Regulation, CCS and charging infrastructure: this is how the EU is working on green mobility

The automotive industry – good for 13 million jobs and 13 million cars per year – is one of Europe's leading industries. But the sector is struggling. Chinese car manufacturers are entering the market with cheap EVs. For example, the Chinese company MC has seen its European sales double in four years. The transition to emission-free vehicles, digitization, and increasing international competition are putting Europe under pressure.

So while China and the US are investing heavily in battery technology, digitization, and new production methods, Europe must accelerate to maintain its position. Linking mobility sectors is essential to regain a strong position. The Drive Forward Conference (April 8 and 9 at the Automotive Campus in Helmond) aims to provide an initial impetus on precisely that point. Three crucial issues will be the focus of the event. specifically aimed at three crucial issues that determine the future of mobility:

Decarbonization – How do we realize the transition to emission-free vehicles and the accompanying infrastructure? How can we produce cleaner products with new production methods and digitization?
Digitalization - How are AI, advanced driver assistance systems (ADAS), and smart mobility solutions changing the way we transport?
Innovation and competitiveness - How can Europe maintain its technological edge and compete internationally? Decarbonization, Digitization and Innovation & Competitiveness.

In the run-up to Drive Forward, we will be looking at Europe's current position in the automotive industry in three episodes. We will be looking at Europe's current position in each theme. Today: decarbonization.

The transport sector: a source of greenhouse gas emissions

The European Union (EU) has set ambitious targets to drastically reduce CO₂ emissions in the transportation sector. An important milestone is the expectation that CO₂ emissions from road transportation in the EU will peak in 2025, followed by a decrease of approximately 25% by 2035. This forecast is the result of recent regulations, including CO₂ standards for cars and vans, as well as similar legislation for trucks and buses.

Despite these positive prospects, the transportation sector remains a significant source of greenhouse gas emissions. In 2022, emissions were about 26% higher than in 1990, mainly due to growing transportation demand outpacing efficiency gains. Although the adoption of electric vehicles (EVs) is increasing and the use of cleaner fuels is contributing to the reduction of CO₂ emissions, implementation has been too slow to have a significant impact on the overall trend.

Carbon Capture and Storage

Another important aspect of the decarbonization efforts is the development of infrastructure for carbon capture and storage (CCS). Approximately 100 to 120 potential CO₂ capture clusters and approximately 100 storage locations have been identified throughout Europe. The future European CO₂ transportation network could reach a length of 6,700 to 7,300 km by 2030 and could grow to 15,000 to 19,000 km by 2050. Rolling it out could cost between 6.5 billion and 19.5 billion euros by 2030, and between 9.3 billion and 23.1 billion euros by 2050.

There is a significant shift towards electrification in public transportation. In the Netherlands, 27% of the fleet already consists of electric city buses. If the market continues to develop at this pace, sales of electric city buses throughout the EU will exceed those of diesel variants for the first time this year. This trend is driven by ambitious goals set by European cities to meet emission targets by 2030. With VDL and Ebusco, the Brainport region has two major players in the electric bus market, although developments at the Deurne bus builder in particular show that this will not happen by itself.

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Emissions-free vehicles

In line with its ambitious climate goals, the European Union has decided to ban the sale of new cars and vans with combustion engines starting in 2035. This means that from that year on, only emission-free vehicles, such as electric cars and hydrogen vehicles, will be allowed on the market. However, existing vehicles with combustion engines can still be used and traded on the second-hand market. This decision is part of the broader plan of the EU to achieve climate neutrality by 2050. The transportation sector, responsible for approximately 20% of the total CO₂ emissions in the EU, plays a crucial role in this transition. In addition to the ban in 2035, interim targets have been set; for example, by 2030 car manufacturers must achieve a CO₂ reduction of 55% for new cars and 50% for new vans compared to 2021 levels.

Although this ban is a significant step towards a more sustainable mobility landscape, there is also discussion within the EU about its feasibility and impact. For example, the largest group in the European Parliament, the European People's Party (EPP), recently argued for a review or postponement of the ban. They point to the challenges associated with the transition to fully electric mobility, such as the current limited charging infrastructure and the affordability of electric vehicles for consumers.

Stimulating innovation

Nevertheless, the ban remains in place for the time being and the EU is committed to an accelerated rollout of charging infrastructure and stimulating innovation within the automotive industry to facilitate the transition to emission-free mobility. This includes investments in research and development, as well as financial support measures for regions and sectors most affected by this transition.

In short, Europe is making significant progress in the decarbonization of the transportation sector through strict regulations, investments in infrastructure for carbon capture and storage, and the promotion of electric mobility. At the same time, there are still many challenges, such as the growing demand for transportation and the need for faster implementation of clean technologies. The goal of reducing CO₂ emissions and achieving climate neutrality by 2050 remains.

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