Recommendationsofthe EU-Japan Business Round Table
to Leaders of Japan and the European Union
15 November 2022
Working Party 4
Environment and Sustainable Development

Working Party Leaders:Dr. Mark Pleško
President
Cosylab Inc.

Mr. Norihiko Ishiguro
Senior Executive Vice President
NEC Corporation

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Introduction
The one-sided offensive that suddenly broke out in Europe in February of this year has
had an unprecedented impact on not only the international energy market andprocurement, which has included a sharp rise in the prices of fossil fuels and electricity
as well as the diversification of energy supply sources in many countries, but also thefood supply chain due to food and fertilizer shortages.
Achieving climate neutrality by the middle of this century is a universal challenge facing
all of humankind and we, the BRT, hold strong expectations for both governments tocontinue prioritizing the fulfilment of their roles as world leaders in the face of theselatest threats by promoting measures to further accelerate the transition to clean andsustainable energy as well as the diversification of energy sources.
The BRT will also support measures by and cooperate with both governments to createa resource-efficient and cyclical economy, consider and maintain biodiversity and othernatural capital, and ensure food security.
The BRT supports initiatives led by the EU-Japan Green Alliance that promote
cooperation on energy transitions, environmental protection, sustainable finance, andthe facilitation of energy transitions in third countries, and we will strive to realize theabove by cooperating with specific measures taken by the Alliance.
By taking the above actions, we are determined to cooperate with the promotion ofefforts to “nurture a prosperous city where individuals and society are in harmony”
through the realization of resilient and comfortable lifestyles in addition to “Green
growth strategies for coexisting with the earth and protecting the future.” We recognizethat this endeavour will be extremely challenging, and that innovation using
discontinuous technology and large-scale lifestyle changes will also be imperative. We
will approach these challenges with unwavering determination and are committed toplaying a proactive role in resolving them. European and Japanese industries wish to
make the following recommendations, including practical measures that should betaken to achieve our objectives while simultaneously promoting economic growth andjob creation as well as plans for acquiring the necessary technologies and solutions.

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Recommendations from both
European and Japanese industries
Environment: “Green growth strategies for coexisting with the earth andprotecting the future”
WP-4/#01/EJ to EJ Measures and policies of both authorities against climatechangeThe BRT calls on the EU and Japanese Authorities to:•find technologically and economically viable options and take a flexible approachwith a reasonable and realistic transition period towards achieving an ambitious
target for a decarbonized society.

•facilitate and promote high-level dialogues with authorities of emerging countries,
strongly recognizing the magnitude of impact that progress towards
decarbonization in emerging countries has on global environment. To solve issues
which emerging countries are having toward that, we also request both authorities
to accelerate support such as sharing knowledge and effective solutions withemerging countries regarding technologies and solutions on decarbonization
accumulated in EU and Japanese industries.

•

take measures based on the three integrated perspectives of climate change
countermeasures, biodiversity conservation, and the transition to a circular
economy. Decarbonization-biased efforts should not result in the loss of
biodiversity, and linear economic models must not impede its sustainability.

•

demonstrate strong leadership towards the swift creation of a platform that can beused to share CO2 emission data and introduce common rules to every company
involved in the supply chain for the production of raw materials, parts
manufacturing, product manufacturing, sales, and the transportation that connects
them. We also request that both authorities provide assistance as necessary anddevise rules that will enable SME to easily calculate, comprehend, and provide
other companies with data for their own CO2 emissions. To this end, global efforts
and cooperation across companies, industries, and countries will be crucial, andwe therefore call on both authorities to develop strong initiatives and further
strengthen cooperation with industry.

•

promote measures prioritizing resource recovery that emits fewer greenhousegases.

•

formulate cross-country policies with all sovereign states that are major
contributors to climate change to ensure that domestic industries in the EU andJapan are not penalized more harshly than industries in third countries.

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•promote carbon-neutral, sustainable energies while conducting research anddevelopment of biofuels and E-fuel production and usage as well as other new
immature energies towards the commercialization of carbon neutral energy
technologies and the like.

•introduce WTO compatible subsidies or incentive schemes including the impositionof fees on end-users that reflect the indirect benefits to society brought about by
investment in decarbonization by industry.

•take effective measures to encourage both governments to introduce sustainableenergy contributing to decarbonization to the public sector, including government
procurement rules.

•

facilitate further cooperation between the EU and Japan to promote quality
infrastructure systems in partner third countries further utilizing frameworks suchas “The Partnership on Sustainable Connectivity and Quality Infrastructure
Between Japan and the European Union” concluded in 2019.

•facilitate further hand-in-hand cooperation between the EU and Japan in the areaof sustainable finance as a catalyst towards a decarbonized society with the aim
to coordinate and promote a consensus in international fora and to make taxonomy
operational and usable for business while maintaining economic feasibility.
ensure that the measures taken by both authorities will not lead to stagnation of
corporate investments in R&D and capital, protectionist trade, and/or the stifling ofinnovation. In view of this, we believe that the potential impacts and implications of
the application of a carbon border adjustment mechanism, which is currently being
discussed by the EU, should be carefully assessed and fully understood.

•

The BRT believes that:•

the EU and Japan must remain forerunners in this area by representing the global
conscience of all humanity and actively promoting this view to all other industrial
countries worldwide to ensure they share the same measures and adopt the same
rules and regulations to achieve a carbon-neutral economy and implement
appropriate measures to accomplish this goal.

•

to reduce CO2 emissions across the entire supply chain, it is necessary toaccurately comprehend not only the CO2 emissions of each company but also theCO2 emissions of the supply chain as a whole (e.g., procured goods, services,transportation, delivery). As such, there is an urgent need to develop common rules
and mechanisms. Many large companies in Japan and the EU have been able tocomprehend their own CO2 emissions through long-term efforts, and weunderstand there is a pressing need to develop rules that even the small- andmedium-sized enterprises comprising the supply chain will be able to use to
calculate and comprehend their own CO2 emissions as well. We also believe thatin the future it will be necessary to consider calculating the reduction amount as
the contributed amount in cases in which companies produce, sell, and provide
products and services by utilizing the targeted supply chain. In addition, at theGreen x Digital Consortium established by JEITA in October of last year, bothcompanies that provide digital technologies and those that use them gathered
together to promote activities aimed at deepening discussions on the creation andimplementation of new digital solutions that will lead to corporate behavioural

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changes as well as the transformation of industry and society. And the European
Green Digital Coalition (EGDC), which was launched in March 2019 aiming toharness the enabling emission-reducing potential of digital solutions to all othersectors including activities in developing measure of net reducing contribution by
ICT(scope 4), is actively working. We encourage both authorities to make further
use of such industrial activities and knowledge.
•

the only way to achieve ambitious climate targets for 2030 and to promote a
circular economy is close joint collaboration aimed at reducing the complexity ofmarket entry (especially for strategic sectors such as waste and energy), promotinginternational standardization as well as simplifying and accelerating theadministrative processes to obtain permission for new investments andtechnologies.

•

the EU and Japan need to cooperate in moving towards electrification of the gridand achieving decarbonization of carbon-intensive sectors such as building
sectors (e.g., by rapid promotion of heat pumps) to achieve a carbon neutral
society.

•in sustainable finance, enabling activities and transitional technologies willcontinue to play an important role in mobilizing all necessary means to achieve theobjective of sustainable finance, including the zero-emission ambition.

WP-4/#02/EJ to J

The Japanese Government’s development of policies
toward the realization of carbon neutrality

The BRT calls on the Japanese Authorities to:•recognize that energy data management without equipment, as exemplified byvirtual power plants (VPP) and resource aggregation services, also plays a majorrole in contributing to the realization of carbon neutrality, and to develop policies
to accelerate the expansion of such forms of management accordingly. The
specifics of this are as follows.
✓ Target projects for the Green Innovation Fund are currently being considered,and VPP and resource aggregation services should be included as Green
Energy. We also believe the Japanese government should include electric
power supply and demand infrastructure utilizing distributed power supply
under also the theme of “Transformation of the Industrial Structure.”✓ To promote the introduction of distributed energy sources by companies, itwill be imperative to not only utilize but also realize the widespread use ofstorage batteries as they hold the key to controlling fluctuations in electric
power generated by renewable energy. Moreover, the provision of an
appropriate level of subsidies should be promoted and expanded to support
and accelerate the introduction of storage batteries by companies.
✓ The application system for reverse power flow and self-consignment, whichcurrently differs among power companies, should be unified. In addition, theapproval process for self-consignment across areas (between powercompanies) must be simplified.
✓ To clarify the contribution and value of companies that use distributed powersources to achieve carbon neutrality, policies should be developed toWorking Party 4: Environment and Sustainable Development
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provide incentives to such companies in terms of carbon taxes, bordercarbon taxes, emissions trading, and more.
✓ implement policies to encourage companies that own distributed power andresource aggregation operators to enter the market and expand
transactions involving distributed power sources since current transactionsin the supply and demand adjustment market are overwhelmingly
dominated by power from thermal power plants. Specifically, this will involvethe introduction of quotas for the use of distributed power sources in the
supply and demand adjustment market, incentives for the trading of
distributed power sources, and the development of preferential bidding.

The BRT believes that:•since the plan devised by the Japanese Government (i.e., Agency for Natural
Resources and Energy’s 6th Plan) calls for 38% of the power sourcecomposition in 2030 to be covered by renewable energy, an adjustment
capability of 20 million kW is supposed to be required as maximum considering
output fluctuations derived from renewable electricity. Meanwhile, as there arevarious uncertainties when it comes to achieving this ambitious plan, we
recognize that it will be necessary to promote in parallel and on a large scale
the provision of power supply from companies that own energy resources; thatis, the utilization of distributed energy resources. We view this as an effectivemeans to accelerating the introduction of renewable energy with the aim ofachieving the plan.

•

including “the actual situation of providing distributed energy resources owned
by companies” in the requirements of the Task Force on Climate Related
Financial Disclosure (TCFD) will enable companies to be evaluated fairly andderive value by reducing CO2 and making social contributions todecarbonization.

•

evaluating the Japanese government’s policies for developing a two-trillionyen fund as part of NEDO (i.e., Green Innovation Fund) and using this fund tosupport companies with everything from R&D to proof of concept and social
implementation will make it possible to accelerate structural transformation in
the energy industry sector and innovation through bold investment.

•

while the targets for allocation of this fund are now being considered, with a
primary focus on hydrogen, renewable energy, EV, and other equipment andhardware, recognition should be given to the fact that taking full advantage ofdigital transformation that utilizes IT and software is also very effective.

•

it is essential to expand virtual power plants (VPP) that manage multiple
distributed energy resources together and enable them to function like a single
power plant as well as resource aggregation services that improve efficiency
and to realize optimization by matching surplus power generated fromrenewable energy to the market.

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WP-4/#03/EJ to EJ Promotion of resource efficiency and the circular economy
The BRT calls on the EU and Japanese Authorities to:•

avoid the pursuit of resource efficiency through exceedingly regulatory
approaches, which could inhibit innovation and economic growth, and instead use
promotion through voluntary efforts by stakeholders with associated incentives.

•

pursue resource efficiency from the viewpoint of an international circulation system
based on the fact that movement of secondary raw materials across borders is
now the norm. On the other hand, as global supply chain risks become apparent,
we also call on both authorities to develop a policy promoting the optimization ofboth international and regional circulation since we believe it is essential to also
promote regional circulation, as well as international circulation, from theperspective of maintaining and securing economic security.

•

promote alignment and simplification of related standards and regulations of
products made of renewable resources contributing to the circular economy, withincentives for R&D and commercialization.

•

recognize that Japan and the EU should not only move forward with efforts aimed
at improving resource efficiency but also work together to formulate consistentnational and international rules and treaties to this effect.

•

take measures to visualize the entire utilization cycle from the manufacturing ofproducts to their shared use, reuse, recycling, and disposal as well as to realize
and accelerate supply and demand control in resource circulation through means
such as matching products and assets with users by utilizing the traceability of raw
materials, parts and products, and AI.

•

specifically target SMEs as they account for a large number of entities and jobs
and thus contribute significantly to the issues at hand.

•continue to play a leading role in the Global Alliance on Circular Economy andResource Efficiency (GACERE) launched in April of last year with the aim ofproviding a global impetus for initiatives related to the circular economy transition,
resource efficiency, sustainable consumption and production patterns, andinclusive and sustainable industrialization.

The BRT believes that:•

resource constraints are likely to inhibit economic growth over the medium to longterm. This is why it is imperative to improve the efficiency of resource use.

•the circular economy holds the potential to create business opportunities that willlead to additional economic growth and job creation in the future.

•

discussions on resource efficiency and the circular economy must go beyond
recycling and other aspects of pure reuse to cover a wider range of concepts ofproduct longevity, frugality and efficient use, thus impacting manufacturers, service
providers, and other companies, to consider the extension of product life, thesharing of services, and the provision of goods and services through operationalbilling.
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the key to fully harnessing the potential of renewables is not only the requiredenergy efficiency but also the optimization of energy use by leveraging digitization,energy management & analytics, demand flexibility, batteries, hydrogen, and more.
Regulatory frameworks should foster these pursuits by levelling the playing field(i.e., pricing externalities) to enable fair competition and the pursuit of the mostsustainable and competitive solutions.

•collaborations by companies, administrations, and industries that transcend
existing frameworks are integral to realizing the circular economy. Until now, there
have been individual supply chains for each company or industry, and data on
production, logistics, and sales have remained separate. To make the circular
economy a reality, we believe it is important to link and control data such as supply
and demand and the usage of a variety of raw materials and products beyond
existing frameworks.

•

product design and the procurement of raw materials based on the premise ofreuse of products and resources are important. To this end, it is imperative to havea mechanism that can be used to trace data on the original components of products
and the place of origin of raw materials.

•

the pursuit of resource efficiency through excessively restrictive approaches could
inhibit conventional economic growth. Therefore, it is desirable to choose anapproach that will enable economic growth by combining incentives withreasonable regulation, such as the promotion of resource efficiency throughvoluntary efforts by stakeholders.

WP-4/#04/EJ to EJ Natural Capital and Biodiversity
The BRT calls on the EU and Japanese Authorities to:•continue to lead international discussions towards COP 15 of the Convention on
Biological Diversity and to actively promote the development of 30by30, especiallyfor other effective area-based conservation measures (OECM), which will be thekey to its achievement. In addition, we request both authorities to further promote
the accumulation of data and the development of infrastructure related tobiodiversity, and to actively develop environmental measures from the viewpointof total optimization that can be implemented over the long term as well as naturepositive measures and models in third countries under circumstances in which theglobal economy is further blocked.

•

continuously promote the study and development of the natural capital value offorests from the perspective of biodiversity. We also call on both authorities toguide and promote the creation of highly reliable common rules based oninternational organizations and government-led standards for the mechanism ofprivate initiative (i.e., voluntary credit) since the carbon offset credit system for CO2
forest absorption will need to be further developed and utilized from the viewpointof climate change measures as mentioned in the previous section.

•

develop policies that encourage companies and business to support R&D andcapital investment aimed at providing solutions and services contributing to thesustainability of agriculture, reducing environmental load, implementing measures

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against climate change, and responding to the aging of the working population andthe resulting loss of know-how by using the latest AI and digital technologies that
replicate the techniques of skilled farmers. More specifically, tax incentives, theprovision of appropriate subsidies, and support for on-site implementation.
The BRT believes that:•

it is valuable that the Japanese and EU Authorities are leading the international
debate towards COP15 of the Convention on Biological Diversity and this is muchappreciated. We will also support and continue to actively cooperate withmeasures to develop the 30by30 Roadmap and achieve the goals prior to theagreement of the Post-2020 Biodiversity Framework.

•

forests are naturally one of the core environmental assets that not only provide
global environment and ecosystem services but also bring immeasurable benefits
to humankind (e.g., food supply, water circulation, climate stability). We also
understand that management of forests owned by individuals and companies is an
important factor for OECM. In addition, it is imperative to continue working to
improve and utilize the carbon offset credit system for CO2 forest absorption.

•

demand for agricultural products is expected to further increase worldwide due topopulation and economic growth in a harsh global environment marked by climatechange, global warming, soil pollution, and soaring water and fertilizer prices, but
we also understand it is necessary for agricultural production to tackle various
issues such as developing measures against decreases in the number of
producers, reducing environmental burden, and ensuring the safety of food. In
particular, we should combine agronomics (i.e., agricultural science) withadvanced digital technologies such as AI to promote accurate, efficient,environmentally friendly, and profitable farming as well as expand sustainableagriculture in every country.

Secure & safe cities and their management:“Nurturing prosperous cities where individuals and society are inharmony”
WP-4/#05/EJ to EJ : Realization of a resilient and comfortable life

The BRT calls on the EU and Japanese Authorities to:•address with utmost priority the development and implementation of secure, safe,
resilient, and high-quality city infrastructures that consider life-cycle cost, which isessential for realizing sustainable and inclusive societies as well as the services
associated with such infrastructures. This is necessary because city design andmanagement have a serious and tremendous impact on creating attractive andideal residential circumstances compatible with both societies and people.
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•continuously promote the functional improvement of local cities/rural areas and the
distribution of functions along with the development of urban cities. In particular,
as stated above, increasing the use of renewable energy is essential for realizing
decarbonization; however, appropriate energy distribution to local cities/rural areas
including the introduction of microgrid technologies should also be promoted fromthe perspective of decreasing the cost of power transmission and the dispersion ofrisks in times of disaster. Likewise, there is also a need to implement policies toaccelerate initiatives towards “local production for local consumption” from thepoint of view of promoting the circular economy and reducing CO2 emissions.
Greening cities should be promoted to improve air quality, lower GHGs andultrafine dust particles in cities, create better livelihoods, and facilitate temperature
regulation.

•

take the lead in promoting market introduction of energy conservation and energy
efficiency technologies and their supporting infrastructures as well as encouraging
the alignment and simplification of related standards and regulations. We also ask
both authorities to promote the development of advanced technologies that boost
energy efficiency through best practices as well as to implement stimulus
measures such as investment in methodologies and to promote disruptive
innovation in cities, which will have a particularly significant impact on the above.
This includes the shifting of social systems and lifestyles by adopting the latest
technologies from ICT breakthrough innovations and the promotion of networking
through the utilization of digital technologies. One excellent example of this is smart
lighting that renders streetlights intelligent by increasing the amount of light only
when cars and pedestrians require it. This results in not only energy conservation
but also measures for light hazards and the improvement of safety at night.

The BRT believes that:•

resilient and comfortable cities require a wide range of basic, high-quality
infrastructure and associated services to be viable and sustainable, andinfrastructure development is vital for economic growth because it can create jobs,
alleviate poverty, and improve quality of life for urban residents. In addition, as
climate-related natural disasters thought to be caused by global warming such as
hurricanes, droughts, and wildfires become more intense and frequent, cities willfind themselves damaged by large-scale disasters, thereby leading to massive
amounts of CO2 being emitted as a result of reconstruction projects required torebuild infrastructure. Therefore, from the perspective of preventing global
warming, we believe that it is also extremely important to accelerate theintroduction of disaster prevention and mitigation solutions that make infrastructure
more resilient to disasters.

•

issues such as congestion and the depopulation of cities can result in lowering thelevel of services and sustainability of cities. On the other hand, it is possible thatthe distribution of functions and people to local cities/rural areas from a state ofextreme concentration in urban cities will accelerate along with advances in digitaltechnologies under the new normal in the post COVID-19 era. We believe that thiswill lead to a certain level of progress in the mitigation of urban issues caused byovercrowding and in the reassessment of social values and changes in people’s
behaviour leading to improvements in quality of life, including work-style reforms,

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in addition to reducing the risk of infectious diseases. The Digital Garden City
Nation Initiative currently being promoted by the Japanese Government aims toenable all citizens, regardless of place of residence, age, or gender, to live a
fulfilling life that combines comfort and peace of mind according to their lifestyles
and needs and to create a society in which citizens and businesses can enjoy thebenefits of digitalization through the creation of new services that contribute to theimprovement of work and life in rural areas, the improvement of sustainability, andthe realization of well-being, thereby creating a society where everyone can live
conveniently and comfortably anywhere. BRT supports this initiative.

WP-4/#06/EJ to EJ: Promoting optimization of city management
The BRT calls on EU and Japanese Authorities to:•take the following steps and measures from the point of view of accelerating
optimization of city management through trusted City-as-a-Service and data-driven
solutions that provide the most suitable services to residents, healthy buildings,
and healthy precincts.
✓ Promote policies to introduce and utilize innovative digital technologies forrealizing a sustainable society. Specifically, we request both authorities toreview and introduce taxation systems and laws/regulations that encouragecompanies to make investments in R&D and capital. In addition, we ask both
authorities to introduce a policy to encourage businesses to recognize andreduce the total cost of ownership as opposed to capital expenditures only.
✓ Promote policies to develop infrastructure for data utilization. More specifically,a policy to accelerate the introduction and utilization of City Operating System(OS). A good example for the development of smart cities is the use of
FIWARE – the evolving, open-data utilization platform developed throughEuropean initiatives that enables IT vendors to freely add new services to an
open Application Programming Interface (API). We call on both authorities tosecure a sufficient budget to urge each government in Europe and each local
government in Japan to actively introduce, use, and share data utilization
infrastructure. In addition, we request both authorities to implement the following
measures to promote the free flow of data and AI utilization, which will be key
to the full functioning of data utilization infrastructure.
➢ Demonstrate leadership and strive to strengthen further cooperation withbusinesses to promote the free and reliable flow of data across borders.
➢ Promote the utilization of AI by placing the highest priority on compliancewith relevant laws and regulations in each country/area and on respect forhuman rights. We also request that both authorities cooperate with theprivate sector in establishing and implementing policies and guidelines
aimed at preventing and addressing human rights issues. We ask both
authorities to refrain from introducing regulations that strongly andnegatively impact or suppress the development and utilization of AI
technologies.

•

promote optimization of city management at various levels of scale (e.g., building,neighbourhood, infrastructure).
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The BRT believes that:•city management will become primarily focused on high-level operations ofhabitation and mobility through City as a Service, which provides services suited
to the diverse values of residents by combining various types of big data tovisualize the city’s circumstances and predicting possible changes in cities throughAI analysis. We also believe that data-driven city management utilizing digital
twins, which enable low-cost and speedy execution of large-scale analysis andsimulation that are difficult to conduct in real cities, will be particularly effective indisaster prevention planning and the measurement of policy effectiveness.

•

the free and reliable flow of data across borders and the utilization of data acrossdomains to address social issues while enhancing data security and privacy arenecessary from the perspective of accelerating the above.

•its duty is to support the Japan-EU Digital Partnership launched in May of this year
and to cooperate with each specific measure aimed at promoting the optimizationof urban city management.

WP-4/#07/E to EJ Increase the rollout of EVs and the necessary infrastructure
The percentage of EVs in new car sales in Japan in 2020 is about 0.6%, which is quite
low compared to other countries. The situation in the EU regarding the EV transition is
only slightly more advanced than in Japan, with ACEA claiming that around 24.5% ofcars sold in the EU are alternatively fuelled. This figure does not differentiate between
hybrids, EVs and hydrogen-fuelled cars.
The BRT calls on the EU and Japanese Authorities to:•

Impose stricter CO2 standards for cars and vans.

•

Introduce Alternative Fuels Infrastructure Regulation, aiming to increase thecoverage for EV charging and hydrogen refuelling along the main transport networklines (like the EU’s Trans-European Network for Transport for Transport: TEN-T)
to maintain long-distance viability of alternatively fuelled vehicles.

•

Introduce charging infrastructure requirements for existing, renovated and newly
built buildings with different targets per category.

The BRT believes that:•

In its Green Growth Strategy accompanying the 2050 carbon neutrality, theMinistry of Economy, Trade and Industry (METI) has decided on a framework suchas “Comprehensive measures will be taken to achieve 100% of new passenger
vehicle sales being for vehicles that are electrically driven (Electric Vehicles, Fuel
Cell Vehicles, Plug-in Hybrid Vehicles, Hybrid Vehicles) by 2035. With regard tocommercial vehicles, for light-duty vehicles of 8 tons or less, the government willtake comprehensive measures, including the introduction of vehicles andpromotion of infrastructure development, aiming for 20-30% of new vehicle sales
to be electrified vehicles by 2030, and 100% of new vehicle sales to be electrified

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vehicles and vehicles suitable for the use of decarbonized fuels such as synthetic
fuels combined by 2040. As for large vehicles over 8 tons, we will aim to introduce
5,000 units of electrified vehicles in advance in the 2020s while promoting
technological verification to develop and promote the use of electrified vehicles
suitable for commercial use such as cargo and passenger businesses, and we will
also set a target for the diffusion of electrified vehicles in 2040 by 2030, taking into
account the progress in technological development and diffusion efforts to reduce
the price of hydrogen and synthetic fuels.”•

The European Commission has proposed that the EU aim for a 40% share in
renewables by 2030. In view of the recent invasion of Ukraine, a 45% renewables
target is now being proposed by the European Parliament and is likely to receive
support.

•Within the EU there are numerous policies aimed at increasing the rollout of EVs
and the necessary infrastructure to make them a viable alternative to regularinternal combustion engine (ICE) vehicles.

•

The proposal from the European Commission aims to phase out the sale of ICE
vehicles by 2035, with intermediate decarbonisation targets for 2025 and 2030.
The European Parliament are aiming to increase these targets but will have tonegotiate their position with the European Council, who will likely water down the
proposals.

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