CO2 targets – Automotive suppliers urge co-legislators to take into account the risk for employment

Member States in the Council have adopted their position (‘general approach’) on the regulation for CO2 targets for cars and vans. Environment ministers decided to raise the target for cars for 2030 by 5 percentage points to 35%, raise the threshold of the mechanism to incentivise zero and low emission vehicles by 5 percentage points to 35% whilst better weighting low emission vehicles in the mechanism.

 

in CLEPA, 10-10-2018


 

“Both the European Parliament and the governments in the Council have now opted to increase the level of ambition. Automotive suppliers see the targets that have been proposed by the European Commission as challenging yet balanced. Going strongly beyond the Commission proposal carries risks to the industrial footprint of the automotive suppliers industry in Europe, putting high-value jobs in the balance”, says Sigrid de Vries, Secretary General of the association of the automotive suppliers industry (CLEPA). “Automotive suppliers advocate an ambitious transformation rather than negative disruption.”

 

“It will be crucial to not set the targets too high and provide the right boundary conditions through a positive incentive mechanism for low and zero emission vehicles. Specifically, a ‘malus’ as requested by the Parliament will have a negative effect. Better weighting of low emission vehicles, such as plug-in hybrids, is positive”, says de Vries.

 

“Only a technology neutral regulation will ensure that emissions will be reduced efficiently. However, there is strong pressure towards favouring battery-electric vehicles at the expense of other solutions, such as hybridisation and alternative fuels, which have a major potential to contribute to decarbonisation. Furthermore, it will be important to confirm that the step forward to well-to-wheel or life-cycle analysis will be done in future legislation.”

 

“Automotive suppliers fully support the goal of decarbonising mobility and produce a wealth of technologies to achieve this. It is a declared aim to remain globally competitive with a large variety of smart, safe and green mobility-related technologies, supporting the jobs of five million people in Europe today. Competitive regulation supporting both the environment as well as employment is a key to Europe’s success.”

 

Tripartite negotiations between Council, European Parliament and Commission are scheduled to begin today.

Automotive suppliers urge co-legislators to stay with CO2 targets proposed by European Commission

“The European Commission proposal of a 30% reduction is a challenging yet realistic target, based on a thorough evaluation of the various elements at stake, environmental priorities prevailing”, comments Roberto Vavassori, President of CLEPA, the association of the automotive suppliers’ industry. “We call on the co-legislators not to go beyond the original proposal. Any target above 30% is exposing our industry to a concrete risk of disruption.”

 

Member States are expected to take a decision on their position on October 9 at the Environment Council. Once both institutions have adopted their respective positions, tripartite negotiations will resume with the aim of agreeing and adopting the legislation.

 

“Automotive suppliers fully support the goal of decarbonising mobility and produce a wealth of technologies to achieve this. Technology neutrality is an important compass which regulators should not abandon, as it enables the deployment of the broadest spectrum of solutions. Today´s vote, however, favours Battery Electric Vehicles (BEVs) at the expense of other solutions, such as hybridisation and alternative fuels, which have a major potential to contribute to decarbonisation as well,” adds Vavassori.

 

“It is our declared aim to remain globally competitive with a large variety of smart, safe and green mobility-related technologies, supporting the jobs of five million people in Europe today. Competitive regulation supporting both the environment as well as employment is a key to Europe’s success”, says Vavassori.

 

“It is crucial too that the boundary conditions for the regulation will be improved in the weeks to come”, says Sigrid de Vries, CLEPA Secretary General. “Today, MEPs not only voted for a stricter regime for ‘eco-innovations’, technology solutions which reduce emissions without being recognised by the test cycle. They also supported a ‘malus’, a penalty for vehicle manufacturers which fail to achieve a benchmark of mostly battery electric vehicles as a proportion of their overall sales. This amounts to a de facto prescription of technology. It is disappointing that proposals for a better recognition in the benchmark of hybrid technology have been rejected.”

 

The Parliament also calls on the Commission to develop a methodology for the life-cycle analysis of embedded emissions in fuel and energy production as well as in the manufacture of vehicles and parts. “This is important to level the playing field for combustion engines, electric vehicles and the many variants in between. Making the step towards well-to-wheel or life-cycle analysis is a welcome approach for future legislation”, says De Vries.

 

Members of the European Parliament approved the report 389 in favour, 239 against and 41 abstentions and adopted the mandate for the rapporteur to begin tripartite negotiations with the Council and the Commission.

 

 

Environment committee underestimates progress in decarbonisation of transport

The environment committee of the European Parliament calls for stricter CO2 targets for passenger cars and vans than proposed by the European Commission and a threshold in addition to incentives for sales of low and zero emission vehicles. These are key outcomes of a vote in the committee last night.

in CLEPA, 11-09-2018


“Automotive suppliers fully support the objective of reducing emissions and are proud to deliver the technology to achieve it. However, the sector calls for realistically ambitious targets to best support the transformation that is unmistakably underway”, says Sigrid de Vries, Secretary General of CLEPA, the association of the automotive supplier’s industry.

Yesterday’s vote stands in contrast to earlier votes in the committees for transport and industry, where majorities of members confirmed targets as proposed by the European Commission. “The position of the environment committee therefore does not reflect the entire spectrum of opinions in the European Parliament. We hope that the members of the Parliament will come to a more balanced position in the plenary session in October”, says De Vries.

“A key requirement is to reduce emissions in the most efficient, technology-open as well as least disruptive way when it comes to jobs and structural change”, she adds. “Electrification is a major part of the solution. Industry assesses that the 30% reduction target proposed by the Commission will trigger a share of electric and electrified vehicles including mild hybrids, plug-in hybrids, fuel cell and battery-electric solutions of at least 60%, and very possibly much higher than that as technologies will increasingly be combined to meet emission targets as well as serve a broad variety of transport needs in a tailored way. Today, this percentage remains in the low single digit range. Major investments are therefore being made and will continue at a fast pace.”

The environment committee voted in favour of compromise amendments proposed by the rapporteur, which call for a reduction of emissions by 20% and 45% respectively by 2025 and 2030 as opposed to 15% and 30% proposed by the Commission. The committee also calls for a “malus”, a penalty for manufacturers which fail to achieve a benchmark of electric vehicles as a proportion of their overall sales. “This is counter the principle of technology neutrality”, says De Vries.

Furthermore, the committee calls on the Commission to develop a methodology for the life-cycle analysis of embedded emissions in fuel and energy production as well as the construction of the vehicle and parts. “Making the step further towards well-to-wheel or life-cycle analysis is important to level the playing field between combustion engines and electric vehicles. Automotive suppliers have long been arguing in favour of a well-to-wheel approach”, says De Vries.

The next step is the vote in the Plenary, likely at the beginning of October. Members of the European Parliament will now have the opportunity to propose amendments to complement the position of the environment committee. Member States’ governments are expected to finalise their position in October as well. Once both institutions have adopted their respective positions, tripartite negotiations will resume with the aim of amending and adopting the legislation.

 

 

US president announces revised trade deal between US and Mexico

On  27th August, U.S. President Donald Trump announced a common accord between the US and Mexico on key trade terms – a replacement  of the existing 25-year-old North American Free Trade Agreement, which Mr. Trump has   pointed towards  for a decline in US manufacturing jobs.

in CLEPA, 29-08-2018


Negotiators have been rewriting the NAFTA treaty over the past year, but in the past five weeks, Canada has not been part of the discussions.

 

The deal struck between the US and Mexico must be read in the global trading context and especially in light of the US import duties on steel (25%) and aluminum (10%), which the US has imposed on Canada, China, Turkey, (albeit EU is enjoying temporary tariff relief).

 

The specific requirements lay down stringent conditions for the import of products, (vehicles and automotive component parts, alike) from Mexico including:

  • Automotive manufacturing: to receive complete tariff free treatment or almost (possibly at around 2.5%), the new deal would require that 75% of the parts in any car sold in U.S. and Mexico would be produced in those countries. Currently, about 62.5% of parts are required to be produced in the US, Mexico and Canada. However, it is not known, at this stage, what the tariffs may amount to if the required local content of 75% is not reached.
  • Higher labour standards: the new deal would require that 40% to 45% of auto parts in cars sold in the U.S. and Mexico are made by workers earning at least 16 USD per hour (aimed at discouraging firms from locating in lower-wage Mexico).
  • Provisions to govern Intellectual Property, digital trade and investor disputes.
  • The pact will expire in 16 years’ time, it is to be reviewed every six years.

 

The 75% local content requirement is already considered as being challenging to fulfil, in particular because large parts of the automotive supply industry use metal resources in their production, sourced from elsewhere. The costs of metal products will increase and, ultimately, it will be the end-consumer who will pay the price.

 

CLEPA is looking more deeply into the full impact of the EU-Mexico deal, (as it currently stands), taking into account the increased costs, the revision of the EU-Mexico FTA and the provisions of the EU-Canada FTA.

 

MEMA, the North American Motor & Equipment Manufacturers Association, has been advocating for a positive renegotiation of the North American Free Trade Agreement. They highlight the importance on the progress made by the Trump Administration and the Mexican government, but they encourage a renewed focus on a three-party agreement that includes Canada.

They also warn that the potential cap of Mexican motor vehicle parts exports into the U.S. may serve to decrease American manufacturing jobs and exports and put U.S. businesses at a global disadvantage — all while increasing costs to consumers.

 

Casting doubt on Canada’s inclusion, Mr Trump said: “We will see whether or not we decide to put up Canada or just do a separate deal with Canada”. He also stated that he wanted to get rid of the name NAFTA, as it has “bad connotations”.

Canadian Prime Minister Justin Trudeau’s office published a note saying that both leaders  “had a constructive conversation” and “look forward to having their teams engage this week with a view to a successful conclusion of negotiations.”

The next steps foresee a deal to be taken before the newly elected Mexican President, Mr. Lopez Obrador, who takes office in December 2018. In order to meet that deadline, the Trump Administration must present the U.S. Congress with a deal at least 90 days in advance, i.e. Friday, 31 August.

Mr. Obrador has said that a two-way agreement with the US was just the first step in, expressing interest “in remaining a three-country deal”. In which case, all three legislatures would have the final say over the trade pacts.

 

Background:

  • The North American Free Trade Agreement covers more than $1tr (£780bn) in annual trade.
  • NB the U.S. has threatened to place tariffs on vehicles and automotive parts on cars imported from Europe, Canada and Asia. The outcome of the US Section 232 investigation is still pending.
  • The United States’s imposition of tariffs on metals, as mentioned above, has prompted global countermeasures, with retaliatory measures on US goods coming from Mexico, Canada, EU, China, India and Turkey.
  • The US has also imposed tariffs on $50 billion worth of Chinese imports, as punishment for alleged Chinese technology transfer. China is levying retaliatory tariffs on 50billion USD worth of US imports..

 

 

Source: CLEPA, MEMA

 

 

Positive and constructive dialogue in transatlantic trade

European Commission President Jean-Claude Junker and U.S. President Donald Trump agreed yesterday to work towards strengthening the bilateral trade relationship, including the elimination of tariffs as well as reducing non-tariff barriers to trade and subsidies.

in CLEPA, 26-07-2018


Roberto Vavassori, President of CLEPA, the European automotive supplier’s association comments positively on the results of the meeting:

“It is very positive to see the U.S. and EU talking constructively again. The comments by Presidents Trump and Juncker are promising, specifically that both sides agree to hold off further tariffs and to reassess existing tariffs on steel and aluminium in the context of negotiations. The words from President Trump about resolving the steel and aluminium tariff and the retaliation of tariff are of special importance for our industry.

The announced dialogue on standards would be crucially important for the automotive industry where high standards of vehicle safety, environmental performance must be maintained, supported by convergence between our two different regulatory systems. CLEPA positively encourages both sides to revisit the chapters already included in transatlantic trade negotiations, including existing tariffs on cars and car parts.

It is important to note that even a reform of the WTO seems to back on the agenda. Challenges such as intellectual property theft, industrial subsidies and the conduct of state-owned enterprises are best dealt with in the framework of multilateral rules.

The EU and the U.S. combined are the most important markets in the world and of crucial importance to the automotive industry. We have always supported talks to facilitate trade between the two partners and will continue doing so. We hope that the meeting between President Trump and President Juncker marks the start of a renewed and lasting dialogue and constructive negotiations.”

CLEPA on the vote on opinions on CO2 standards: Tough balancing act

The committee for Transport and Tourism in the European Parliament has voted yesterday to confirm the Commission’s proposed reduction targets for cars and vans, to call for more flexible rules on eco-innovations and to request the Commission to introduce Life-Cycle Analysis and Well-to-wheel data in emissions regulation. The committee for Industry, Research and Energy did not adopt a position after a vote which overall had produced contradictory results.

in CLEPA, 11-07-2018


CLEPA Secretary General Sigrid de Vries comments:

“Today’s vote reflects the tough balancing act policy makers are tasked with: Defining ambitious but realistic CO2-reduction targets while balancing environmental, consumer and economic interests at the same time. The European Commission has put a highly demanding proposal on the table, which will contribute to the Paris climate goals and to a transformation of the industry. Elaborating on this proposal is a complex task and today’s votes show that policy makers intend to take a detailed and critical look at the Commission’s proposal and the suggestions of stakeholders.

The proposed ambition level will drive the rapid transformation of the automotive landscape, both on the roads with a significant amount of electric and hybrid vehicles, as well as in the automotive industry where alternative propulsion technologies will become a major part of daily manufacturing. Together with digitalisation, decarbonisation constitutes the main transformational force in the sector.

The automotive suppliers support realistically ambitious reduction targets and stress the importance of a technology neutral approach to reduce emissions in the most efficient as well as least disruptive way. In that respect, CLEPA welcomes the support for eco-innovations reflected in the position of the committee for Transport and Tourism as well as for the inclusion of synthetic fuels in the scope of the legislation and a stronger recognition for hybrid technology in the so called ‘benchmark’.

Automotive suppliers are fully part of the transformation process manufacturing everything from electric drivetrain, to advanced combustion engine solutions to hydrogen and other alternative fuels-based technologies. Long-standing innovation and solution providers, they industrialise those technologies that help make transport safe, smart and sustainable. “

The opinion of the committee for Transport and Tourism will be taken into consideration by the leading committee for Environment, Public Health and Food Safety in the preparation of its vote in September and subsequently the vote in the Plenary of the European Parliament (EP), which is scheduled for October. Once EP and Council have decided on their respective positions, interinstitutional negotiations to adopt the regulation will start.

CLEPA statement on the applicability of End of Live Vehicle (ELV) Directive

CLEPA has just published the statement on the applicability of “End of Live” (ELV) Directive vs the “Restriction of the use of certain hazardous substances in electrical and electronic equipment” Directive (RoHS)/ “Waste electrical and electronic equipment” Directive (WEEE) in the automotive industry

by CLEPA, 04-07-2017


EU WEEE directive 2012/19/EU (“Waste electrical and electronic equipment directive”) opens its scope by 15th of August 2018. WEEE applies to electrical / electronical equipment (EEE) and excludes specific EEE for the means of transport, that concerns vehicles, which are in scope of ELV.

 

As a consequence the directive covers further EEE, which were not in scope before. Exemplary examples of EEE new in scope include, but are not limited to clothes and furniture with installed electrical / electronical function such as:

  • Bathroom cabinets with installed illumination
  • Desks, which are adjustable by height through electrical function
  • Shoes with installed blinking lights.

 

The EU “End of Life” (ELV) Directive 2000/53/EC applies to vehicles, including components and materials of vehicles, as defined in article 3(1).

 

The CLEPA statement shall help CLEPA companies to define, which directives apply to their parts, either ELV directive or RoHS / WEEE directive. The statement is supported by JAPIA, the “Japan Autoparts Industry Organization”.

 

You can check the statement below

CLEPA STATEMENT

Industry4Europe coalition publish a new Joint Paper calling for an ambitious industrial policy in Europe

The Industry4Europe coalition, of which CLEPA is a member, has today published a new Joint Paper to inform the EU debate on an new, ambitious industrial policy for Europe.

The Joint Paper makes recommendations with regard to the governance structure for such policy, which should facilitate dialogue as well as concrete implementation of actions.

by CLEPA, 03-07-2018


The Joint Paper was presented this morning to the Austrian Chairman of the Council High-Level Group on Competitiveness and Growth and will be shared with all Permanent Representations as well as with the European Commission.

 

With its first Joint Paper “For an ambitious EU Industrial Strategy: Going further” (October 2017), the Industry4Europe coalition called for a long-term vision for Europe’s industry which demands a long-term governance structure going beyond the 6-month EU Presidency cycle and the 5-year mandate of the current European Commission. Such a governance structure should enable the Commission, the Council and the European Parliament, together with industry stakeholders, to develop a common vision for a smart, innovative and sustainable industry.

Existing policies, initiatives and tools, addressing the challenges and gaps, including those described in the Commission’s Communication “Investing in a smart, innovative and sustainable Industry: A renewed EU Industrial Policy Strategy” of September 2017, should be reviewed in order to develop and implement a long-term comprehensive EU Industrial Strategy as well as for monitoring its progress on a regular basis.

 

Download the Joint Paper 2018-07-Industry4Europe – Joint Paper on Governance

Automotive Industry Guideline (AIG) on REACH has been published

Version 4 of the Automotive Industry Guideline on REACH (AIG) has been published by the Automotive Task Force on REACH (TF-REACH)

by CLEPA, 02-07-2018


Task Force-REACH (Registration, evaluation, authorisation and restriction of chemicals) comprises representatives of all the major vehicle manufacturers and the automotive supply chain, including CLEPA.

The Task Force recommends a common schedule and external communication strategy in order to harmonise the sector’s response to REACH and avoid duplication and confusion by taking into consideration the automotive industry’s specific criteria and tools.

The TF’s approach and recommendations are outlined in the new Automotive Industry Guideline (AIG) on REACH.

 

The European REACH Regulation 1907/2006 came into force on 1 June 2007 and affects all industries. The Regulation requires immediate and ongoing action from automobile manufacturers and suppliers. Under REACH, substances manufactured or imported on their own or in mixtures, as well as substances intended to be released from articles, need to be registered according to the REACH timeline once a certain yearly tonnage is exceeded.  Additionally, Substances of Very High Concern (SVHCs) may require authorisation or may be restricted. SVHCs listed on the Candidate List need to be identified in articles and communicated throughout the supply chain and to the consumer if certain criteria are met. Companies that do not comply with REACH have no market, so continued REACH compliance is critical to maintain business continuity for any company doing business, or having customers or suppliers doing business, in the European Economic Area (EEA).

 

Version 4 of the Automotive Industry Guideline builds on the comprehensive automotive industry recommendations regarding numerous aspects of the REACH Regulation in the previous version 3.1, but includes significant changes to the following chapters:

 

  • Glossary of terms; Notification of Candidate List substances in articles; Communication requirements for Candidate List substances in articles; Authorisation procedure.

New annexes were also added:

 

  • REACH Substance Scrutiny – From PACT Onwards; REACH Annex XVII Impact Evaluation List; Practical Application of the O5A Principle for CL Substances in Articles; Sustainable Substitution Criteria; History of amendments to REACH Regulation; List of changes to AIG.

 

The AIG will be translated into Chinese, French, Japanese and Korean, so as to assist the global automotive supply chain in understanding their REACH obligations while also providing useful recommendations.

For more information and to download version 4 of the AIG free of charge, check 2018-07-AI guideline on REACH 4.0

CO2 targets for trucks are seriously challenging – Smart strategy for emission reduction is necessary

The European Commission has proposed today for the first time binding EU emission standards for trucks. The proposal contains a reduction of COemissions from trucks by 15% in 2025 against a 2019 baseline and at least 30% in 2030. The parameter recognises payload and mileage and is expressed as the number of grams CO2 per tonne kilometre (g/tkm). A fine of 50€ per g/tkm will be imposed on manufacturers which miss the target. A bonus will be awarded for vehicles emitting 350g CO2/km or less.

in CLEPA, 17-05-2018


Sigrid de Vries, Secretary General of CLEPA comments: “The Commission has made a seriously challenging proposal today to help ensure that the transport sector fulfils its contributions towards the Paris agreement. Automotive suppliers actively support realistically ambitious targets and are key contributors to vehicle innovation in pursuit of safe, sustainable and smart mobility. However, the sector urges policy makers to maintain technology neutrality in the regulation and opt for a smart strategy in reducing CO2 emissions which reconciles European competitiveness and environmental protection.”

 

Highly ambitious CO? and fuel consumption reduction will only be possible with strong electrification of the fleet as well as additional policy measures, for example by strengthening the uptake of alternative fuels such as CNG (Compressed Natural Gas) and LNG (Liquified Natural Gas), paving the way for climate-neutral synthetic fuels, incentivising eco-innovations, improving infrastructure and rolling out intelligent traffic and transportation systems. Regulation should reward emission reductions, regardless of how these are achieved.

 

The automotive supply industry argues in favour of making the next steps towards a Well-to-Wheel approach and, in a further stage, Life-Cycle Assessment to take into account the carbon performance of fuels, energy source and vehicle manufacturing, address CO2 emissions beyond the tailpipe and reap the full benefits of technology neutrality. Furthermore, targets need to reflect the different transport tasks and the particularities of vehicle classes and powertrains. The industry also underlines the need to use robust data. CLEPA supports the VECTO tool, but the proposed reduction baseline of 2019 raises concerns as very little time will be left between the availability of the data and the application of the mid-term target. The inclusion of supercredits is seen as positive as it incentivises alternative powertrain technologies and adds flexibility towards meeting the targets.

 

Europe is a world leader in manufacturing efficient trucks with best-in-class technology. The regulatory framework should facilitate progress towards even higher efficiency, without prescribing specific technology.