EU public policy impact on sustainable mobility
Mobility is subject to many layers of regulations and policies acting as “carrots” or “sticks” depending on the topic. The purpose of this paper is to shed some light on the most remote, yet crucial layer: policies and regulations decided at EU level and applicable to member states and industry players (OEMs, charging, energy industry, service providers).
Why is public policy important?
What is decided at local / regional / national level is everywhere in the media and has a significant influence on the mobility landscape. For example, fiscal incentives, subsidies and other measures of governmental support for EVs are important drivers of electrification. There are clear correspondences between the level of that support and the degree of electrification in each country.
European policymaking can often be perceived as remote, technical and very slow. Nevertheless, the impact of policymaking can have huge implications. The recent enforcement of CO2 targets for OEMs is living proof of the significant impact these regulations have on market dynamics. And a lot is happening right now around mobility. Whilst at ALD Automotive our focus has been on vehicle-related policies, we know that this scope has forever broadened to include additional public policies that will apply both to modes of transport and charging infrastructure.
The EU’s fight against climate change
The new EU climate plans released last December 2020 cover a very broad set of ambitions and action plans, with an extensive agenda when it comes to transportation. The overriding objective is to be climate neutral in 2050 and for this, to reduce CO2 emissions by 55% (vs 1990) by 2030 across all sectors of activity, compared to 40% in the previous set of climate objectives. Hence the code name “Fit for 55” in EU lexicology under the European Green Deal.
Transportation is a key area of focus due to its weight in absolute emissions (14% for cars and vans only), its mainstream visibility and for being the only sector whose emissions have kept growing over the past 30 years. In this context, the European Green Deal calls for a 90% reduction in greenhouse gas emissions from transport in 2050 vs 1990.
This urgent need to curb transport emissions translates into:
A massive investment plan: the EU Recovery and Resilience Fund, currently €672.5 billion in loans or grants, spread across 7 areas. One of them is “Recharge and Refuel” and is dedicated to Sustainable Transport and Charging solutions;
The most impressive regulatory agenda ever with regards to mobility, with no less than 82 (!) initiatives that will direct transport policy in Europe. All policies currently under review have the same, single direction: to create the right environment for post-fossil-fuel mobility across all modes of transportation, in other words cleaner vehicles, and an easier and more transparent charging experience. All of these policies in the making will have a direct or indirect impact on corporate fleets.
Public policies that will have an impact on you and your fleets
EU Recovery and Resilience Fund, "Recharge and Refuel"
Revision of the CO2 emission performance standards for cars and vans (2021/2022)*
Euro 7 emission standards for cars, vans, lorries and buses (2021/2022 for post-2025 enforcement)
Revision of the Alternative Fuels Infrastructure Directive – “AFID” (2021/2022)
Revision of the Energy Performance of Buildings Directive – “EPBD” (2021/2022)
* for Directives, timing indicated is for adoption at European level – count one or two additional years for national transposition in EU member states.
Read more about these policies, what is at stake and why it matters, as well as examples of other areas under analysis in our full paper, by clicking here.
Public policy is a key enabler for sustainable mobility
At ALD Automotive, we view public policy as a key enabler to make sustainable mobility happen.
The immense challenge ahead, however, will be to bring consistency and speed to this “matrix” of policies across domains and geographies. It will be crucial to make sustainability happen in real life.
We intend to play an active role in this process which motivated our decision to recently join the ChargeUp Europe trade association as its first ecosystem member. We fundamentally believe that collectively we can and should make sustainable mobility a reality.
If you’d like to find out more about policies and regulations decided at EU level, contact Stéphane Renie, Head of CSR at ALD Automotive at: email@example.com