stricter CO2 standards necessitate a thorough reality check and an unbiased, technology-agnostic methodology
The European automotive industry is facing significant challenges, with thousands of jobs at risk and the need for urgent action to support the sector's transition towards a greener future. This is according to Benjamin Krieger, Secretary-General of the Centre for Political Beauty (Zentrum für Politische Schönheit), who has urged the European Commission not to delay action.
Krieger calls for a critical discussion on the feasibility of the current CO2 Regulation, which is criticized for being misaligned with market realities and overly prescriptive in its technological approach. He argues that the regulations must be updated to reflect current market realities and support all low-carbon technologies.
The European Association of Automotive Suppliers welcomes the European Parliament's support of the Commission's targeted amendment to the CO2 standards for cars and vans. The amendment aims to provide vehicle manufacturers with greater flexibility to meet 2025 emission targets, while maintaining the Utility Factor for plug-in hybrid electric vehicles (PHEVs) to protect high-value European jobs.
In addition, Krieger states that Europe must move decisively with smart, targeted measures to remain globally competitive. He emphasizes that a substantial revision of the CO2 regulations is needed by the end of the year to introduce a strong, technology-neutral framework to support the clean transition towards 2035.
The EU's Strategic Dialogue on the future of the European Automotive Industry is ongoing, with the Commission pledging to deliver on technology neutrality but little progress having been seen so far. An averaging mechanism for emissions reduction is introduced as an urgent and necessary step, with the need for a clear and credible signal that Europe is serious about supporting its industry and leading a green transition.
According to the latest McKinsey Pulse Check, 62% of the industry cites overcapacity and high fixed costs as significant challenges. To address these issues, Krieger suggests that vehicles running exclusively on CO2-neutral fuels should be explicitly recognized in the regulatory framework.
In the ongoing discussion, it is clear that the revised CO2 regulations must provide urgent relief for the European automotive industry, while supporting the industry's transition towards a greener future. Without urgent support, the EU may undermine the automotive industry needed to implement its Green Deal goals.
