The recent EU elections have sparked intense debate in Brussels and Berlin regarding the de facto ban on combustion engines set for 2035. This decision presents an opportunity for necessary course corrections in the automotive industry. Car manufacturers and suppliers have already started transitioning to electric vehicles, but uncertainties and customer reluctance remain. The EU’s focus on phasing out combustion engines in favor of solely battery-powered cars may hinder innovation and create strategic dependencies on key raw materials from non-European sources.
The rapid shift to electric vehicles raises concerns about charging infrastructure, climate-neutral electricity sources, and the overall feasibility of the transition by 2035. Instead of introducing a blanket ban on combustion engines, the EU should consider introducing a pricing mechanism for CO2 emissions in the transportation sector. Certificate trading could provide a market-driven approach to reducing emissions and incentivize sustainable mobility practices.
Additionally, offering per capita climate allowances to offset rising costs for lower-income households may help maintain equity in the transition to cleaner transportation systems. By addressing these challenges and aligning policies with market dynamics, the EU can navigate the complexities of transitioning to electric vehicles while promoting innovation and resilience in the automotive industry.
There is a need for a comprehensive strategy that balances environmental goals with economic concerns and social equity, ensuring a sustainable and successful transformation towards cleaner transportation systems.
