EU Must Sustain EV Support for E-Mobility Growth

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In a significant call to action, E-Mobility Europe has urged EU leaders to maintain the momentum created by the agreed 2025 CO2 limits. These limits not only set a clear path for emissions reduction but also serve as a crucial market driver for the electric vehicle (EV) industry. To support European companies in meeting these standards, E-Mobility Europe insists on the necessity of “much stronger smart action” to stimulate EV demand across the continent.

Recent research conducted in collaboration with New Automotive highlights the positive impact of the EU’s CO2 limits for 2025. According to this study, adherence to these targets will lead to an additional 450,000 EVs gracing our roads by the end of this year. This surge would elevate total EV sales to an impressive 2.4 million for the entire year, a stark contrast from scenarios where the targets were relaxed. This achievement is seen as a pivotal step in keeping Europe aligned with its ambitious 2035 and 2040 CO2 limits for cars, vans, and trucks.

Maintaining these limits is not just about numbers; it translates into tangible benefits for European vehicle owners. The analysis indicates that achieving these goals could yield fuel savings of an additional €270 million, bringing the total fuel cost savings from all new EVs in 2025 to a remarkable €1.4 billion. Furthermore, these efforts would contribute to a reduction of 530,000 million tonnes of CO2 emissions across the EU, which is equivalent to 1.3 times the total emissions of Poland.

However, the road ahead is not without its challenges. The year 2024 saw stagnation in the EV market, exacerbated by Germany’s removal of subsidies, which raised concerns among automakers. In response, European manufacturers are ramping up EV production in anticipation of the 2025 CO2 limits, with seven new models priced under €25,000 set to enter the market. This strategic move presents a unique opportunity for industries and governments to collaborate and foster consumer uptake of electric vehicles.

By maintaining the EU limits, market certainty is reinforced, which is vital for the EU charging industry to reach its ambitious target of 13 million charging points by the end of this year. Additionally, it reassures investors in European battery technology that there is a consistent demand for their products, a critical factor in the transition to electric mobility.

Despite these positive developments, concerns regarding the current conditions in the European market have prompted several member state governments to call for the cancellation of potential future fines. The European Commission recently announced its commitment to investigate “possible flexibilities” in order to maintain the competitiveness of the industry.

Chris Heron, Secretary General of E-Mobility Europe, emphasised the importance of keeping the 2025 CO2 limits intact. He stated, “It’s critical that Europe’s 2025 CO2 limits remain in place to help pull electric vehicle sales upwards. They are necessary to keep a level playing field and to drive ecosystem investment in the face of intense global competition. If the European Commission does investigate flexibilities, it must tread very carefully to keep healthy pressure on the 2025 market.”

Heron further urged governments to take a proactive role in supporting car manufacturers in achieving compliance through more intelligent and stable incentive policies. “Let’s unite on making 2025 a success and not backtrack before we get started,” he implored.

Ben Nelmes, CEO of New Automotive, echoed this sentiment, stating that the research released today recommends that both the EU and national governments should first focus on enhancing market demand in support of automaker efforts. He advised that any remedial actions should only be considered after assessing whether the 2025 limits have been successfully reached.

Nelmes also welcomed the European Commission’s evaluation of the potential for EU-level incentives to stimulate electric car sales across the region. However, he stressed the importance of all member states accepting their responsibility in this endeavour. “Improving electric vehicle attractiveness for consumers through stable policies that don’t break the bank is vital,” he asserted.

“The electrification of the vehicle parc in Europe will not only enhance air quality but also provide greater freedom from the volatility of fossil fuel markets and reduce driving costs for everyone. Two years ago, governments across the EU agreed to the 2035 goals. That was the easy part; now we must implement the necessary policies to make these goals a reality, both to mitigate the impact of climate change and to ensure Europe does not lag behind countries like China in this essential transition to an electrified economy.”

As we navigate the complex landscape of electric mobility, the call for collaboration between governments, industries, and consumers has never been more critical. The EU’s 2025 CO2 limits represent a beacon of hope for a greener future, but achieving these goals demands concerted effort and unwavering commitment from all stakeholders involved.

In conclusion, the future of electric vehicles in Europe hinges on the steadfast implementation of the 2025 CO2 limits, alongside supportive policies that foster market growth and consumer acceptance. The time to act is now, and together, we can ensure that Europe remains at the forefront of the global transition to a sustainable transport system.