Climate change is one of the greatest challenges facing humankind today. The future of our planet is at stake. This was recognised by the international community in Paris in December 2015, where a truly historical agreement on climate change was reached. The Paris Agreement showed that moving to a modern and low-carbon society is not just indispensable, but also now possible.

On the 8 of November the European Commission took a decisive step, with this proposal on new targets for the EU fleet wide average CO2 emissions of new passenger cars and vans,  forward in implementing the EU’s commitments under the Paris Agreement for a binding domestic CO2 reduction of at least 40% till 2030. At the same time as the international climate conference takes place in Bonn, the Commission is showing that the EU is leading by example.  Its action to drive the global fight against climate change is central to the EU’s positive agenda “to help create a Europe that protects, empowers and defends”.

The transition to a modern and low-carbon economy is a key political priority for the European Commission and is embodied in its priority of developing a resilient Energy Union and a forward-looking climate change policy. The objective is to strengthen Europe’s ability to confront the challenge of climate change and improve the quality of life of citizens, while at the same time maintaining and extending the competitive edge of our industries to create jobs, generate sustainable economic growth, and drive innovation in renewable energy technologies. This means striving to become the world leader in innovation, digitisation and decarbonisation.

These developments can also be disruptive, creating new jobs while making others obsolete, requiring new skills and re-training. The transition to a low-carbon economy is therefore both an opportunity and a challenge for EU industry.

The transport sector makes a huge contribution to the EU economy, to employment and to the mobility of citizens. The transportation and storage sector employs more than 11 million people in the EU, more than 5 per cent of total employment and generates almost 5 per cent of EU Gross Domestic Product.

It accounts for about 20 per cent of exports to the EU’s main trading partners. But at the same time, transport is a big contributor to Europe’s greenhouse gas emissions – second only to energy, as well as being responsible for increasingly severe air pollution in our urban areas. All projections suggest that transport activity across Europe will continue to grow. From 2010 to 2050, it is estimated that passenger transport will grow by about 42 per cent. Freight transport is expected to increase by 60 per cent.

This makes achieving a mobility system that is sustainable all the more challenging.

The Package covers the following issues:

1)      Post-2020 CO2 standards for cars and vans: to accelerate the transition towards low and zero emission vehicles, the proposal includes targets for both 2025 and 2030. Proposed 2030 targets are weaker than expected, while the 2025 intermediary targets are a positive step to ensure investments kick-start already now.  Both for new cars and vans, the average CO2 emissions will have to be 30% lower in 2030, compared to 2021; with an intermediate target of 15% for 2025.  The Zero Emission Vehicle objective is only voluntary.

2)      Clean vehicles: The revision of the Clean Vehicles Directive should help cities to procure cleaner cars and further deploy clean mobility

3)      Alternative Fuel Infrastructure: An action plan and investment solutions for the trans-European deployment of alternative fuels infrastructure should support Member States in being more ambitious with their national plans and boost investments

4)      Combined Transport: The revision of the Combined Transport Directive should promote the combined use of different modes for freight transport

5)      Access to market for coach and bus services: The Directive on Passenger Coach Services aims to stimulate the development of bus connections over long distances across Europe and offer alternative options to the use of private cars

The package will establish clear, realistic and enforceable rules to help secure a level playing field between actors in the industry operating in Europe and to increase their credibility. It will also put in place a clear direction of travel towards achieving the EU’s agreed commitments under the Paris Agreement and will stimulate both innovation in new technologies and business models, and a more efficient use of all modes for the transport of goods. Furthermore, the facilitating measures within this package will help to ensure a smooth transition and make the path ahead more predictable. Consumers will only truly make the shift to clean vehicles and other clean mobility solutions if alternative fuels infrastructure is available and if they can make informed judgements about the costs of the different fuel-types on offer and the related total cost of ownership over the full life of the vehicle. Finally, these measures also aim to make new mobility services accessible to all Europeans and to provide workers, communities and components of the value chain in the automotive industry, and others that can lose out from this transition, with new perspectives for the future.

The package wants to includes a combination of supply and demand-oriented measures to put Europe on a path towards low-emission mobility and strengthen the competitiveness of the European automotive and mobility eco-system. The package sets out clear recommendations for Member States to close existing infrastructure gaps and address identified infrastructure needs, as well as outlining action to mobilise finance, where needed, at the EU level. It will thus provide greater policy and regulatory certainty and create a level playing field. Europe is moving forward: the Member States have to follow.