Preparing for Fossil Fuel Phaseout in the Automotive Sector by 2030-2035
European Automotive Industry Calls for Flexibility in Climate Policy
In a joint open letter to EU Commission President Ursula von der Leyen, several European industry associations, including major automotive and industrial groups, have urged a course correction in EU climate policy for the automotive sector.
The associations, which include Acea and Clepa, argue that the current rigid CO2 targets for passenger cars and light commercial vehicles for 2030 and 2035 are "no longer feasible in today's world." They advocate for a technology-neutral approach that supports not only purely battery-powered vehicles but also hybrid drives, hydrogen, and e-fuels.
The lobby groups cite geopolitical upheavals, stagnating demand for electric vehicles, the lack of affordable models, and Europe's strong dependence on China for batteries and raw materials as main reasons for their appeal. They warn that the further weakening of climate requirements could serve China's market for electric vehicles on a silver platter.
The associations argue that the phase-out of the internal combustion engine is unrealistic under current conditions. Instead, they propose a new vehicle category "E-Fuels only," allowing cars to burn only synthetic fuels as a first step.
Acea has demanded a relaxation of emission limits also for trucks since June. They argue that this flexibility is necessary to preserve industrial competitiveness and innovation capacity, as the European automotive industry's competitiveness is threatened due to China's ability to produce electric vehicles much cheaper.
Improving the qualification offer and ensuring a global, competitive environment are also important, according to the letter. It is necessary to strengthen the European supply chain for batteries and other key components.
Observers like Felix Creutzig from the Mercator Institute warn that a further reduction in CO2 fleet emission limits could endanger the transformation and competitiveness of the automotive industry. Sara Matthieu, a Belgian Green MEP, shares this concern and has sent a letter of complaint to von der Leyen, demanding EU investment in battery infrastructure, affordable charging options, and "social leasing."
Not all are in agreement, however. Manfred Weber, head of the conservative EVP faction in the European Parliament, suggests incentivizing people to buy a modern car with an internal combustion engine and scrap their old one.
Volvo in Ghent shows that investment security is sufficient for the transformation of the automotive industry. The company has already made significant strides towards electrification and sustainability, demonstrating that it is possible to meet climate goals while maintaining competitiveness.
The new CO2 requirements for heavy commercial vehicle manufacturers within the EU require a 45% reduction compared to 2019 by 2030, and a 65% reduction by 2035. Whether these targets can be achieved while also preserving industrial competitiveness remains to be seen. The debate continues as the European automotive industry navigates the complex challenges of the 21st century.
