The EU has drafted an action plan besides the Decarbonize Corporate Fleets Communication to promote green fleet practices. The EU goal is to enhance the global competitiveness of the European automotive industry.
The action plan:
The Commission proposes an action plan to ensure a sustainable automotive sector, including €1.8 billion for a secure supply chain for battery raw materials, to support the growth of the European automotive industry.
The action plan includes The Decarbonize Corporate Fleets Communication, promotes green fleet practices and encourages Member States to take additional steps towards greener fleets, accounting for 60% of new car registrations.
Through the Action Plan, EU automakers aim to lead the transition to connected, automated, and AI-powered vehicles. A European Connected and Autonomous Vehicle Alliance will unite stakeholders, while regulatory sandboxes and extensive testbeds will allow innovators to test and improve autonomous vehicle technologies, the EU said in a press release.
Innovation and clean mobility transition
The Commission will develop the regulatory framework for autonomous vehicles. These actions will be supported by joint public-private investments of around €1billion backed by the Horizon Europe Programme over the 2025-2027 period.
Flexible CO2 Standards compliance
The Commission is proposing a focus amendment to the CO2 Standards Regulation for cars and vans, allowing manufacturers to meet compliance targets by averaging performance over a three-year period (2025-2027), while maintaining the overall ambition of 2025 targets. This will also accelerate the review process.
The Commission is enhancing demand for European zero-emission vehicles through the Action Plan, focusing on incentives, improved battery health, and repairability, and collaborating with Member States.
Supporting the supply chain, and skilling the workforce
The EU is focusing on cost-competitive EU cell production to cover a significant portion of battery supply and generate value-added along the supply chain. It will support the battery industry with financing, direct production support to companies producing batteries, and non-price criteria.
Besides, the European Fair Transition Observatory will help the EU automotive sector address skills shortages and workforce ageing. The Commission will expand EGF support, increase ESF+ funding, and propose a reinforced initiative to support workers in strategic sectors like the automotive industry. The mid-term review of ESF+ will incentivize reprogramming of funding for the sector.
The impact:
The EU automotive industry will be strengthened by trade defence instruments and ongoing negotiations with partner countries to ensure a level playing field and protect European companies from unfair competition. The Commission plans to enhance the EU automotive sector’s long-term competitiveness through foreign investments and regulatory simplification to reduce administrative burden on European automakers.
