European clean car market set for €20 billion boost from Commission

Furthermore, details about what “cleaner cars” actually are, are apparently still being discussed due to the mismatch of ideas within both the commission and the federal government. Confusingly, Andreas Scheuer, federal minister of transport claimed that vehicles with CO2 emissions of 140g/km should be promoted, enabling buyers of the average SUV to earn a purchase premium. However, this very clearly contrasts with the 95g/km standard that Europe’s fleets are forced to achieve by next year.

In contrast with Scheuer’s viewpoint, Stef Cornelis, traffic expert at Transport & Environment claimed that purchase premiums should only support zero-emission vehicles, and that the idea that cars over 140g CO2/km should be permitted for the bonus is “completely unacceptable”. Stefan Heimlich, chairman of Auto Club Europa confirmed that it would be wrong to promote cars that do not meet the European limit of 95g CO2/km.

According to German newspaper Sueddeutsche Zeitung, the department is still debating the topic.

The background of this debate, of course, is that millions of jobs in the auto industry are at stake with the threat of a pandemic-fuelled financial crisis on the horizon, with roughly 300,000 companies across Europe – from car manufacturers to workshops – and a total of 13.8 million employees.

Furthermore, the industry is facing possibly the greatest paradigm shift ever due to climate change, with road traffic representing around 75% of emissions in the transport sector. The document leaned heavily on this, warning that massive support for the auto industry following the pandemic means borrowing a significant amount of money, placing a “significant burden on future generations.” Therefore, it is crucial that any help made available must work in favour of the environmental interests of the young generation.

The incentive schemes would only make up part of a wider move from the European Commission towards greener technology, incorporating a variety of key aspects:

• Some €40-60 billion could go towards accelerating the developments of new drivetrain technologies, accumulated through an investment fund;
• The Commission’s support programs for the expansion of “electromobility” are set to be doubled;
• A new goal has emerged to build two million public charging points for EVs by 2025.

Automotive insight provider Autovista, reported that the overall market share of electrically-chargeable vehicles in the EU grew to 6.8% in Q1 2020, meaning that continued investment in green automotive technology and infrastructure will be well received.