Plans tabled to relax EU's CO2 laws and make it driverless tech leader
European Commission's pledges come as "it is very clear now that it is time for action on a number of priorities" Car makers could have longer to hit CO2 targets and join forces on an autonomous vehicle push as part of plans to make the industry in the EU more competitive and robust. The pledges were announced by European Commission president Ursula von der Leyen ahead of the release of its Future of the Automotive Industry bill on Wednesday. “It is very clear now that it is time for action – action on a number of priorities,” the German said. At the forefront of the pledges is the need to make CO2 targets more fluid and flexible to help those that are struggling but not to impact those that took the financial plunge on electrification earlier. These targets, which measure a car maker or group’s average fleet CO2 levels, will became stricter this year and more so each year to 2035 – much like the UK’s Zero Emission Vehicle (ZEV) mandate. Fines will be dished out to those who miss targets. “The key principle here is balance,” said von der Leyen. “On the one hand, we need predictability and fairness for first movers – those who did their homework successfully. That means that we have to stick to the agreed targets. On the other, we need to listen to the voices of the stakeholders that ask for more pragmatism in these difficult times and for technology neutrality.” As such, the Commission will ask that the targets change from an annual compliance to compliance in three years. However, the targets won't change and will still need to be fulfilled, either through borrowing or banking. This means “more breathing space for industry and more clarity, and without changing the agreed targets”, said von der Leyen. “I am sure that such a targeted amendment could be agreed swiftly by the European Parliament and the European Council," she added. "Because it of course only makes sense if it is agreed quickly.” Elsewhere, the Commission wants to make the EU a key player in the race towards autonomous vehicles, alongside the US and China. To do this, it has pledged to set up an “industry alliance” where European car makers can pool resources to create shared software, computer chips and autonomous driving technology. “We need a big push in software and hardware for autonomous driving,” said von der Leyen, adding that the Commission will “refine the testing and deployment rules" and “help launch large-scale pilots for autonomous driving”. “Scale on this topic matters more than ever before," she said. "The goal is very simple: we have to get autonomous vehicles on Europe's roads faster.” Finally, the Commission wants to make the EU industry's supply chain more robust and resilient. It wants parts to come from local sources and a reduction in the sector’s dependency on foreign markets, especially for batteries. “Here we have a challenge," said von der Leyen, “because while our own production is in the process of scaling up, we see that imported batteries are cheaper. We cannot let EVs become more expensive, but we also cannot afford to create new dependencies.” As such, the Commission will “explore direct support for EU battery producers” while it gradually introduces “European content requirements” for battery cells and components under the already delayed Rules of Origin laws. Von der Leyen concluded: “Let me also stress that today was not the end of the dialogue with the automotive industry. We will keep engaging; we will continue the work strands that we have with the commissioners. There is more to come.”
European Commission's pledges come as "it is very clear now that it is time for action on a number of priorities"
Car makers could have longer to hit CO2 targets and join forces on an autonomous vehicle push as part of plans to make the industry in the EU more competitive and robust.
The pledges were announced by European Commission president Ursula von der Leyen ahead of the release of its Future of the Automotive Industry bill on Wednesday.
“It is very clear now that it is time for action – action on a number of priorities,” the German said.
At the forefront of the pledges is the need to make CO2 targets more fluid and flexible to help those that are struggling but not to impact those that took the financial plunge on electrification earlier.
These targets, which measure a car maker or group’s average fleet CO2 levels, will became stricter this year and more so each year to 2035 – much like the UK’s Zero Emission Vehicle (ZEV) mandate. Fines will be dished out to those who miss targets.
“The key principle here is balance,” said von der Leyen. “On the one hand, we need predictability and fairness for first movers – those who did their homework successfully. That means that we have to stick to the agreed targets. On the other, we need to listen to the voices of the stakeholders that ask for more pragmatism in these difficult times and for technology neutrality.”
As such, the Commission will ask that the targets change from an annual compliance to compliance in three years. However, the targets won't change and will still need to be fulfilled, either through borrowing or banking.
This means “more breathing space for industry and more clarity, and without changing the agreed targets”, said von der Leyen.
“I am sure that such a targeted amendment could be agreed swiftly by the European Parliament and the European Council," she added. "Because it of course only makes sense if it is agreed quickly.”
Elsewhere, the Commission wants to make the EU a key player in the race towards autonomous vehicles, alongside the US and China.
To do this, it has pledged to set up an “industry alliance” where European car makers can pool resources to create shared software, computer chips and autonomous driving technology.
“We need a big push in software and hardware for autonomous driving,” said von der Leyen, adding that the Commission will “refine the testing and deployment rules" and “help launch large-scale pilots for autonomous driving”.
“Scale on this topic matters more than ever before," she said. "The goal is very simple: we have to get autonomous vehicles on Europe's roads faster.”
Finally, the Commission wants to make the EU industry's supply chain more robust and resilient. It wants parts to come from local sources and a reduction in the sector’s dependency on foreign markets, especially for batteries.
“Here we have a challenge," said von der Leyen, “because while our own production is in the process of scaling up, we see that imported batteries are cheaper. We cannot let EVs become more expensive, but we also cannot afford to create new dependencies.”
As such, the Commission will “explore direct support for EU battery producers” while it gradually introduces “European content requirements” for battery cells and components under the already delayed Rules of Origin laws.
Von der Leyen concluded: “Let me also stress that today was not the end of the dialogue with the automotive industry. We will keep engaging; we will continue the work strands that we have with the commissioners. There is more to come.”
