The European Union (EU) has a steep target to attain a zero-emission target by 2035, and by achieving this, it is reported that it could get back to manufacturing 16.8 million vehicles per year like post-2008. A study by campaign group Transport & Environment (T&E) revealed that it is vital for the EU to achieve this target, or this could lead to the loss of 1 million jobs in the auto industry. According to the report, if the EU maintains its 2035 zero-emission vehicle target and implements policies to boost domestic EV production, the automotive value chain’s contribution to the European economy could increase by 11% by 2035.
Here’s why zero mission car rule matters
The global automotive market is trapped between a rock and a hard place, and the EU is no different. It has to compete with the highly aggressive Chinese manufacturers, and at the same time, grapple with the U.S. tariff. U.S. President Donald Trump has approved 25% import duties on auto parts that are made outside the United States. Due to this, many companies have decided to set up manufacturing units in the U.S. or are planning to in the near future.
According to Reuters, many leading car companies appealed for extending the zero-emission deadline or making the mandate flexible. In May, the European Parliament supported easing some EU CO2 emissions targets for cars and vans, but has so far upheld the landmark regulations that will ban the sale of new petrol and diesel cars by 2035 as part of the European Union’s push for zero-emission mobility and climate neutrality.
Julia Poliscanova, Senior Director for Vehicles & Emobility Supply Chains at T&E, said, “It’s a make-or-break moment for Europe’s automotive industry as the global competition to lead the production of electric cars, batteries, and chargers is immense. Europe’s success hinges on the road that EU politicians take today. Keeping the 2035 zero-emissions goal alongside adopting strong industrial and demand policies is the EU’s best chance to return to greater car production, maintain job levels and increase the economic value of its auto industry.”
A silver lining on the horizon
This may all sound bleak, but the T&E report reveals that if the EU stays on the path and sticks to its policies to achieve the 2025 zero-emission target, then Europe’s economy will jump up by 11%. There’s better news for all, as the battery manufacturing sector will create more than 100,000 jobs by 2030, while the charging industry will open up another 120,000 new jobs by 2035.
