(12) The updated New Industrial Strategy (26) foresees the co-creation of green and digital transition pathways in partnership with industry, public authorities, social partners and other stakeholders. In this context, a transition pathway should be developed for the mobility ecosystem to accompany the transition of the automotive value chain. The pathway should take particular heed of SMEs in the automotive supply chain, of the consultation of social partners including by Member States, and also build on the European Skills Agenda with initiatives like the Pact for Skills to mobilise the private sector and other stakeholders to up-skill and re-skill Europe’s workforce in view of the green and digital transitions. The appropriate actions and incentives at European and national level to boost the affordability of zero emission vehicles should also be addressed in the pathway. The progress made on this comprehensive transition pathway for the mobility ecosystem should be monitored every two years as part of a progress report to be submitted by the Commission, looking inter alia at the progress in the deployment of zero-emission vehicles, their price developments, deployment of alternative fuels development and infrastructure roll-out as required under the Alternative Fuels Infrastructure Regulation, the potential of innovative technologies to reach climate neutral mobility, international competitiveness, investments in the automotive value chain, up-skilling and re-skilling of workers and reconversion of activities. The progress report will also build on the two-year progress reports that Member States submit under the Alternative Fuels Infrastructure Regulation. The Commission should consult social partners in the preparation of the progress report, including the results in the social dialogue. Innovations in the automotive supply chain are continuing. Innovative technologies such as the production of electro-fuels with air capture, if further developed, could offer prospects for affordable climate neutral mobility. The Commission should therefore keep track of progress in the state of innovation in the sector as part of its progress report.

(12) The updated New Industrial Strategy (26) foresees the co-creation of green and digital transition pathways in partnership with industry, public authorities, social partners and other stakeholders. In this context, a transition pathway should be developed for the mobility ecosystem to accompany the transition of the automotive value chain, in full transparency and in consultation with all stakeholders, including by considering the establishment of a specific forum for social dialogue in the automotive sector. The pathway should take particular heed of SMEs , including micro-enterprises, in the automotive supply chain, of the consultation of social partners including by Member States, and also build on the Council recommendation on ensuring a fair transition towards climate neutrality and on the European Skills Agenda with initiatives like the Pact for Skills to mobilise the private sector and other stakeholders to up-skill and re-skill Europe’s workforce in view of the green and digital transitions. The appropriate actions and incentives at European and national level to boost the affordability and sustainability of zero emission vehicles should also be addressed in the pathway. The role that public procurement can play in the pathway should also be addressed, and in that regard the Commission should consider a revision of Directive (EU) 2019/1161 of the European Parliament and of the Council (26a) to ensure its alignment with the objectives of Regulation (EU) 2019/631. The progress made on this comprehensive transition pathway for the mobility ecosystem should be monitored every year as part of a progress report to be submitted by the Commission, looking inter alia at the progress in the deployment of zero-emission vehicles, their price developments and their energy consumption, impacts on consumers, deployment of alternative fuels development and infrastructure roll-out as required under the Alternative Fuels Infrastructure Regulation, development of the share of renewable energy as required under the Directive (EU) 2018/2001 of the European Parliament and of the Council (26b) , the potential of innovative technologies to reach climate neutral mobility, international competitiveness, investments in the automotive value chain, up-skilling and re-skilling of workers and reconversion of activities especially in regions with a high percentage of jobs related to the automotive value chain, and emissions linked to the age of light-duty vehicles while considering actions aimed at a synchronous, socially-just and environmentally sound phase-out of older vehicles . The progress report will also build on the progress reports that Member States submit under the Alternative Fuels Infrastructure Regulation. The Commission should consult social partners in the preparation of the progress report, including the results in the social dialogue. The Commission should also consult with a wide range of independent experts, stakeholders and national and regional administrations in order to ensure a comprehensive knowledge base. Innovations in the automotive supply chain are continuing. Innovative technologies such as the production of electro-fuels with air capture and hydrogen cars with onboard hydrogen storage system technology , if further developed, could offer prospects for affordable climate neutral mobility. The Commission should therefore keep track of progress in the state of innovation in the sector as part of its progress report.