The European Commission (EC) proposed an action plan for the automotive industry this Wednesday, ensuring fair competition conditions for a sector facing “a critical turning point”.
The Commission has responded to calls to relax the targets for carbon dioxide (CO2) emissions set for this year. “The Commission will propose this month a specific amendment to the CO2 Standards Regulation for passenger cars and light commercial vehicles. The amendment, if adopted, would allow car manufacturers to meet their compliance targets by averaging their performance over a three-year period (2025-2027), enabling them to offset any shortfalls in one or two years with excess results in the other year(s), while still maintaining the overall ambition regarding the targets for 2025”, states the note from the European Commission.
Thus, fines imposed on the automotive industry for failing to meet emission reduction targets will only be applicable starting in 2028.
Regarding the support plan for the automotive sector, Brussels has defined five pillars: innovation and digitalization, transition to clean mobility, ensuring competitiveness and resilience of the supply chain, improving skills and addressing social dimensions, and lastly, ensuring fair conditions and a competitive business environment.
The Commission also revealed that with the aim of maintaining a strong European production base and avoiding strategic dependencies, it will allocate €1.8 billion to create a secure and competitive supply chain for battery raw materials, which will help support the growth of the European automotive industry.
“There is enormous untapped potential in the global market regarding innovation and clean solutions. I want our European automotive industry to take the lead. We will promote domestic production to avoid strategic dependencies, especially concerning battery production. We will maintain our agreed emission targets, but with a pragmatic and flexible approach. Our mutual goal is a sustainable, competitive, and innovative automotive industry in Europe that benefits our citizens, our economy, and our environment.”, said the President of the Commission, Ursula Von der Leyen, in the statement released.
The document released today results from a month of strategic dialogue between the executive and stakeholders, aiming to ensure a strong and sustainable automotive sector and help unleash its innovative potential, in an industry that represents 7% of the European Union (EU) GDP and is at a “crucial” moment in its transition to zero emissions by 2035.
