EU member states must now act like clockwork on the 2025 CO2 targets

The European automotive industry reaffirms its commitment to achieve climate neutrality by 2050 and move to zero-emission mobility. However, on the way to 2025, manufacturers face increased challenges in meeting CO2 reduction targets, primarily due to weak demand for battery electric vehicles and the deteriorating economic situation.

Ahead of the upcoming Competitiveness Council meeting on Thursday 28 November, the European Automobile Manufacturers' Association (ACEA) is calling on EU member states to put aside differences and agree on a key measure - reducing the cost of environmental compliance by 2025.

ACEA CEO Sigrid de Vries said: “Manufacturers are responsible for the transformation, which is limited by factors beyond their control, such as a lack of charging infrastructure or insufficient purchase incentives. It is positive to see EU Member States discussing concrete and realistic options to alleviate the immediate and excessive compliance pressure, such as introducing multi-year compliance periods or allowing the banking and lending of CO2 credits. Reducing the cost of compliance in 2025, while ensuring a steady transition to green mobility, is key to maintaining the resilience of the European automotive sector and its long-term ability to manage the green transition.”

Information about the EU automotive industry

– 13.2 million Europeans work in the automotive sector.

– This sector accounts for 10.3 % of all manufacturing jobs in the EU.

– The automotive industry brings 383.7 billion euros in tax revenue to European governments.

– The surplus of the EU trade balance reaches 106.7 billion euros.

– The automotive industry generates more than 7.5 % of EU GDP.

– Annual investments in research and development reach 72.8 billion euros, which represents 33 % of total EU expenditure. (Co2AI)