Month: September 2023

CLEPA | Member states reject stricter vehicle pollutant standards

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  • In the next decade, an estimated 100 million conventionally powered vehicles will be sold in the EU
  • The Commission’s proposal could be effectively implemented with a few prudent safeguards
  • Regressing to Euro 6 will neither support stricter air quality limits nor stimulate innovation in the EU

in CLEPA, 26-09-2023

The Member states’ governments within the Council adopted yesterday the general approach for Euro 7. This forms the foundation for forthcoming negotiations with the European Parliament regarding the next phase of regulations on vehicle pollutant emissions.

Member states are lending their support to test conditions and limit values for cars, vans, and trucks that overall align more closely with the existing Euro 6/VI standards rather than the Commission’s proposed revisions, providing little, if any, contribution to improved air quality. The Council did not retain the new refuelling emissions requirements nor the reduced evaporative limits proposed by the Commission but did preserve the inclusion of limit values for tires and brakes.

Benjamin Krieger, the Secretary General of CLEPA, the association representing the European automotive supply industry, remarks, “Automotive suppliers support the advancement of Euro 7, with realistic testing conditions and limits. The Commission’s proposal could be effectively implemented with a few prudent safeguards. The required technology is available and economically viable. Regressing to Euro 6, as proposed by the Council, is not needed to maintain affordable mobility and will neither support implementing stricter air quality limits nor stimulate innovation in the EU. In the next decade, an estimated 100 million conventionally powered vehicles will be sold in the EU. This decision now determines whether the EU will have a role in shaping technology standards or leaves this prerogative to the United States and China.”

Bernard Lycke, Director General of CECRA representing cars, vans and truck dealers agents and repairers at European level, encourages the co-legislators to continue working on robust Euro 7 standards and their adoption before the upcoming EU elections in June 2024.

“This is crucial to enable a quick implementation of the new Euro 7 legislation. Indeed, millions of vehicles with internal combustion engines will continue to be sold, maintained and repaired in the next years and these should contribute to air quality improvements.”

A decision regarding the European Parliament’s position is anticipated on 12 October. Following the adoption of positions by both institutions, the Parliament and the Council, negotiations in the trilogue phase will commence.

 

 

CLEPA |

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epresenting the automotive supply and road transport sectors, CLEPA and IRU have addressed a letter to Members of the European Parliament calling for their support in preserving essential technology options under the new CO2 standards proposal.

in CLEPA, 14-09-2023

The signatories raise that the performance of the future EU road transport sector will very much depend on the technology options allowed by the CO2 standards regulation, as well as the enabling conditions required to successfully decarbonise the sector. They defend that a technology-open approach that allows for the coexistence of various vehicle propulsion systems is critical for the efficient operation of the single market, including for emergency responses to all types of crises.

The letter proposes 5 key recommendations for the CO2 regulation standards, to ensure technology diversity and guarantee an efficient decarbonisation of the freight transport sector:

  1. Leave adequate space for carbon-neutral fuels in heavy-duty vehicles (HDVs) as a long-term solution for sustainable road transport alongside electrification and hydrogen
  2. Implement essential enabling conditions to achieve ambitious CO2 targets and ensure timely assessment of the legislation’s effectiveness
  3. Exempt high-capacity vehicles from the targets
  4. Include new vehicle groups to the CO2 emission reduction targets for heavy-duty vehicles
  5. Support regional passenger transport by reshuffling bus and coach targets

 

In the letter, CLEPA and IRU also raise that, for a well-functioning and stable EU mobility and logistics sector, the EU should allow transport companies to decide which technology is the most suitable for the various types of operations to achieve the common goal of carbon neutrality.

 

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CLEPA | European automotive suppliers call on EU institutions to prioritise the adoption of the Critical Raw Materials Act and expedite trilogue negotiations

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  • Electric vehicles contain over 200 kilograms of minerals versus around 40 kilograms in a conventional car
  • Current investments in raw material extraction and processing are insufficient to meet growing demand
  • The proposed regulation should accelerate investments within the EU and in strategic partner countries while promoting circularity without imposing excessive requirements

in CLEPA, 12-09-2023

The EU’s automotive supply sector heavily relies on secure access to raw materials to manufacture a wide range of innovative components crucial for advancing climate-neutral mobility, including batteries, electric motors, and lightweight parts. EU automotive suppliers urge the European Commission, Parliament and Council to prioritise the adoption of the EU Critical Raw Materials Act and to ensure trilogue negotiations start as quickly as possible.

While CLEPA acknowledges and appreciates the work done by Members of the European Parliament and Member states to bring forward amendments to the initial proposal, there are areas for improvement.

The European Commission’s proposal for a Critical Raw Materials Act indeed demonstrates the right ambitions by introducing various tools to strengthen the security of supply and resilience of supply chains. However, the initial proposal places excessive emphasis on supply chain surveillance, reporting requirements and monitoring. The regulation should include additional instruments to achieve the objective of ensuring a secure, resilient and diversified supply of raw materials. These should include support for Research & Innovation in the areas of circularity and material substitution, and the conclusion of raw material partnerships with third countries.

CLEPA has identified proposed amendments to enhance the Critical Raw Materials Act in three key aspects:

  • Improve the feasibility of achieving a secure, resilient and diversified supply of raw materials
  • Enhance focus toward strategic investments in supply chains, rather than overemphasizing supply chain surveillance and reporting requirements
  • Promote circularity by increasing material recovery rates and fostering R&I for circularity, while avoiding duplicate circularity requirements

Enhance feasibility of objectives

The Critical Raw Materials Act introduces several valuable tools for industry, including one-stop-shops to streamline regulatory requirements for expanding processing or recycling facilities, as well as setting time limits for permit approval, reducing uncertainty and fast-tracking investments. The Act also facilitates off-take agreements, coordinates and potentially supports financing for strategic raw material projects, addressing financial challenges. Proposed schemes for joint procurement can mitigate cost pressures stemming from volatile raw materials prices. To ensure successful implementation, dedicated administrative resources are essential, with a clearly defined advisory role for industry.

Sharpen focus on strategic investment

The initial proposal places excessive reliance on collective insights into the size and location of strategic stocks across a broad range of (processed) raw materials, which may not align with the needs of individual member states, industries or companies. Instead, the Act should establish a framework that reduces investment risks within the raw materials industry and fosters collaboration across the supply chain. CLEPA welcomes the proposed amendments by the European Parliament to reduce administrative burdens and supports setting clear target for strategic investment partnerships with third countries.

Foster circularity

Circularity must be a fundamental pillar of the strategy to secure the supply of raw material inputs. The proposed End –of-Life Vehicle (ELV) Regulation should be the sole legislation to introduce product-specific circularity requirements for the automotive industry, avoiding redundancy and potential regulatory conflicts. Specifically, the provision for permanent magnets in the ELV Directive (art 12 and Annex VI) deviates from the provisions in the CRMA (art. 27). ELV art. 12 rightly only introduces labeling requirements for permanent magnets that contain Neodymium-Iron-Boron or Samarium-Cobalt (no negative labelling required). Furthermore, the ELV Directive would better protect IP by no longer requiring disclosure of the chemical composition of the magnet. The Critical Raw Materials Act should play a crucial role in supporting the build-up of recycling capacities and fostering a higher recovery rate. The framework should incentivise both the recycling of post-consumer and manufacturing waste. We welcome amendments by the European Parliament to incentivise investment and public funding for R&D in the areas of circularity, design for circularity and material substitution.

 

 

 

 

CLEPA | Members of the European Parliament, Ministers of the 27 EU Member States,   Last year, the European Commission proposed a new Euro 7 pollutant emissions standard for new vehicle types, after years of collecting evidence and data. The European Union needs a timely and well-targeted Euro 7 legislation for cars, vans, trucks and buses to improve the health and wellbeing of its citizens and urban population in particular. Cities cannot be left alone to improve air quality with the limited resources available to them. Euro 7 will make it easier for national and local administrations to deliver on ambient air quality commitments currently being upgraded by EU legislation. While the shift to electromobility is underway, 100 million new vehicles with an internal combustion engine are expected to be sold in the EU in the next decade and will remain on European roads for years to come. Electrification and continued improvement of conventional engines are complementary approaches and should work hand in hand to achieve significant pollution reductions.  Europe needs more ambitious standards and must maintain its global leadership alongside the US and China, which are also adopting more ambitious pollutant regulations. European vehicle manufacturers will need to invest in these other regions in adopting advanced technologies anyway to remain competitive in the global market. New Euro 7 rules need to be adopted within the current legislative period, to ensure that citizens living in cities can continue to benefit as soon as possible from improving air quality facilitated by reduced vehicle pollution. Emission control systems meeting the Commission proposal requirements are already mature and available, as shown by data collected during robust road testing by various technology providers. The timely availability of mature affordable emission control systems meeting the requirements of the Commission proposal has been demonstrated by data collected during robust road testing by various technology providers. To facilitate, implementing and delegated acts should be swiftly adopted after the legislation, with the most important parameters already developed in parallel in the coming months. This early development of the regulatory detail is critical to a successful implementation, providing industry with confidence to invest, and enabling the path to cleaner road transport and improved public health. Further, Euro 7 emission testing procedures need enhancement compared to Euro 6/VI, in combination with the ambitious limit values and lifetime requirements proposed by the Commission, to reflect driving conditions and the actual environmental impact of different vehicle types in the real world. The Commission’s proposed new testing rules will, with certain improvements to ensure representativeness of on-road testing, strike a good balance between what is necessary and what is feasible. They will ensure that emissions from trucks especially will be controlled under true real-world conditions.   As the necessary technologies are already known, the most accurate cost analysis of Euro 7 demonstrates that the price to pay for industry and consumers is moderate. Euro 7 vehicles will remain affordable, while according to the Commission’s own calculations, every euro invested in Euro 7 technology will return five times more benefits in terms of health and environment protection costs. Now that discussions on the legislative proposal are at a decisive point, the industrial sectors represented by the signatories below call on EU institutions to take an ambitious and future-oriented position on Euro  7 including for exhaust and non-exhaust, i.e. evaporative and refuelling systems, brakes and tyres; as well as for reagent quality requirements and the durability of batteries, without undue delay. Signatories AECC – Association for Emissions Control by Catalyst  CECRA – Voice of European vehicle dealers and repairers CEFIC AGU – Automotive Grade Urea Sector Group CITA – International Motor Vehicle Inspection Committee CLEPA – European Association of Automotive Suppliers IPA – International Platinum Group Metals Association MECA – Trade association of companies supplying clean mobility technologies

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Members of the European Parliament,
Ministers of the 27 EU Member States,

Last year, the European Commission proposed a new Euro 7 pollutant emissions standard for new vehicle types, after years of collecting evidence and data.

The European Union needs a timely and well-targeted Euro 7 legislation for cars, vans, trucks and buses to improve the health and wellbeing of its citizens and urban population in particular. Cities cannot be left alone to improve air quality with the limited resources available to them. Euro 7 will make it easier for national and local administrations to deliver on ambient air quality commitments currently being upgraded by EU legislation. While the shift to electromobility is underway, 100 million new vehicles with an internal combustion engine are expected to be sold in the EU in the next decade and will remain on European roads for years to come. Electrification and continued improvement of conventional engines are complementary approaches and should work hand in hand to achieve significant pollution reductions.

Europe needs more ambitious standards and must maintain its global leadership alongside the US and China, which are also adopting more ambitious pollutant regulations. European vehicle manufacturers will need to invest in these other regions in adopting advanced technologies anyway to remain competitive in the global market.

New Euro 7 rules need to be adopted within the current legislative period, to ensure that citizens living in cities can continue to benefit as soon as possible from improving air quality facilitated by reduced vehicle pollution. Emission control systems meeting the Commission proposal requirements are already mature and available, as shown by data collected during robust road testing by various technology providers. The timely availability of mature affordable emission control systems meeting the requirements of the Commission proposal has been demonstrated by data collected during robust road testing by various technology providers. To facilitate, implementing and delegated acts should be swiftly adopted after the legislation, with the most important parameters already developed in parallel in the coming months. This early development of the regulatory detail is critical to a successful implementation, providing industry with confidence to invest, and enabling the path to cleaner road transport and improved public health.

Further, Euro 7 emission testing procedures need enhancement compared to Euro 6/VI, in combination with the ambitious limit values and lifetime requirements proposed by the Commission, to reflect driving conditions and the actual environmental impact of different vehicle types in the real world. The Commission’s proposed new testing rules will, with certain improvements to ensure representativeness of on-road testing, strike a good balance between what is necessary and what is feasible. They will ensure that emissions from trucks especially will be controlled under true real-world conditions.

As the necessary technologies are already known, the most accurate cost analysis of Euro 7 demonstrates that the price to pay for industry and consumers is moderate. Euro 7 vehicles will remain affordable, while according to the Commission’s own calculations, every euro invested in Euro 7 technology will return five times more benefits in terms of health and environment protection costs.

Now that discussions on the legislative proposal are at a decisive point, the industrial sectors represented by the signatories below call on EU institutions to take an ambitious and future-oriented position on Euro  7 including for exhaust and non-exhaust, i.e. evaporative and refuelling systems, brakes and tyres; as well as for reagent quality requirements and the durability of batteries, without undue delay.

Signatories
AECC – Association for Emissions Control by Catalyst
CECRA – Voice of European vehicle dealers and repairers
CEFIC AGU – Automotive Grade Urea Sector Group
CITA – International Motor Vehicle Inspection Committee
CLEPA – European Association of Automotive Suppliers
IPA – International Platinum Group Metals Association
MECA – Trade association of companies supplying clean mobility technologies

 

CLEPA | Joint call to stimulate the European automotive industry’s transformation and enhance competitiveness

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Open letter to the President of the European Commission,
Ursula von der Leyen

Dear President,

The signatories of this open letter support the European Commission’s renewed focus on a competitive automotive industry in Europe and wish to thank you for the constructive dialogue.

All signatories represent the broad spectrum of the automotive value chain and are committed to shaping the green and digital transition. We proactively contributed to DG GROW’s transition pathways exercise. Since DG GROW initiated this exercise, geopolitical challenges have put additional pressure on the decarbonisation of transport.

Failure to act now within the current mandate risks further delays that will inevitably undermine the European automotive industry’s transformation and competitiveness. It will also put at risk employment in an industry that generates more than 13 million jobs in the EU. The European Commission must urgently establish a robust framework to manage these challenges and prioritise six key actions.

I.    Develop a robust industrial strategy
China provides a telling example of a targeted industrial strategy supporting a globally competitive, domestic auto industry in electromobility. The US Inflation Reduction Act also shows that a robust industrial policy framework can trigger hundreds of billions in private investment . The EU must develop a robust industrial strategy that guarantees a level playing field (outside and within the EU), provides a stable investment environment and fosters a competitive automotive industry and industry manufacturing in Europe. This includes a competitive regulatory framework, the availability and simplicity of financial resources to stimulate industrial investment in innovative green and digital technologies and production methods in Europe with guarantees to ensure the retention and creation of quality jobs while ensuring fair distribution of profits and not surpassing the needs of the SMEs. A crucial pillar of a robust industrial strategy will be to secure reliable energy sources at competitive prices, which will reduce costs for citizens and businesses.

II.    Scale up a European zero emission market and battery value chain
Achieving road transport decarbonisation depends on the entire value chain for zero-emission vehicles. In addition to the Critical Raw Materials and Net-Zero Industry Acts, the EU needs a strong response to the US Inflation Reduction Act (IRA) to boost investment in the European battery value chain and other components that are crucial to improving the environmental performance of vehicles.  Europe should reduce dependency on critical parts of the value chain from third countries. The regulatory framework for batteries, drive trains, recyclability, and circular economy must be clear, coherent, and stimulate investment in Europe. Support for the battery and drive train value chain should be complemented with a robust hydrogen strategy, both with regard to industrial and mobility applications.

III.    Ensure a stable and coherent regulatory environment for the sector
The current fragmentation of the EU regulatory framework for the sector creates a context of uncertainty that undermines investment and weakens market demand. The EU should complete the Single Market (including the recharging and refuelling infrastructure as well as electricity) and remove barriers for cross-border trade. The Commission should make proposals to streamline and better articulate regulations, reaffirming the importance of technological neutrality supporting innovation and competition. The Commission should also conduct extensive impact assessments and competitiveness checks before proposing new regulations, including closely monitoring investment and innovation capacity. In particular, restrictions on the use of substances critical for the performance and durability of batteries, semiconductors, and other critical technologies should be assessed carefully.

IV.    Enhance the skills agenda and Just Transition framework
The green and digital transformation must go hand in hand with a Just Transition. The EU must champion a transformation roadmap, especially for regions reliant on the automotive sector. The automotive social partners, European Automotive Regions Alliance and Automotive Skills Alliance should play a leading role in this transformation plan. The Commission should also do more to boost digital skills for a high-tech auto industry.

V.    Improve transport affordability
The EU should ensure affordable and sustainable mobility for all while industry is intensifying its efforts to produce vehicles and services affordable to all. Coordinated incentives should support green investment and repairability across the full aftermarket chain, eg vehicle acquisition in new and second-hand markets. Incentives can enhance affordability, especially as rising costs have eroded European purchasing power.

VI.    Ensure a global level playing field 
Automotive and two- and three-wheeler vehicles provide good examples of changing global trade relationships. State aid policies in third countries put European manufacturing competitiveness at risk. Diversification of the supply of raw materials should be a central pillar of the EU’s trade strategy, including the ratification of existing trade agreements and the negotiation of raw material partnerships.

The signatories of this open letter recognise the critical situation for the European automotive industry. We are committed to decarbonising transport and keeping jobs and automotive manufacturing in Europe. The European Commission should take account of these challenges, and we hope we can jointly secure the European automotive industry’s transformation and European welfare.

Yours sincerely,

Sigrid de Vries, Director General of ACEA
Antonio Perlot, Secretary General of ACEM
Bernard Lycke, Director General of CECRA
Delphine Rudelli, Director General of Ceemet
Benjamin Krieger, Secretary General of CLEPA
Adam McCarty, Secretary General of ETRMA
René Schroeder, Executive Director of EUROBAT
Judith Kirton-Darling and Isabelle Barthes – Joint Acting General Secretaries of IndustriALL