On Wednesday 5 March, Apóstolos Tzitzikóstas, the Commissioner for Sustainable Transport and Tourism, presented his Industrial Action Plan for the European automotive sector. While the measures were fairly well received, the postponement of CO2 emission standards to give manufacturers three years to comply with them did not meet with unanimous approval.
The Commissioner began by pointing out that the automotive sector contributes 7% of the EU’s GDP and directly and indirectly employs some 13.8 million people. “The automotive industry is part of our history and a source of pride, but today it is under threat”, he stressed.
He briefly mentioned the funding that will be made available: - up to €50 billion under InvestEU for clean technologies and mobility; - €1.8 billion from the Innovation Fund for battery manufacturing; - €1 billion from Horizon Europe for connected and autonomous vehicles and batteries; - €570 million under the Alternative Fuels Infrastructure Facility for charging points. He added funding for skills development, including €90 million from Erasmus+ for workforce training, and additional funding for small and medium-sized enterprises (SMEs), the amount of which was not specified.
Company fleets. The Action Plan and its flagship initiatives, detailed on Tuesday 4 March by Agence Europe (see EUROPE 13592/4), are accompanied by a communication to decarbonise this part of the market. Company registrations account for around 60% of all car registrations (see EUROPE 13572/7). The Commission has put forward a number of suggestions to the Member States, particularly in terms of taxation and urban mobility.
“These measures will complement our efforts to decarbonise mobility in cities while also supporting carmakers during this challenging period”, said Thomas Lymes, who represents the interests of the Eurocities network of European cities.
By the third quarter of 2025, the Commission will launch an initiative to accelerate the deployment of zero-emission vehicles in the rental fleets of certain airports, in order to ensure improved connections to the electricity grid and facilitate the deployment of recharging infrastructures used by companies.
“In recent years, we have focused on the deployment of supply. [...] The Commission’s plan will finally guarantee outlets through measures to support demand, in particular with legislation to make corporate fleets greener”, enthused MEP Pascal Canfin (Renew Europe, French).
Diverging opinions on the postponement of CO2 emission standards. Announced by the President of the European Commission, Ursula von der Leyen, on Monday 3 March, the three-year deadline granted to carmakers and the lifting of penalties are either too lenient for the industry, or not lenient enough.
Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA), said that the measure “holds the promise of some breathing space for car and van makers, provided the much-needed demand and charging infrastructure measures now also actually kick-in”.
Within the EPP, there is no unanimity either. While German MEP Peter Liese welcomed the fact that the proposal “ensures that the EU’s climate goals remain in place”, “the EPP Group had hoped for a clear commitment to swiftly revising the internal combustion engine ban”. “I regret the ideological decision of the previous mandate to go all electric. It is important to have a technology-neutral approach to encourage innovation”, said Frenchman Laurent Castillo.
“We consider the concept of ‘electric-only’ to be an incredible advantage for the Chinese”, also regretted Guido Guidesi, Chair of the Automotive Regions Alliance (ARA) of the European Committee of the Regions.
“Tariffs and other global headwinds will not be alleviated by slowing down electrification. This will only give China an even greater lead on electric cars”, retorted Julia Poliscanova, of the Transport & Environment (T&E) think-tank.
Similarly, Agustín Reyna, Director General of the European Consumers’ Organisation (BEUC), believes that this measure “really sends the wrong signal to consumers”. “This will simply disincentivise car makers from providing new, more affordable models until later in the decade. Consumers’ choice will be reduced to only more expensive options”, he lamented.
Read the Action Plan: https://aeur.eu/f/fr3;
Read the communication on corporate fleets: https://aeur.eu/f/fr4 (Original version in French by Anne Damiani, with the editorial team)