Auto manufacturers welcome inclusion of road transport in EU emissions trading

The European Automobile Manufacturers’ Association (ACEA) said it welcomed the European Parliament’s decision to include road transport in the EU Emissions Trading System (EU ETS).

ETS for road transport, or ETS2, is a cornerstone of the policy framework to decarbonise road transport.

“In itself, it is not a magical solution that can replace other regulations. However, without this it is not possible to achieve the required levels of CO2 reduction,” said ACEA Director Eric-Mark Huitema.

“We will only see vehicles with alternative propulsion in large numbers on the road if the carbon content of all energy carriers and CO2 emissions are correctly priced.” A carbon pricing system should be part of a wider enabling framework, including a network of charging and refueling infrastructure.

ACEA said it regretted that MEPs voted to include only commercially used fuels in ETS2. This creates an administrative burden and is impractical to implement. Instead, all fuels used in road transport should be covered by ETS2. This would send a strong signal to the fuel industry to bring carbon neutral alternatives to the market in sufficient quantities and at affordable prices.

It is important to carefully consider the impact of the ETS on private and professional road users, so that they can make quick adjustments. Revenues should be reinvested in the road construction sector to ease the transition, and should be used to mitigate the impact.

ACEA also said it was aware of Parliament’s position on the Carbon Border Adjustment Mechanism (CBAM). Such a mechanism is necessary to match the level of ambition of the ETS reform and to ensure that European industry does not suffer from carbon leakage. At the same time, it is vital that careful consideration is given to the competitiveness of European manufacturers in both domestic and export markets. ACEA therefore welcomed Parliament’s request to the European Commission to assess the impact on downstream users.

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