂ emission value is a step in the right direction, aligning decarbonization goals with real market and geopolitical challenges. It provides much-needed breathing space for car and van manufacturers," ACEA stated.
"However, this must be complemented by significant demand-side incentives and widespread charging infrastructure to address key barriers to transformation. As the latest market data show, demand for zero-emission vehicles is still far from where it needs to be, with BEVs holding only a 15% market share."
Thus, the previously established EU regulatory goals, including the phase-out of internal combustion engine vehicle production by 2035, remain unchanged. The only difference is that the path to achieving these goals will be less stressful.
"We call on the European Parliament and the EU Council to ensure the swift adoption of this amendment," stated Sigrid de Vries, ACEA’s Director General. "The next important step is a thorough assessment of the overall progress of the transformation, focusing on refining the approach rather than changing the final goal, where necessary. This is no less critical for the commercial vehicle sector: With zero-emission commercial vehicles accounting for only 2% of all new registrations, this segment urgently needs an accelerated revision of its CO₂ standards, enabling a reassessment in 2025 based on CO₂ benchmarks."
Source: European Commission, ACEA
Photo: Freepik
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