Energy Union: Commission takes action to reinforce EU’s global leadership in clean vehicles

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Energy Union: Commission takes action to reinforce EU's global leadership in clean vehicles

08/11/2017

The Commission proposes new targets for the EU fleet wide average CO2 emissions of new passenger cars and vans to help accelerate the transition to low- and zero emission vehicles.

The Commission today took a decisive step forward in implementing the EU's commitments under the Paris Agreement for a binding domestic CO2 reduction of at least 40% till 2030. At the same time as the international climate conference takes place in Bonn, the Commission is showing that the EU is leading by example. Commission President Jean-Claude Juncker outlined in the State of the European Union speech in September: "I want Europe to be the leader when it comes to the fight against climate change. Last year, we set the global rules of the game with the Paris Agreement ratified here, in this very House. Set against the collapse of ambition in the United States, Europe must ensure we make our planet great again. It is the shared heritage of all of humanity."

With the entering into force of the Paris Agreement, the international community has committed to move towards a modern low-carbon economy, while the automotive industry is undergoing profound transformation. The EU must seize this opportunity and become a global leader, with countries such as the United States and China moving ahead very quickly. To give one example: EU sales of new passenger cars relative to global sales have decreased from 34% before the financial crisis (2008/2009) to 20% today.To maintain market shares and to accelerate the transition towards low and zero emission vehicles, the Commission proposed today new targets for the EU fleet wide average CO2 emissions of new passenger cars and vans that will apply from 2025 and 2030 respectively.

Today's proposals establish ambitious, realistic and enforceable rules to help secure a level playing field between actors in the industry operating in Europe. The package will also put in place a clear direction of travel towards achieving the EU's agreed commitments under the Paris Agreement and will stimulate both innovation in new technologies and business models, and a more efficient use of all modes for the transport of goods. These proposals will be boosted by targeted financial instruments to ensure a swift deployment.

The CO2 emission reduction targets the Commission proposes today are based on sound analysis and broad stakeholder involvement, from NGOs to industry. Both for new cars and vans, the average CO2 emissions will have to be 30% lower in 2030, compared to 2021.

The Vice-President responsible for the Energy Union, Maroš Šefčovič said: "We have entered an era of climate-friendly economic transformation. Today's set of proposals is setting the conditions for European manufacturers to lead the global energy transition rather than follow others. It will entice them to manufacture the best, cleanest and most competitive cars, hence regaining consumers' trust. This is a major leap in the right direction: a modern sustainable European economy with cleaner air in our cities and better integration of renewables into present and future energy systems."

Commissioner for Climate Action and Energy, Miguel Arias Cañete said: The global race to develop clean cars is on. It is irreversible. But Europe has to get its house in order to drive and lead this global shift. We need the right targets and the right incentives. With these CO2 measures for cars and vans, we are doing just that. Our targets are ambitious, cost-effective and enforceable. With the 2025 intermediary targets, we will kick-start investments already now. With the 2030 targets, we are giving stability and direction to keep up these investments. Today, we are investing in Europe and cracking down on pollution to meet our Paris Agreement pledge to cut our emissions by at least 40% by 2030."

Commissioner for Transport, Violeta Bulc said: "The Commission is taking unprecedented action in response to an ever growing challenge: reconciling the mobility needs of Europeans with the protection of their health and our planet. All dimensions of the challenge are being addressed. We are promoting cleaner vehicles, making alternative energy more accessible and improving the organisation of our transport system. This will keep Europe and Europeans on the move in a cleaner way."

Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, Elżbieta Bieńkowska said: "Our car industry is at a turning point. To maintain its global leadership, and for the sake of our environment and public health, the car industry needs to invest in new and clean technologies. We will foster market uptake of zero emission cars with seamless charging infrastructure and high-quality batteries produced in Europe."

The Clean Mobility Package includes the following documents:

  • New CO2 standards to help manufacturers to embrace innovation and supply low-emission vehicles to the market. The proposal also includes targets both for 2025 and 2030. The 2025 intermediary target ensures that investments kick-start already now. The 2030 target gives stability and long-term direction to keep up these investments. These targets help pushing the transition from conventional combustion-engine vehicles to clean ones.
  • The Clean Vehicles Directive to promote clean mobility solutions in public procurement tenders and thereby provide a solid boost to the demand and to the further deployment of clean mobility solutions.
  • An action plan and investment solutions for the trans-European deployment of alternative fuels infrastructure. The aim is to increase the level of ambition of national plans, to increase investment, and improve consumer acceptance.
  • The revision of the Combined Transport Directive, which promotes the combined use of different modes for freight transport (e.g. lorries and trains), will make it easier for companies to claim incentives and therefore stimulate the combined use of trucks and trains, barges or ships for the transport of goods.
  • The Directive on Passenger Coach Services, to stimulate the development of bus connections over long distances across Europe and offer alternative options to the use of private cars, will contribute to further reducing transport emissions and road congestion. This will offer additional, better quality and more affordable mobility options, particularly for people on low income.
  • The battery initiative has strategic importance to the EU's integrated industrial policy so that the vehicles and other mobility solutions of tomorrow and their components will be invented and produced in the EU.

Next steps:

The Clean Mobility proposals will now be sent to the co-legislators and the Commission calls on all stakeholders to work closely together to ensure the swift adoption and implementation of these different proposals and measures, so that the benefits for the EU's industry, businesses, workers and citizens can be maximised and generated as soon as possible.

Background:

Today's package is part of wider political context to make European industry stronger and more competitive. As announced in our Renewed EU Industrial Policy Strategy that was presented in September 2017, the Commission's ambition is to help our industries stay or become the world leader in innovation, digitisation and decarbonisation.

Today's package is the second mobility package that the Commission presents this year. 'Europe on the Move' was presented in May 2017. It included a wide-ranging set of initiatives aimed at making traffic safer; encourage smart road charging; reduce CO2 emissions, air pollution and congestion; cut red-tape for businesses; fight illicit employment and ensure proper conditions and rest times for workers.

Following the Paris Agreement the world has committed to move towards a low-carbon economy. Many countries are now implementing policies to facilitate transition to cleaner economies. The Commission presented Communication on the implementation of the Paris Agreement commitments in March 2016, followed by A European Strategy for Low-Emission Mobility in June 2016.

The Low-Emission Mobility strategy outlined concrete actions that need to be taken to help Europe stay competitive and be able to respond to the increasing mobility needs of people and goods. The Low-Emission Mobility strategy, contributing to the Energy Union goals, set clear and fair guiding principles to Member States to prepare for the future. Today's proposals are the latest steps in turning these principles into concrete action.

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