Honourable members,
Our automotive industry is key to Europes industrial strength. Two months ago, here in this Chamber, we discussed the future of the automotive industry. I had committed to backing the sector so that automotive companies not only survive, but thrive on European soil.
The Commission is convinced that todays automotive package delivers exactly that.
Let me set the scene and present our proposals to you.
Were in the midst of a huge transformation.
China is aggressively competing in key technologies including EVs and batteries, while the US continues to outpace us in productivity and innovation in at least a number of sectors.
With such fierce competition, the EU simply needs to step up.
Our strategy is clear: decarbonisation is one of our best strategies for success.
We want to be the leaders of the transition to a low-carbon economy because that is what is best for climate, competitiveness and independence.
Decarbonisation is a massive transformation for all our industries, including the car sector.
Weve seen a remarkable shift in this sector, with a promising and realistic pathway towards future success.
Last month, the share of electric vehicles reached 20% in the EU. Transformation, as the number articulates, clearly is underway.
From day one, this Commission has been committed to supporting European industries through this huge shift – in an ambitious, practical and pragmatic way.
This is the reasoning behind the Clean Industrial Deal and the huge simplification exercise were currently undertaking.
And in relation to the car industry more specifically, weve heard their concerns loud and clear.
Honourable Members,
Today, we are stepping in to ensure a successful clean future for the industry with a package that, in my view, truly is ambitious and balanced.
It addresses the industrys concerns, while also maintaining investment predictability in the electric sector and the supply chains, and maintaining our climate neutrality goal.
First, were staying the course towards zero-emissions mobility, while introducing some flexibilities for manufacturers so they can meet their CO2 targets in the most cost-effective way.
The fleet-wide CO2 emission target for 2035 will require a 90% decrease in emissions, abiding by the principle of technological neutrality.
The remaining 10% of emissions will have to be compensated by either clean steel made in the EU or by sustainable renewable fuels.
This compensation mechanism, and this flexibility, in our view, is the cornerstone of this proposal, because it also drives down emissions.
And it creates a win-win: we provide more flexibilities, creating a lead market for clean steel, doing what is helpful for the sector and at the same time ensuring our climate goals are rock solid.
There will be a review in 2035 to ensure were on track to meet our 2050 climate neutrality goal. One thing is sure – as much flexibility as we do want to give, none of us can exactly predict what the mix will be going forward.
Madam Chair,
Second, the proposal has three novelties for the near-term:
1. we will immediately incentivise the deployment of small electric cars, made in the EU. I dont need to explain that this is important for customers, companies and climate.
2. We will provide breathing space for vans in 2030.
3. We will extend the compliance period for the next step to three years, from 2030 to 2032.
Honourable Members,
Weve also heard loud and clear from truck manufacturers.
This is why we propose a targeted amendment to CO2 standards for heavy-duty vehicles. Its going to be an additional flexibility, which will help truck manufacturers meet their 2030 target. While staying on an ambitious decarbonisation path.
And let me be clear here as well: we need to make sure that we create the demand and that we provide them with the loading infrastructure. Because otherwise you cannot go from A to B.
One of the big differences between the car and the truck industries, is that the truck industry is, by its very nature, even more transnational. So we do need to provide them with the ability to drive across countries.
Honourable Members,
Alongside the review of the CO2 standards, we are presenting an initiative to boost the uptake of zero- and low- emissions vehicles in corporate fleets.
Company cars represent more than 60% of new car registrations. There is a huge potential to pull the demand.
With our proposal, Member States must ensure that company cars decarbonise. This means that the share of electric cars, but also the share of plug-ins and range extenders, operated by large corporates, will have to increase as of 2030.
Were also including a sub-target for zero-emission cars only.
Lets be clear: SMEs are not in the scope of this proposal. This concerns only companies with a threshold of 250 employees.
Member States will have differentiated targets, based on the GDP per capita. A one-size-fits-all approach would simply not work.
With this proposal, combining incentives and targets, we will ensure that corporate fleets steer the clean transition. In turn, this will help carmakers in meeting their targets.
This will also help preserve jobs in the EU. We propose that Member States only provide financial support if the company cars are ‘made in the European Union.
We are supporting both decarbonisation, competitiveness and independence.
Honourable Members,
On top of all that, we are also delivering on our simplification agenda, thanks to the “Automotive Omnibus”.
We are removing technical and regulatory obstacles, facilitating demand for electric light commercial vehicles.
We have also heard the sector regarding its predictability needs. This is why were proposing to group any future regulatory requirements into “batches”. We will aim to set a unique “automotive compliance date” to cut red tape for this hugely important sector.
The Omnibus also provides for the definition of “small electric vehicle”. It will be used as a basis to take further measures to support the uptake of such cars, including within our CO2 standards regulation.
This will strengthen the business case to build small electric cars, and reduce the price for consumers.
Thats not all. With the Battery Booster, we are taking measures to make the EU battery industry more competitive.
Were talking about a EUR 1.8 billion investment in battery development.
It creates demand for sustainable and resilient batteries “Made in the EU”.
And it fosters innovation and coordination across Member States.
EUR 1.5 billion comes from the Innovation Fund and will support European battery cell production during the ramp up phase through interest-free loans.
Another 300 million will go to helping us diversify our supply chains in critical raw materials.
Ladies and Gentlemen,
Todays automotive package builds on the exact same approach we took with the Clean Industrial Deal and the 2040 target – a balance between ambition and pragmatism.
Our goal is the same.
We want to make sure we deliver for our industry. Were not going to waver on our climate targets. We are not backing down.
Our job, as policymakers, is not just to get to 2050.
Our job is to get to 2050, bringing everyone – including the backbone of our industrial base – with us.
And, in our view, this is exactly what this package does.
I want to thank many in the room for their extensive input and feedback. I look forward to continuing the conversation with all of you.
Thank you.