Note: the full recording of the Press Conference of 13 March is available below.
“Thank you for being here today. This is an important moment for the future of Europe’s automotive industry.
Before going into the details of the proposal, let me briefly present the broader framework in which it sits: the Automotive Package.
For the first time, we are bringing together supply-side certainty with demand-side acceleration because industry cannot transform without markets, and markets cannot scale without industry. The automotive package is designed to address key challenges facing the sector, the green transition, and industrial competitiveness in a single, coherent approach. This is an essential part of the challenges of the automotive industry. It will be completed by the upcoming Industrial Accelerator Act, which will be released in the next few months. The corporate fleets proposal, which forms part of the Automotive Package and will be presented by Commissioner Pauro, supports demand by setting national targets for the yearly share of zero and low-emission cars and vans by large undertakings starting from 1 January 2030.
Today, my focus will be on one specific and essential part of this overall framework: the proposal on CO₂ targets, which represents the climate pillar of the Automotive Package.
Let me be very clear: we are not putting into question the European ambition towards climate neutrality. On the contrary, this proposal is about ensuring that our climate objectives remain credible with a strong and competitive European automotive industry.
Europe is facing a triple challenge. China is competing aggressively in key technologies such as electric vehicles and batteries. The United States is moving faster in terms of productivity and innovation. And at the same time, climate change is accelerating.
Our response is to ensure that Europe remains a leader by combining climate ambition, competitiveness and strategic independence. This is not easy, but it is necessary.
Decarbonisation requires a massive transformation. It is, in scale and impact, a new industrial revolution. From day one, the Commission is supporting European industry through this transformation in a pragmatic and workable way, but we fully understand the complexity involved, and we have engaged all of us, with all operators from industry but also from society as a whole.
Let me highlight that the automotive industry is of enormous importance to Europe. It is a pillar of our industrial strength. We must ensure a successful and clear future for this industry.
Today we are stepping in with a package that is ambitious and balanced. It provides:
– investment predictability in the electric sector,
– continued progress towards climate neutrality,
– and a clear pathway towards zero-emission mobility, with targeted flexibilities.
Let me be very clear on the core point: we maintain the trajectory towards 100% CO₂ reduction by 2035.
Under the proposal, manufacturers will continue to deliver a 90% reduction of emissions. 90% of vehicles will be electric. The remaining 10% is not exempted; we allow flexibility – it is fully compensated, through strictly defined contributions: first, the use of sustainable renewable fuels, and second, low-carbon steel produced in Europe. Every tonne of CO₂ is accounted for. There is no free pass. This is the cornerstone of this proposal: flexibility for the manufacturer and compensation mechanisms. There is no weakening of climate ambition; emissions will be reduced by 100%. Every additional emission must be compensated.
This is a win-win: flexibility for car manufacturers, incentives to create clean steel, strong climate ambition and benefits for both industry and society.
Second, we introduce super-credits for small electric vehicles produced in Europe, to support affordability across society and reinforce the European industrial base.
Third, we will harmonise car labelling, including information on battery state of health, when someone wants to buy a second-hand electric vehicle. This will better inform and empower consumers and help them make the best decisions.
Fourth, we had a huge dialogue with truck manufacturers and listened to their specific challenges related to compliance. For this reason, we propose a targeted measure for vans and heavy-duty vehicles, allowing them to collect more emission credits before 2030. This will help them meet their targets while creating demand and supporting the rollout of charging infrastructure, which is different for ordinary cars.
With these changes, we are also putting additional measures in place to boost the uptake of electric vehicles in corporate fleets and make the EU Battery Industry more competitive.
- €1.8 billion will support the European battery ecosystem. It will create demand for sustainable batteries made in the EU, fostering coordination across MS.
- €1.5 billion from the Innovation Fund will provide interest-free loans through the Battery Booster Facility.
- And €300 million will support the diversification of critical raw material supply chains.
Ladies and gentlemen, This automotive package follows the same logic as the Clean Industrial Deal and the 2040 climate target. It is about climate ambition combined with pragmatism, strengthening Europe’s competitiveness and strategic autonomy.
This transition will not be easy. But with clarity, investment and fairness, Europe can lead it, rather than follow it, remaining committed to achieving climate neutrality by 2050.
Thank you.”
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To see the full press conference held on 13 March, please refer to the link down below: https://drive.google.com/file/d/1RivenfzwBnYGbSU6hMWjL8e5rj3v0swy/view?usp=sharing
Contact
Cléa Leclerc-Dupont : clea.leclercdupont@sciencespo.fr
Communication Officer of the Directorate General for Climate Action