EU ETS: Auto manufacturers welcome inclusion of road transport

Brussels, 22 June 2022 – The European Automobile Manufacturers’ Association (ACEA) welcomes 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 for decarbonising road transport. “By itself it is not a magic solution that can replace other regulations. Without it, however, it won’t be possible to make the required levels of CO2 reductions,” stated ACEA Director General, Eric-Mark Huitema.

“We will only see alternatively-powered vehicles hit the roads in big numbers if the carbon content of all energy carriers and CO2 emissions is priced appropriately.” A carbon pricing system should be part of a broader enabling framework, including a network of charging and refuelling infrastructure.

ACEA regrets that MEPs voted to only include commercially-used fuels in ETS2. This creates administrative burdens and is impractical to implement. Instead, all fuels used in road transport should be subject to ETS2. This would send a strong signal to the fuels industry to bring carbon-neutral alternatives to the market in sufficient quantities and at affordable price levels.

It is important to carefully balance the impact of ETS on private and professional road users, making sure that they can adjust quickly. Revenues should be re-invested in the road sector to facilitate its transition, and should be used to mitigate impacts.

ACEA also takes note of the Parliament position on the carbon border adjustment mechanism (CBAM). Such a mechanism is needed 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 crucial that the competitiveness of European manufacturers on both domestic and export markets is carefully considered. ACEA therefore welcomes the Parliament’s request to the European Commission to assess the impact on downstream users.

By itself ETS is not a magic solution that can replace other regulations. Without it, however, it won’t be possible to make the required levels of CO2 reductions.

Notes for editors

About ACEA

  • The European Automobile Manufacturers’ Association (ACEA) represents the 16 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, Jaguar Land Rover, Mercedes-Benz, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • Visit www.acea.auto for more information about ACEA, and follow us on www.twitter.com/ACEA_auto or www.linkedin.com/company/ACEA/.
  • Contact: Cara McLaughlin, Communications Director, cm@acea.auto, +32 485 88 66 47.

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About the EU automobile industry

  • 12.7 million Europeans work in the auto industry (directly and indirectly), accounting for 6.6% of all EU jobs.
  • 11.5% of EU manufacturing jobs – some 3.5 million – are in the automotive sector.
  • Motor vehicles are responsible for €398.4 billion of tax revenue for governments across key European markets.
  • The automobile industry generates a trade surplus of €76.3 billion for the EU.
  • The turnover generated by the auto industry represents more than 8% of the EU’s GDP.
  • Investing €58.8 billion in R&D annually, the automotive sector is Europe’s largest private contributor to innovation, accounting for 32% of total EU spending.
Content type Press release
Vehicle types All vehicles
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