COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on low-emission mobility A European Union that protects the planet, empowers its consumers and defends its industry and workers
Date: 2017-11-08
Institutions: European Commission, Secretariat-General
Subjects: air quality, clean technology, environmental law, environmental protection, greenhouse gas, motor vehicle pollution, non-polluting vehicle, reduction of gas emissions

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2017  COM(2017) 675 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on low-emission mobility  A European Union that protects the planet, empowers its consumers and defends its industry and workers  
 
 
"I want Europe to be the leader when it comes to the fight against 
climate change 

The Commission wants to make our industry stronger and more competitive 

I call on the car industry to come clean and make it right. Instead of looking for 
loopholes, they should be investing in the clean cars of the future 

The Commission will shortly present proposals to reduce the carbon emissions 
of our transport sector" 

President Jean-Claude Juncker,  
State of the Union Speech, 13 September 2017 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1. 

Introduction 

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. 

The European Union  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".1  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.2 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 employment3 and generates almost 5 per cent 
of EU Gross Domestic Product.4 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.5  This  makes  achieving  a 
mobility system that is sustainable all the more challenging. 

Transport represents almost a quarter of Europe's greenhouse gas emissions and is the main cause of 
reduced  air  quality  in  cities,  which  poses  a  serious  threat  to  public  health.  Road  transport  alone  is 
responsible for almost a fifth of total EU emissions and 73 per cent of emissions from transport.6 

Unless  action  is  taken  to  cut  its  emissions,  transport  risks  becoming  the  largest  source  of 
emissions,  offsetting  the  progress  being  made  in  other  sectors  and  jeopardising  the  EU's 

1  State  of  the  European  Union  (2016)  speech  by  President  Juncker,  14  September  2016;  European  Council 

conclusions, 24 October 2014. 

2  COM(2017) 479. 
3  EUROSTAT Labour Force Survey, 2016 data, for NACE H: "Transportation and Storage". 
4  EUROSTAT National Accounts, 2014 data, for NACE H: "Transportation and Storage". 
5  All data references can be found in the Commission Staff Working Document SWD (2017) 177. 
6  Nearly three times as many people suffer a premature death in the EU due to transport-related pollution than 
die  in  road  accidents,  and  millions  suffer  from  life-long  respiratory  and  cardiovascular  diseases. 
https://www.eea.europa.eu//publications/air-quality-in-europe-2016;http://ec.europa.eu/transport/facts-
fundings/scoreboard/compare/people/road-fatalities_en  

2 

 
                                                            
ability  to  meet  its  overall  emission  reduction  goals.  Decisive  action  on  emissions  from 
transport is therefore essential. 

The  ambition  of  low-emission  mobility  is  embedded  in  the  EU's  core  strategies  in  this  area 
and especially in the Energy Union Strategy of February 2015, which identified the transition 
to energy efficient, decarbonised transport sector as of critical importance.7 This was followed 
up by concrete measures outlined in the Strategy for Low-Emission Mobility adopted in July 
2016:  these  are  now  being  implemented.8  Earlier  this  year,  in  response  to  the  profound 
transformations  underway  in  the  transport  sector,  the  "Europe  on  the  Move"  initiative 
presented  an  agenda  for  a  socially  fair  transition  towards  clean,  competitive  and  connected 
mobility for all, accompanied by a first package of proposals.9 Most recently, the Commission 
has  unveiled  a  renewed  EU  Industrial  Policy  Strategy  that  aims  at  empowering  European 
industries to continue delivering jobs and sustainable growth in this changing and challenging 
environment.10 

Today's package of proposals under the "Europe on the Move" initiative11 focuses on helping 
the European automotive industry and the mobility sector to prepare for the future by setting 
the right conditions and incentives for the industry to be globally competitive, as well as to 
generate innovation, growth and jobs. At the same time, the proposed measures are aimed 
at  ensuring  that  mobility  in  the  future  is  clean,  accessible  and  affordable  for  all,  and  that 
consumer trust can be restored. This is crucial, following the crisis of confidence on diesel car 
emissions  caused  by  the  automotive  industry.  Rules  must  be  robust  and  properly  enforced, 
Europeans  must  have  accessible  and  affordable  transport  alternatives  to  fossil  fuel-powered 
vehicles, and investments in alternative fuels infrastructure must be targeted and coordinated 
accordingly. 

This 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. 

New  CO2  standards  will  help  manufacturers  embrace  innovation  and  supply  low-emission 
vehicles to the market. The Clean Vehicles Directive will promote clean mobility solutions 
in public procurement tenders and thereby provide a solid basis to stimulate demand and the 
further deployment of clean mobility solutions. The package also includes investment support 

7  COM(2015) 80. 
8  COM(2016) 501. 
9  COM(2017) 283. 
10  COM(2017) 479. 
11  This  package  builds  on  many  of  the  European  Commission's  other  strategic  work  streams,  including,  the 
Investment Plan, The Capital Markets Union, the Digital Single Market, The European Pillar of Social Rights 
and Skills Agenda, Climate Action , and the Circular Economy. 

3 

 
                                                            
measures for the trans-European deployment of alternative fuels infrastructure, as well as 
common standards. A methodology for consumers to easily compare fuel prices  is under 
preparation.  The  revision  of  the  Combined  Transport  Directive,  which  promotes  the 
combined  use  of  different  modes  for  freight  transport  (e.g.  lorries  and  trains),  and  of  the 
Directive  on  Passenger  Coach  Services,  which  will  stimulate  the  development  of  bus 
connections  over  long  distances  across  Europe  and  offer  alternative  options  to  the  use  of 
private cars, will also contribute to further reducing transport emissions and road congestion. 
These  initiatives  will  also  contribute  to  the  EU's  integrated  industrial  policy12  so  that  the 
vehicles and other mobility solutions of tomorrow and their components will be invented and 
produced  in  the  EU,  with  the  battery  initiative  of  particular  strategic  importance  in  this 
context.  These  initiatives  seek  to  be  cost-effective,  technologically  neutral  and  socially 
inclusive. 

This second "Europe on the Move" package thus addresses three key political priorities: 

  Europe that protects the planet; 
  Europe that empowers its citizens; 
  Europe that defends its industry and workers. 

2. 

A  Europe  that  protects:  The  EU’s  key  role  in  the  Paris  Framework  and  in 
international standard-setting 

The challenge of sustainable mobility is a global problem, common to a growing number of 
countries  and  cities  in  the  world.  This  is  driving  strong  global  demand  for  clean  products, 
technologies,  and  business  models  that  support  sustainable  mobility,  which  present  a  huge 
business opportunity for a competitive EU industry in this sector.  

the  same 

time  reinforcing 

in  addressing  climate  change  while  at 

It is critical that the EU promotes the next generation of CO2 emissions reduction standards 
for  transport.  This  will  provide  a  clear  signal  to  the  market  and  help  maintain  the  EU's 
leadership 
the 
competitiveness of European industry and ensuring that Europe remains the global standard-
setter  in  the  automotive  manufacturing  industry.  The  proposal  for  new  CO2  standards  for 
cars and vans post-2020 is therefore a key element of this package. These standards will help 
Member States to achieve their 2030 climate targets and allow cities to increase the quality of 
life and the health of their citizens.13 The existing passenger car CO2 Regulation is estimated 
to have accounted for 65 to 85 per cent of the reduction in car emissions achieved following 
its introduction in 2009.14 At the same time, these standards will link the implementation of 
the  Paris  Framework  to  Europe’s  global  trade  agenda  by  giving  our  industries  competitive 
edge, allowing them to export their products and tap into growth markets as global demand 
for clean vehicles grows. The revision of the Clean Vehicles Directive will help to stimulate 
additional public demand for these vehicles in the EU. A well-developed market and industry 
base in the EU is essential for strengthening our export potential.  

Promoting multimodality and efficiently combining different kinds of transport is also crucial 
to reducing emissions. The revision of the legislation on combined transport will stimulate 
the combined use of trucks and trains, barges or ships for the transport of goods, by making it 

12  COM(2017) 479. 
13  COM(2016) 482. 
14  Ricardo-AEA and TEPR (2015), Evaluation of Regulations 443/2009 and 510/2011: 

https://ec.europa.eu/clima/sites/clima/files/transport/vehicles/docs/evaluation_ldv_co2_regs_en.pdf 

4 

 
 
 
                                                            
more competitive compared to road freight transport only. Reducing the number of lorries on 
the  road  will  mean  a  reduction  of  CO2  emissions  and  air  pollution  by  the  freight  transport 
sector, as well as reduced congestion and accidents on our roads.15 

Similarly,  the  Commission's  proposal  to  revise  the  Directive  on  passenger  coach  services 
will  improve  the  mobility  of  citizens  by  stimulating  the  development  of  bus  connections 
thereby  offering  alternative  options  to  the  use  of  private  cars  and  increasing  the  use  of 
sustainable  public  transport  modes.16  Such  services  will  also  bring  economic  and  social 
benefits, being more responsive to consumers' needs and providing real options for people on 
lower incomes. 

These  legislative  proposals  will  be  supported  and  reinforced  by  the  wide  range  of  enabling 
measures that are foreseen in this package. 

3. 

A  Europe  that  empowers:  No  second-class  consumers  and  leaving  no  region 
behind  

The  freedom  for  citizens  to  move  unhindered  across  the  Union’s  territory  is  a  major 
achievement  of  the  European  Union.  It  has  enabled  people  to  travel  smoothly  between 
Member States, be it for business or leisure. The EU has a duty to its citizens to facilitate and 
make  freedom  of  movement  easier  across  borders.  Transport  will  continue  to  grow,  but  it 
must develop sustainably.17 The daily experience of traffic jams and the crisis over diesel car 
emissions have understandably provoked calls for road transport to contribute to better health 
and air quality. These have in some cases led to the adoption of policy measures at local level 
to  discourage  car  use  in  urban  areas,  which  are  already  influencing  consumers'  mobility 
choices.  

In  the  aftermath  of  the  debacle  over  diesel  car  emissions  and  the  severe  crisis  in  consumer 
confidence that ensued, the Commission has already taken action to ensure a better deal for 
consumers  and  restore  trust  in  the  EU's  approach.  We  are  putting  in  place  a  robust  testing 
framework  for  type-approval  based  on  new  testing  procedures  that  will  ensure  effective 
compliance with the rules.18 This framework will also provide a solid platform for applying 
the new CO2 emissions standards post-2020. 

We must also pay attention to facilitating consumers' access to affordable new and cleaner 
forms of mobility and make sure that the benefits of these new mobility services are available 
to  all  and  are  spread  evenly  throughout  the  Union.  New  technologies  and  innovative  and 
collaborative business models make our mobility system more sustainable. However, we must 
avoid that they create a digital divide, causing new inequalities or depriving some regions or 
areas from the benefits derived from these innovations. 

Low-  and  zero-emission  solutions  will  not  become  a  widespread  reality  on  Europe's  roads 
without an adequate alternative fuels infrastructure in place. Industry is now announcing 
considerable  investments,  particularly  in  electric  vehicle  production.  Having  sufficient 
infrastructure in place will be vital if consumers are to be attracted to credible alternatives to 

15  COM(2017) 648. 
16  COM(2017) 647. 
17  COM(2016) 501. 
18  COM(2016) 031. In addition, new test procedures have been introduced at EU level to test emissions from 
cars  in  real  driving  conditions  as  well  as  in  the  laboratory,  and  these  apply  to  new  types  of  vehicles  since 
September 2017. 

5 

 
                                                            
conventionally-fuelled  vehicles.  The  2020-2025  timeframe  will  be  critical  in  Europe,  with 
current projections suggesting that low- and zero-emission vehicles will account for up to 7 
per  cent  of  vehicles  on  European  roads  in  2025.19  Investments  will  need  to  be  mobilised 
rapidly to prevent a lack of appropriate infrastructure becoming the bottleneck of tomorrow. 

A  clear  EU  policy  framework  for  alternative  fuels  infrastructure  is  already  in  place,  where 
Member States have a primary role in its deployment on their territory.20 However, the level 
of ambition of national policy strategies is insufficient to meet future demand. Moreover, 
it  is  important  that  infrastructure  and  services  are  interoperable  across  borders.  Consumers 
need  to  experience  low-emission  mobility  as  trouble-free  mobility.21  Public  authorities  and 
market actors need to ensure infrastructure services are interoperable. 

The  deployment  of  alternative  fuels  infrastructure  must  be  accelerated  and  gaps  must  be 
filled.22 This is where the EU can and must make a difference. Financial support from the EU 
will be crucial to partially cover financing needs in the areas where market failures to invest 
persist,  for  example  for  the  Trans-European  transport  core  network.  This  public  support 
should  be  seen  as  a  way  to  leverage  significant  private  investment,  including  through  new 
financing methods such as blending of grants with loans, as promoted by the Investment Plan 
for Europe.23 The package contains an Action Plan to boost investment in alternative fuel 
infrastructure  and  develop  a  network  of  fast  and  interoperable  recharging  and  fuelling 
stations across the Union.24 

The Commission is increasing financial support to leverage public and private investment for 
the roll-out of Alternative Fuels Infrastructure; up to EUR 800 million is being made available 
for this purpose.25 This will combine with the substantial funds already being devoted to this 
area  under  the  Connecting  Europe  Facility  and  the  European  Structural  and  Investment 
Funds.26  Cohesion  Policy  can  support  the  deployment  of  infrastructure  for  alternative  fuels, 
for  all  modes  and  all  fuels,  such  as  recharging  stations  in  individual  cities,  as  well  as  in 
smaller communities, but also help to fund the procurement of alternatively-fuelled vehicles, 
such as clean city buses.27 

19  SWD(2017) 650. 
20  Directive 2014/94. 
21  "I have a vision of a (…) commuter being able to charge his electric car along the motorway the same way we 

fill up on petrol today", President Juncker's speech to the European Parliament, November 2014. 

22  EUR  1.5  billion  is  needed  for  just  equipping  the  Trans-European-Transport  core  network  corridors  with  a 
backbone infrastructure by 2025 for all alternative fuels.  The investment needs are significantly higher when 
considering the entire transport network. 

23  https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/investment-plan-europe-juncker-

plan_en  

24  COM(2017) 652. 
25  The Commission is today making available EUR 350 million from the Connecting Europe Facility Transport 
budget,  which  could  generate  as  much  as  EUR  1.7  billion  in  overall  investment  from  among  others  the 
European Fund for Strategic Investments, the European Investment Bank, and public and private banks under 
the  CEF  Blending  Call.    Up  to  EUR  450  million  will  be  made  available  from  the  NER300  programme 
undisbursed  revenues  through  the  Connecting  Europe  Facility  Debt  Instrument,  managed  by  the  European 
Investment Bank.   More details at: https://ec.europa.eu/clima/policies/lowcarbon/ner300_en 

26  Around  EUR  70  billion  in  Cohesion  Funds  and  European  Regional  and  Structural  Funds  have  been 
programmed to make the EU transport system more efficient, more environmentally-friendly and less carbon-
intensive. 

27  Outermost regions could serve as testing locations for clean and alternative energy solutions. See COM(2017) 

623. 

6 

 
                                                            
Close cooperation and coordination between the Commission, Member States and at the local 
level is needed to ensure that any gaps are filled and that consumers and their clean cars are 
not left "high and dry". Drivers need to know they can drive across the EU with easy access to 
recharging  where  and  when  they  need  it.  No  EU  region  and  no  consumer  should  be  left 
behind. 

This  package  supports  Member  States,  regions  and  cities  to  increase  their  clean  transport 
offerings to citizens. This is reinforced by increasing the contribution of public procurement 
to  market  uptake  of  clean  vehicles  by  promoting  clean  vehicles  in  public  procurement 
tenders.28  Cities  play  a  critical  role  in  implementing  the  Paris  Agreement,  in  particular 
through  their  clean  mobility  policies.  The  Covenant  of  Mayors  ceremony  in  February  2018 
will bring together more than 700 European mayors to further stimulate such action at local 
level. 

In  addition,  the  package  will  be  complemented  by  ongoing  work  to  improve  consumers' 
ability  to  make  more  refined  choices  when  purchasing  or  using  a  vehicle  by  offering  a 
methodology to compare the costs of the different available types of fuel, showing them 
the  benefits  of  switching  to  cleaner  mobility  solutions.  To  this  effect,  the  Commission  is 
developing together with Member States a European methodology on fuel price comparison 
and  has  already  made  available  a  Green  Driving  tool  allowing  consumers  to  compare  the 
impact of different technologies on fuel consumption and CO2 emissions.29 

The "Clean Transport Facility" has been launched by the Commission and the European Investment 
Bank to finance projects in clean transport, with a focus on public transport, using Connecting Europe 
Facility  and/or  European  Fund  for  Strategic  Investment  financing.  Under  the  European  Regional 
Development Fund, where as much as EUR 35 billion are available for supporting an energy-efficient 
and decarbonised transport sector, EUR 12.4 billion are earmarked for clean urban transport. Through 
the  European  Territorial  Cooperation  ("Interreg"),  in  particular,  deployment  of  alternative  fuels 
infrastructure in a coherent manner can be ensured at regional and local levels. Several Member States 
have already used the opportunity to programme the deployment of alternative fuels infrastructure or 
purchase  clean  rolling  stock  for  public  transport  (e.g.  electric  buses).  For  example,  in  the  Czech 
Republic  the  Transport  programme  is  supporting  (with  some  EUR  30  million)  the  deployment  of 
recharging  points  for  electric  vehicles.  Purchasing  electric  buses  with  support  from  the  European 
Structural and Investment Funds is envisaged by several Member States, including Poland, Slovakia, 
the Czech Republic, Slovenia and Spain. 

4. 

A Europe that defends: Promoting the EU’s industrial competitiveness to foster 
jobs, growth and investments 

Addressing the energy and climate challenge is a significant opportunity for EU industry to 
increase  competitiveness  and  strengthen  global  leadership  through  innovation.  Our  main 
trading partners are already moving in this direction, with China setting ambitious targets for 
the production and import of clean vehicles (i.e. electric and fuel cell vehicles) in 2019 and 
2020, which translates into about 5 per cent of all new sales in 2019. The car was invented in 
Europe and Europe must take the lead in re-inventing it. 

28  COM(2017 653. 
29  https://green-driving.jrc.ec.europa.eu/ 

7 

 
                                                            
 
More than ever, EU industry in general and the automotive and mobility sectors in particular 
are  coping  with  major  transformations  in  their  businesses,  product  offerings  and  processes. 
Emissions  reduction,  innovation  in  electrified  power  trains,  autonomous  driving  and 
connected  vehicles  are  among  their  greatest  evolutions,  while  digitalisation  and  automation 
are  also  profoundly  transforming  traditional  manufacturing  processes.  Value  chains  in  the 
automotive  sector  including  components  are  changing  fast  with  new  players  entering  the 
market. At the same time, the European automotive industry now has a major task to regain 
the trust of consumers. 

The  automotive  sector  is  crucial  for  Europe's  prosperity,  providing  jobs  for  12  million  people  in 
manufacturing,  sales,  maintenance  and  transport  and  accounting  for  4  per  cent  of  the  EU's  Gross 
Domestic  Product.  The  EU  automotive  sector  is  among  the  world's  biggest  producers  of  motor 
vehicles.  It  represents  Europe's  largest  private  contributor  to  research  and  development,  with  more 
than EUR 50 billion invested annually.30 

Our  ambition  is  to  make  the  EU  industry  stronger  and  more  competitive  in  the  long  term. 
Innovation,  digitisation  and  decarbonisation  are  the  key  to  sustaining  Europe’s 
leadership  in  the  automotive  industry  of  the  future.  This  is  a  central  pillar  in  the  EU's 
broader industrial policy.31 

These  ongoing  industrial  transformations  are  also  putting  significant  pressure  on  the 
workforce  to  adapt;  they  must  therefore  be  accompanied  by  measures  to  ensure  a  smooth 
transition  and  increase  resilience  so  that  people  and  communities  are  able  to  take 
advantage  of  the  new  opportunities.  These  measures  must  address  new  job  requirements, 
support  lifelong  learning  and  support  workers  in  the  transition  between  jobs  by  actively 
helping those in the affected sectors who may need to move out of the sector to retrain and 
find new jobs. The Commission, in partnership with Member States and stakeholders such as 
employers,  workers'  representatives  and  education  and  training  providers,  is  supporting  the 
resilience and competitiveness of labour markets, addressing skill  gaps and mismatches and 
supporting the development of new skills through learning abroad. Key initiatives include the 
EU  Skills  Agenda32  and  the  Blueprint  for  Sectoral  Cooperation  on  Skills33,  the  European 
Social Fund and the Erasmus+ Programme.34 The Commission also set out ways to maximise 
Europe's  innovation  potential  through  "smart  specialisation"  at  regional  level,  including 
building  social  resilience  within  communities  by  generating  economic  activity  and  creating 
employment at the same time, and providing support to regions in transition.35 Tools for the 
industry  and  education  and  training  providers  will  also  be  developed  to  support  skills 
intelligence and forecasting.36  

EU laws must set the right incentives to keep the industry on the path of decarbonisation, and 
technological and global industrial leadership. This means that investments in decarbonisation 
must  be  made  alongside  investments  in  digitisation  and  automation  so  that  Europe  can  also 
take  the  lead  in  this  important  technological  race.  In  spite  of  the  expected  rapid  growth  in 

30  See GEAR2030 report: http://ec.europa.eu/growth/content/high-level-group-gear-2030-report-on-automotive-

competitiveness-and-sustainability_en 

31  COM(2017) 479.  
32  COM(2016) 381. 
33  The 
blueprint 

34  http://ec.europa.eu/programmes/erasmus-plus/node_en 
35  COM(2017) 376. 
36  http://skillspanorama.cedefop.europa.eu/en 

piloted 
http://ec.europa.eu/social/main.jsp?catId=1223&intPageId=4320&langId=en 

sectors, 

including 

being 

six 

in 

is 

the 

automotive 

sector: 

8 

 
                                                            
clean,  notably  electric,  vehicles,  it  is  forecast  that  in  2030  in  the  absence  of  new  policies, 
around  90  per  cent  of  cars  on  European  roads  will  still  be  powered  only  by  a  combustion 
engine.37  A  balanced  and  sustainable  transformation  process  requires  continued  investments 
to  increase  the  fuel  efficiency  of  vehicles  and  to  successfully  market  more  low-  and  zero-
leaves  space  for  continued  efficiency 
emission  vehicles.  This  balanced  approach 
improvements in the combustion engine, and will allow the necessary time for the deployment 
of infrastructure and for more well-performing clean vehicles to reach the market and become 
affordable and accessible to all Europeans.38 

The  Commission's  proposal  for  the  post-2020  CO2  emission  standards  for  cars  and  vans 
therefore includes ambitious but at the same time realistic emission reduction targets for 2025 
and 2030. It also establishes a crediting system based on a benchmark for the share of low- 
and zero-emission vehicles, rather than prescribing any specific technology with fixed quotas. 
It  provides  a  clear  and  strong  signal  to  investors  in  alternative  powertrains  and  fuels 
infrastructure, with the intention of giving a firm incentive to front-runners to further invest in 
low-carbon technologies. A mid-term review of the legislation will allow the Commission to 
assess the effectiveness of the legislation and, where appropriate, propose changes.  

The Commission considers it important to maintain a technologically neutral definition of 
low- and zero-emission vehicles, with the aim of incentivising the market penetration of low-
and zero-emission vehicles as the ones with the highest CO2 reduction potential, but also as 
the  ones  that  will  deliver  a  very  important  clean  air  co-benefit.  This  approach  will  allow 
regulatory stability for the industry, giving them sufficient time to plan, while speeding up the 
increase  of  low-  and  zero-emission  vehicles  on  the  EU  market  for  the  benefit  of  European 
consumers and citizens' quality of life through cleaner air in our cities. 

Connected and automated vehicles have a significant potential to reduce congestion, carbon 
emissions, air pollution, and the number of fatalities on our roads. These vehicles are already 
entering the EU  market and represent  further  challenges  and opportunities  for the industry's 
competitiveness.  In  order  to  reap  the  full  benefit  of  large-scale  cross-border  testing  and 
research  and  financing  programmes  both  at  the  EU  and  Member  State  levels,  we  need  to 
ensure  that  cross-border  and  EU-wide  deployment  and  take-up  of  this  technology  is 
undertaken  coherently  and  is  well-coordinated.  In  addition  to  supporting  research  and 
innovation  in  this  field,  the  Commission  is  continuing  its  work  on  all  related  policy  and 
regulatory  issues,  including  taking  into  account  the  recommendations  of  the  GEAR  2030 
high-level group.39 

Wide-scale electro-mobility across Europe means the number of batteries needed within the 
EU  will  increase  significantly.  Indeed,  batteries  are  at  the  heart  of  this  new  industrial 
revolution  and  are  a  key  enabler  of  the  clean  mobility  transition.  Their  development  and 
production play a strategic role in the ongoing transition to clean mobility and clean energy 
systems.   

37  SWD(2017) 650. 
38  "By 2024 the average 4-year cost of running an electric vehicle should match that of a petrol car." See study 
by BEUC: http://www.beuc.eu/publications/beuc-x-2016-122_low_carbon_cars_in_the_2020s-brochure.pdf 

39  See also GEAR2030 report. 

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Global market forecasts project demand for Lithium-ion batteries to grow to 210-535 GWh by 2025, 
as  compared  to  78GWH  today.  Market  demand  forecasts  in  Europe  range  from  37  to  117  GWh  in 
2025, while being below 10 GWh today.40 

The  proposal  regarding  CO2  standards  for  cars  and  vans,  including  the  crediting  system  for 
low- and zero-emission vehicles, will create the required  clarity and predictability regarding 
the pace of deployment in the EU until 2030 while facilitating consumer's access to affordable 
cleaner  forms  of  mobility.  Announcements  of  car  manufacturers  as  regards  the  timing  and 
ambition of new electrified models coming to market in the next years confirm the expected 
surge in  battery  demand.  From  an  industrial  perspective,  the  growth  in  demand  will  require 
major  investments  in  the  battery  value  chain  between  now  and  2025,  including  a  massive 
upscale of battery cell manufacturing. We are therefore presented with a clear opportunity for 
Europe to attract investments along the value chain to the EU.  

Europe  therefore  needs  to  urgently  take  decisive  steps  towards  establishing  a  complete 
value-chain  for  the  development  and  manufacturing  of  advanced  batteries  in  the  EU. 
This should apply to all stages of the battery life cycle, including re-use or recycling, as well 
as  increased  efficiency  in  the  use  of  resources  and  raw  materials.  It  will  also  be  crucial  to 
move  quickly  from  research  to  testing  and  demonstration  of  advanced  EU  battery  cell 
technology manufacturing. European companies have the expertise and the capacity to make 
Europe  the  lead  continent  for  electro-mobility  and  next-generation  batteries.  This  can  be 
achieved  by  creating  a  pan-European  and  cross-sectoral  battery  ecosystem  capable  of 
translating technological leadership into high-performing and customer-differentiated battery 
systems competitively produced in Europe. 

Due  to  the  level  and  urgency  of  investment  needed,  this  cannot  be  done  in  a  fragmented 
manner. It needs a Europe-wide approach. Considering the fast-changing global competitive 
landscape, this approach should not focus on a single project or a single technology, but aim 
to  promote  and  coordinate  industry-led  projects  across  the  battery  supply  chain  in  joint 
initiatives  to  bundle  expertise  and  financial  resources  in  this  specific  area.  Any  European 
battery  strategy  must  be  about  much  more  than  vehicle  batteries,  given  the  broad 
ramifications  for  the  entire  European  mobility  and  energy  systems,  and  even  beyond  those, 
given the clear implications for the EU's industrial policy and circular economy strategies, as 
well as for its economic partnerships with third countries, and in particular with Africa where 
raw materials are concerned.41  

To  kick-start  concrete  projects,  the  Commission  will  allocate  EUR  200  million  directly  to 
batteries research and innovation under Horizon 2020 (Work Programme 2018-2020) on top 
of  the  EUR  150  million  already  allocated.  In  addition,  the  European  Fund  for  Strategic 
Investments,  as  well  as  tailor-made  financial  instruments  such  as  InnovFin  Energy 
Demonstration  Projects  can  provide  attractive  financing  conditions  for  industrial  projects 
through the European Investment Bank.42 

40  JRC  Science  for  Policy  Support,  EU  competitiveness  in  Advanced  Li-ion  Batteries  for  E-mobility  and 

Stationary Storage Applications – Opportunities and Actions, September 2017. 

41  COM(2014) 297. 
42  http://www.eib.org/products/blending/innovfin/products/energy-demo-projects.htm  

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The  Commission  is  working  closely  with  leading  EU  industry  stakeholders,  as  well as  with 
Member  States43  and  will  return  to  these  issues  in  the  context  of  the  "Industry  Days"  in 
February 2018. The EU industry and innovation community will drive this process, working 
in  close  partnership  with  the  Commission,  the  European  Investment  Bank  and  interested 
Member  States  to  establish  a  competitive  and  profitable  development  and  manufacturing 
chain,  capture  sizeable  markets  and  boost  jobs,  growth  and  investment  across  Europe.  In 
addition, the Commission has various instruments at its disposal to facilitate joint investment 
and  cooperation  among  private  and  public  actors  along  the  value  chain  as  well  as  a  well-
defined State Aid framework to support such actions.44 

include 

The  EU  has  a  large  portfolio  of  instruments,  which  can  be  channelled  into  batteries  development. 
the  European  Fund  for  Strategic  Investments,  the  European  Regional 
These 
Development Fund (with EUR 44 billion potentially available for, inter alia, research and innovation 
in batteries under the smart specialisation strategies developed in EU regions, and EUR 35 billion for 
energy-efficient  and  decarbonised  transport),  and  the  European  Commission  will  allocate  EUR  200 
million directly to batteries research  and innovation under  Horizon 2020 (2018-2020) in addition to 
the EUR 150 million already allocated. 

5. 

Conclusions 

The second package of proposals under the "Europe on the Move" initiative seeks to ensure 
that the best low- and zero-emission, connected and automated mobility solutions, equipment 
and vehicles are developed, offered and manufactured in Europe and that we have the most 
modern  support  infrastructure  in  place.  At  the  same  time  it  contributes  to  cleaning  up  the 
environment for citizens and improving their quality of life, notably through better air quality 
in cities and by reducing congestion. Measures proposed under this package also contribute to 
restore consumers trust.  

This  package  thus  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. 

This package also builds on many of the Commission's other strategic work streams, which, 
among  others,  aim  to  increase  the  installation  of  recharging  facilities  in  homes,  public 
buildings and car parks45, help European businesses and consumers to make the transition to a 
stronger and more circular economy where resources are used in a more sustainable way46, as 
well  as  support  resilience  and  competitiveness  of  labour  markets.  It  is  addressed  to  all 
Europeans  as  citizens,  workers  and  consumers.  It  will  boost  Europe's  competitiveness  and 
lead to tangible improvements, both for the EU's single market, in Member States at national 
and regional levels, as well as in urban areas.  

The  Commission  calls  on  all  stakeholders  to  work  closely  together  to  ensure  the  swift 
adoption  and implementation of these  different  proposals  and  measures,  so that  the benefits 

43  High-Level  Meeting  on  Battery  Development  and  Production 
http://europa.eu/rapid/press-release_STATEMENT-17-3861_en.htm 

in  Europe,  11  October  2017, 

44  Official Journal C 188 of 20.6.2014, p. 4. 
45  COM(2016) 860. 
46  https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/towards-circular-economy_en  

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for  the  EU's  industry,  businesses,  workers  and  citizens  can  be  maximised  and  generated  as 
soon as possible. 

The Commission will present the third and final "Europe on the Move" package in the first 
half of 2018. This will include proposals for carbon dioxide emissions standards for lorries, 
follow-up  to  the  recommendations  of  the  GEAR2030  high-level  group47  adopted  on  18 
October  2017,  actions  in  the  area  of  cooperative,  connected  and  automated  vehicles  and 
mobility  solutions,  as  well  as  proposals  to  facilitate  e-documentation  for  transport  and  to 
improve road safety in the EU.  

47  GEAR2030 report, October 2017. 

12