Summary
- Maintaining the 2035 100% zero-emission car target is crucial for providing regulatory certainty for investments in electric cars, battery production, and charging infrastructure in Europe
- Europe is proving less attractive to electric vehicle manufacturers due to uncertainty over the 2035 target, leading to lower investments compared to North America
- Transitioning to EVs is essential for combating climate change as they emit significantly less CO2 compared to petrol or diesel cars
- Reaching 100% electric cars and vans in 2035 is feasible, with battery electric cars expected to be cheaper than fossil-fuel vehicles by 2028
- To achieve the 2035 target, European carmakers and politicians need to commit to accelerating the ramp-up of electric car models and supporting an ambitious industrial strategy for the e-mobility value chain.
Article
The European Union’s 2035 100% zero emissions car target is crucial for the climate, economy, and job creation in Europe. This target provides regulatory certainty for carmakers and the electric vehicle (EV) value chain to invest in electric cars, battery production, and charging infrastructure. The EV investments in Europe have increased significantly with the introduction of EU car CO2 standards, with over 50 European gigafactories planned to produce battery cells by 2030. However, any weakening of the targets could reduce Europe’s attractiveness as an investment destination compared to regions like North America.
Achieving climate neutrality by 2050 requires the EU to eliminate fossil fuels, especially in the transport sector which accounts for a significant portion of the EU’s emissions. EVs emit significantly less CO2 over their lifecycle compared to traditional petrol or diesel cars, making them essential in combating climate change. The car CO2 regulation sets legally binding targets for average emissions from new cars sold by carmakers annually, with a 100% reduction target by 2035. This regulation has been a major driver of investment in the EV value chain in Europe.
A study by BCG analyzed the impact of a shift to EVs on jobs in the automotive sector, showing that jobs lost in traditional fossil fuel industries would be offset by new jobs in the growing e-mobility value chain. However, the feasibility of achieving the 2035 target is not a matter of technical capability but of political willingness and commitment to existing climate and industrial policies. European carmakers and politicians need to be firmly committed to the target and accelerate the ramp-up of electric car models, especially affordable ones.
The transition to electric vehicles is deemed feasible, with battery electric cars projected to be cheaper to buy than fossil-fuel vehicles by 2028. The EU has also mandated that main highways and roads be equipped with fast chargers by 2025, aligning the number of chargers with the uptake of electric vehicles in each member state. European carmakers, including industry giants like Volkswagen, support the 2035 target as they require investment certainty. The EU should focus on an ambitious industrial strategy to attract investments, promote clean local manufacturing, and upskill local workers in the e-mobility sector.
In the upcoming EU legislative term, it is crucial for European carmakers and politicians to prioritize the 2035 target and accelerate the adoption of electric car models, while avoiding distractions like synthetic fuels and biofuels. The new EU Commission should support an ambitious industrial strategy to scale up the European e-mobility value chain, attract investments, promote research and development, and upskill the local workforce. The commitment to the 2035 target and the acceleration of the EV transition are key in achieving climate neutrality and driving economic growth in Europe’s automotive sector.
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