Fifty industry leaders call on EU to stay firm on car CO2 standards

A group of fifty companies and organizations from the automotive, clean tech, transport, and energy ecosystem that calls itself ‘Industry for 2035’ urges the European Union not to give in to the rising pressure from some car manufacturers and stay firm on car CO2 standards for 2026 and beyond, including the ICE ban from 2035.

“Policies adopted under the European Green Deal, including the CO2 emission standards for cars and vans, have not only given Europe a fighting chance to curb catastrophic climate change but are also a solid basis for long-term investment into the region,” they state. “As companies investing in this transition, we are clear that the 2035 date is both feasible and necessary.”

Big names from automotive and transport

Among these fifty signatories of the manifest are some big names from automotive or transport, like Swedish Volvo Cars and Polestar, American electric pickup start-up Rivian, Europe’s biggest car leasing company Ayvens (the merged ALD-Automotive/Leaseplan), ride-hailing giant Uber, the Danish transport giant Maersk, or the Spanish Astara Group, active as a car importer in 13 European countries.

It’s a clear answer to the European Car Manufacturers Association (ACEA)’s recent call for urgent action regarding the EU’s CO2 emission regulations and to the lobbying of some member states to also postpone the target of zero-emissions for new cars from 2035, arguing the forced transition is too fast.

“A continuous trend of shrinking market share for battery electric cars in the EU sends an extremely worrying signal to industry and policymakers,” said ACEA. “European auto manufacturers united in ACEA, therefore, call on the EU institutions to come forward with urgent relief measures before new CO2 targets for cars and vans go into effect in 2025.”

Dissident voices

Nevertheless, not everybody in the car industry agrees with the ACEA point of view. Stellantis withdrew from ACEA in 2022 and is not calling for a relaxation or delay to the EU’s 2025 CO2 targets. CEO Carlos Tavares says his company has worked hard to cut costs and is ready to compete. “The rules have been known for several years,” he said earlier. “My guys are ready for the fight.”

“Now, we are a few months before the race starts, and somebody says, ‘Hold on, change the rules’,” Tavares told journalists in Turin. “Even if there is a delay in the standards, the global warming issue is still here.”

BMW, still an ACEA member, has also emphasized that the company stands by the goal of consistently reducing CO2 in the transport sector and has prepared itself. However, BMW also insists that the European Union critically and comprehensively review its CO2 fleet legislation, especially the new gasoline and diesel car ban in 2035.

Volvo: ‘2035 target is crucial’

Swedish Volvo is also a member. Although it recently shifted its zero-emission-only target from 2030 to 90-100% of its global sales being either pure electric or plug-in hybrids at that time, it is one of the signatories of the call for the EU to stay firm.

“Electrification is the biggest action our industry can take to cut its carbon footprint,” says Volvo CEO Jim Rowan. “The 2035 target is crucial to align all stakeholders on this journey and ensure European competitiveness. We urge EU policymakers to focus on what actions we need to take to get there, rather than reopening legislation just agreed on.”

Tim Albertsen, CEO of Ayvens, joins him: “We are committed to sustainable mobility, which we would like to accelerate. Such acceleration can only come to fruition if all enabling conditions are in place. This includes a stable, consistent, and supportive regulatory environment. The 2035 ICE ban sets a clear horizon, a crucial element for any acceleration.”

The joint declaration of ‘Industry for 2035’ warns that transport alone will account for almost half of Europe’s greenhouse gas (GHG) emissions in 2030. Cars burning gasoline and diesel account for over 40% of transport emissions.

“Efficient electric vehicles, charged by fossil-free energy and built with sustainable batteries and materials, offer the opportunity to usher in a new era of zero-emission mobility.”

China has already invested for decades

The signatories wave aside the European carmakers, raising their voices in a complaint about China’s fierce competition. “This is why we see fierce global competition and efforts to onshore the EV industry and related supply chain. While China has been strategically investing in EVs for decades, and the US is seeing investment flowing thanks to the US Inflation Reduction Act, the European Green Deal is the long-term vision Europe needs to succeed.”

“The 2035 target gives a clear direction to allow us businesses and all other stakeholders to focus on delivering the required transformation. It also provides the much-needed investment certainty for the future of the European automotive industry.”

“This is precisely why we welcomed the decision by the European Union to go for 100% zero emission new cars from 2035 onward. This decision, which received a democratic mandate from EU governments and MEPs in March 2023, is crucial to provide investment certainty and planning visibility to businesses across the entire automotive value chain.”