Open letter

Accelerating the electrification of fleets is key to cut transport emissions and increase affordable electric vehicles for consumers

To European Commission Executive Vice-President for the European Green Deal,
To the European Commissioner for Climate Action,
To the European Commissioner for Transport,

Maroš Šefčovič
Adina-Ioana Vălean
Wopke Hoekstra

Our open letter with BEUC and EV100 members

Dear,

First of all, we would like to congratulate Mr Šefčovič and Mr Hoekstra with their appointment respectively as Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight and Commissioner for Climate Action. We look forward to working together with you and supporting you during the upcoming mandate.

EU action to accelerate fleet electrification represents a golden opportunity to not only tackle transport emissions, EU’s largest source of greenhouse gas emissions, but also widen the access to cheaper second-hand electric vehicles. We therefore very much welcome Vice-President Šefčovič’s pledge during last week’s hearing that “By the end of the year, the Commission will launch a public consultation in preparation for future action to accelerate the electrification of corporate fleets by 2030.”

6 out of 10 cars sold in the EU are company cars, with those vehicles driving twice as much as private cars. The purchasing decisions of corporate fleets have far wider implications than just for that enterprise. Company cars tend to spend 3 to 5 years in a fleet before going into the used car market. With 8 out of 10 Europeans buying their cars in the used car market, this is a crucial channel for EU citizens.

Accelerating the transition towards electric vehicles beyond existing policies is a necessity to achieve transport’s net-zero and the 2040 climate target of -90%. As such, the faster fleets electrify their company cars, the faster more households will be able to access more affordable electric vehicles powered by clean European electricity, the faster we can reduce transport emissions. This is a win-win for climate and consumers.

Corporate fleets are in a great position to lead the way on electrification, with many already committed to fully transitioning their fleets by the end of the decade through Climate Group’s EV100 campaign. On a total cost of ownership basis, electric vehicles have the advantage over polluting vehicles meaning electrification makes strong business sense too. A regulatory framework would simply ensure that all fleets are playing their part.

That’s why the Platform for electromobility – the alliance of uniting automotive industries, NGOs, civil society and cities, the Europe’s leading consumer association and the leading global initiative bringing together fleets committed to electrification – are uniting and calling on you to:

  • Deliver on your promise to launch a public consultation by the end of this year at the very latest.
  • Limit the scope of the public consultation to legislative options to accelerate fleets electrification of at least 95% by 2030.
  • Include light commercial vehicles in the scope of this public consultation.
  • As part of this consultation come forward with a timeline for a swift adoption of this legislation.

We hereby reiterate that we fully support the European Commission in setting binding zero emission purchase targets for corporate fleet (passenger cars) of minimum 65% in 2027 and 95% in 2030 and binding electrification targets for light commercial vehicles.

We would very much appreciate a meeting where we can discuss this initiative. We count on your leadership to bring forward a public consultation.

With kind regards,

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On 11 December 2019, the European Commission unveiled the EU strategy on climate neutral Europe, or the European Green Deal. The strategy promises to ensure that there are no net greenhouse gas (GHG) emissions by 2050, including increasing the EU’s 2030 GHG reduction target to at least 50%, and towards 55% in a responsible way. This clear shift towards sustainable and zero emissions technologies and economy-wide change is urgently needed if the EU is to meet the ambition of the Paris Agreement. Electro-mobility is already ubiquitous in our lives, from road vehicles to rail, as it is key to clean cities, affordable mobility of all Europeans and our industrial competitiveness.

In March 2020 the COVID-19 pandemic swept across Europe and confined Europeans to their homes, halting business activity and closing factories for months. As Europe slowly goes back to life, the deepest economic recession since the 1930s heralds a new normal. But the relevance of the Green Deal or the urgency of climate action have not disappeared – the twin challenges of economic and climate crises must be tackled together. Electrification is the strong basis to relaunch the economy and create futureproof jobs fast.

The Green Deal should be the basis of the economic recovery, starting with today. This policy paper outlines the Green Deal vision and green recovery recommendations of the European
Platform for Electro-mobility, representing almost 40 companies, associations and civil society across the electro-mobility ecosystem.

Notably:

  • Electromobility remains the best solution to achieve the climate and industrial ambition of the European Green Deal for transport. This ecosystem is crucial to Europe’s economic
    relaunch in the aftermath of COVID-19 and will create over 1 million jobs in vehicle and rail manufacturing, charging infrastructure deployment and supply chains such as batteries by
    2030.
  • The EU Recovery Package must support the e-mobility ecosystem, including the continued demand for zero emission vehicles, green investments into e-mobility supply chains and
    stimulus to accelerate the roll-out of charging infrastructure across Europe, notably workplace & residential schemes.
  • The Commission should not delay the enabling policies key to e-mobility’s success, including the urgently needed review of the Alternative Fuels Infrastructure law, the Sustainable Battery
    package and the revision of the Energy Taxation Directive.

Batteries will underpin Europe’s efforts to achieve a climate neutral economy and transport electrification. In the European Green Deal, the European Commission stated that a ‘90% reduction in transport emissions is needed by 2050 (compared to 1990)’ and that road transport needs to move to zero emissions beyond 2025 . In order to reach this objective, Europe will have to significantly increase the uptake of zero emission technologies, with a strong emphasis on battery electric vehicles.

This will require large amounts of batteries on the European market required to power the mass expected number of zero emission vehicles. Within this context, the Commission should therefore take stronger action and prioritise these zero emission technologies in the upcoming EU Industrial Strategy and the Circular Economy Action Plan planned for March 2020 to support the domestic production of sustainable batteries.

In preparation for the upcoming EU Battery Strategy expected for October 2020, the Commission must prioritise a circular economy approach when it comes to addressing the recycling of batteries. This includes ensuring the security of supply of raw materials, the reuse (where adequate) and recycling of batteries, as well as the high  environmental and social values in the manufacturing process as ways to promote a sustainable EU battery industry. Moreover, it will be extremely important to take note of the emerging new jobs related to the dismantling and recycling sector overall, as well as the processing and the reincorporation of used active materials within new batteries (i.e. when repurposing is economically proven to be better than recycling).

This is the only path to build a strong and competitive sustainable battery industry in Europe. Success in the European EV revolution is heavily  dependent on the success of Europe’s up and coming battery industry. Only with clear focus and political will, can Europe fully enhance the benefits of a home-grown industry, bringing economic value, jobs and growth as a part of the energy transition.