On the 25th of March 2026, PubAffairs Bruxelles organised an afternoon of discussion on the evolution of automotive mobility in the EU. This event was also a timely opportunity to discuss the benefits and challenges for both consumers and the industry of the transition towards a cleaner and affordable transport system, with our distinguished speakers: Zala Tomasic MEP (EPP/SI); Michael Bloss MEP (Greens/DE); Edoardo Turano, Head of Unit, Road Mobility, DG CLIMA, European Commission; Massimiliano Vascotto, Head of Public Affairs, ACEA and Karsten Schulze, Technical Services President at ADAC, who gave a preliminary input to the event and participated in the panel discussion.
Arthur Corbin, Business Adviser in the Cabinet of EVP Stéphane Séjourné, delivered a keynote speech.
The discussion was moderated by Ian Johnston, EU Correspondent for the Financial Times.
The event was hosted by ADAC.
Ian Johnston opened the debate by welcoming the audience and introducing the main topic, namely the evolution and future of automotive mobility in the EU. He then introduced Arthur Corbin and invited him to deliver his keynote speech.
Arthur Corbin began his speech by pointing out the work undertaken by the European Commission over the last few years in relation to automotive mobility in the EU, starting from the Automotive Action Plan presented in March 2024. He then emphasised the importance of taking a step back to assess what has already been achieved, as well as the challenges ahead, to be able to better envisage Europe in 2030 and ensure that benefits for both the industry and consumers can be delivered.
He then referred to the Automotive Strategy, which had been presented by the European Commission on the 5th of March 2025 following demands for flexibility by the industry and eventually adopted by EU co-legislators, as well as to the Automotive Package, which was released before the end of the year. He proudly noted that, for the first time, the European Commission was delivering an overarching industrial strategy for the EU. He then elaborated on the five pillars of this strategy.
First, concerning the decarbonisation pillar, Mr Corbin explained that the European Commission proposed the CO2 standards revision for cars and vans, which came with flexibilities in 2030 whilst maintaining climate integrity by including a compensation mechanism designed to support the creation of a lead market for green steel and “Made in Europe” which, he added, is badly needed for EU industries. He noted that this process demonstrates how flexibility can go hand in hand with climate coherence going forward.
He further elaborated on the remaining content of the package, stressing the importance of boosting demand as the second pillar. He explained that the most effective approach to achieve this is by, first, addressing where investments in car park renewables are more likely and, secondly, by looking for the largest segment which can be targeted, namely corporate cars. On this basis, he noted, the European Commission put forward a proposal for legislation on corporate cars to, among other things, stimulate demand and have an impact on second-hand vehicles.
The speaker went on to illustrate the third pillar of the package, drawing attention to the simplification agenda. He stressed the importance of simplifying the reporting and the technical legislation whilst ensuring affordability for consumers within the automotive sector. Building on this fourth pillar, Mr Corbin mentioned the Small Affordable Cars initiative, with which the European Commission, in his view, provided for the first time a clear signal to the European industry to reshore the production of small affordable cars within Europe. He reiterated how timely this aspect was, particularly from the consumer’s perspective. He also highlighted the successful results obtained so far, noting the strong performance of cars manufactured in Europe (which came to the fifth pillar), such as the R5 and the ID.3.
Further, Mr Corbin emphasised the importance of harmonising all the five pillars, ensuring that decarbonisation targets and demand-boosting measures work together to deliver a good industrial deal for European production. He warned that it is essential to avoid going into 2030 with a massive increase in foreign activities, or fast tracks for Chinese producers who will not produce in Europe. For these reasons, Mr Corbin explained, the European Commission introduced the Industrial Accelerator Act (IAA), whose aim is to ensure that EU OEMs (Original Equipment Manufacturers) and non-EU OEMs producing cars in Europe do not overly depend on China’s supply.
He then moved to the second aspect of the IAA and questioned how the EU could ensure that, by 2030, it would use all the political means to strengthen the European industry. This was about making sure that, for future electrified technologies, PHV, and the battery electric vehicles (BEVs), a significant percentage of European added value would be incorporated into cars receiving public subsidies. He noted that this is essential to structuring Europe’s battery value chain, which is why the European Commission introduced the Battery Booster Facility to increase the financing.
Arthur Corbin went on to point out that all these pillars are highly relevant whilst also working on the CRMs (Critical Raw Materials). In this sense, the European Commission had presented the RESourceEU Action Plan and had been signing agreements to diversify EU’s activities and de-risk the economy. He explained that the EU had signed deals with South Africa and Australia, and would do the same with Mercosur, to reduce its external dependencies. He added that the European Commission intends to take this work further by strengthening the recycling dimension of the economy through the Circular Economy Act, thereby ensuring a comprehensive value chain approach.
He then reiterated the importance of the work carried out by the European Commission and all the progress achieved compared to the previous year. While acknowledging that the road ahead remains challenging, he stressed that a clear and structured strategy is now in place to address the industrial transition. He argued that the framework set out through the five pillars of the Automotive Package will drive the EU industrial growth and help prevent a scenario in which Europe, going from 13 million cars being produced every year, an average of 80% of European added value in those cars and European OEMs (original equipment manufacturers) having 75%-80% of market share, to 10 million cars, 50-60% of EU added value in cars because OEMs were allowed to source abroad, and 50%-60% of OEMs’ market share because of unfair competition, could face an industrial crisis.
Mr Corbin approached the conclusion of his keynote speech by focusing on innovation and Europe’s future prospects. He emphasised that the EU still has opportunities ahead, mentioning the example of future battery technologies, where he believes Europe remains well-positioned to compete. He also added that, as Europe produces alternative electric motors in the absence of magnets, this is an opportunity in terms of innovation that should not be wasted.
He then made a final remark regarding consumers, stating that the European Commission put all the necessary elements in place to provide consumers with cheap, affordable, made-in-Europe cars by 2030. Providing the possibility of buying this type of cars would convince more consumers that buying an EV (electric vehicle) would be financially more advantageous beyond merely climate-related considerations. The Iran crisis has rendered this process clearer as, by driving an EV, you can currently save up to €100 per month due to the high cost of fossil fuels.
Finally, he recalled a statement from Henry Ford who, when creating his car, said that, if he had listened to his consumers or clients at that time, he would have sold them horses which would go faster. Mr Corbin found this statement to be wise and worth following more as a way forward.
The moderator thanked Arthur Corbin for his keynote speech and for setting up the panel discussion. He then introduced Karsten Schulze, Technical Services President at ADAC, and invited him to give a preliminary input before the start of the debate.
Karsten Schulze began his speech by welcoming the audience and thanking Mr Corbin for his insightful remarks on the European Commission’s work.
He then proceeded to introduce ADAC. It He explained that ADAC is Europe’s largest automobile club, with the mission to support and safeguard mobility. He highlighted the organisations’ decades-long commitment to consumer protection and outlined how this objective is pursued, notably through independent roadside assistance, highly specialised air rescue services, consumer testing and comprehensive legal and technical advice. He then mentioned that ADAC provides a wide range of services related to mobility and tourism, and emphasised the common goal of all of these activities, notably ensuring that mobility remains safe, affordable, forward-looking, and suitable for every use.
Building on ADAC’s commitment to citizens and referring to Mr Corbin’s previous remarks, Mr Schulze stated that climate protection is a non-negotiable priority for the Association. ADAC supports the legal requirements for climate neutrality in the transport sector. However, Mr Schulze stressed the need for the pathway to achieve these goals to be pragmatic. He mentioned that transformation cannot succeed through bans or rigid rules, but it requires incentives, innovation, and a clear understanding of consumers’ mobility in their daily lives.
Karsten Schulze elaborated on the political challenge that stands out against the achievement of this scenario. He wondered how Europe could ensure that the mobility transition is both environmentally effective and largely supported by society. Leaving room for debate on this matter for the panel discussion, Mr Schulze drew attention to the examination of the European Commission’s Automotive Package. He welcomed the package’s introduction of greater flexibility in achieving the CO2 fleet targets from 2030 and its aim to green corporate fleets. However, he pointed out the subordinate attention that is given to consumers’ interests. He warned that, by undermining such interests, the EU risks discrediting public trust at a time when it is already under pressure. The speaker reiterated the citizens’ shared concern about their economic future, and stressed the need for a mobility transformation that actively involves consumers and is not shaped against them. He proceeded by stating that the fundamental requirement for achieving this type of transformation is that regulation must be technology-neutral. Mr Schulze further explained that alternative fuels such as e-fuels and sustainable bio-fuels need to be recognised at an earlier stage and with greater consistency. He deemed the current EU legislative proposals not sufficient, while alternative fuels’ future availability depends on other legislation, suggesting improvements to the Renewable Energy Directive.
At the same time, Karsten Schulze pointed out that, even if Europe managed to catalyse the transition to electric mobility, internal combustion engine vehicles would continue to circulate beyond 2035. He further stated that consumers need climate-friendly alternatives to these vehicles. Otherwise, he stated, costs will increase without delivering real climate benefits. The speaker reiterated the need for a holistic assessment of CO2 emissions, while solely focusing on tile tailpipe emissions fails to capture the full potential of all available technologies. Hence, ADAC advocates for a comprehensive approach enabling a fair assessment of both climate impact and technological opportunities, adding that fleet regulation should continue to develop in this direction. He gave the examples of plug-in hybrid vehicles and range extenders to explain how technologies that bridge the gap between current consumers’ needs and future ambitions can drive the mobility transition to electric mobility, enabling both electric driving in the daily life and flexible range.
Mr Schulze flagged once again the importance of a realistic measurement of the CO2 emissions of those vehicles, emphasising that regulation should provide incentives rather than penalties. He also stressed the importance of regulation’s practicality, noting that citizens require affordable solutions for their individual mobility, and that electric mobility will only achieve widespread acceptance if it is practical, affordable, and reliable. He added that, although several consumers found the switch as an attractive option, others faced a lack of charging facilities in their housing, estate or neighbourhood. Such practical challenges demonstrate that a one-size-fits-all approach is not the solution.
The speaker concluded by highlighting ADAC’s proactive vision for the evolution of mobility in the EU, believing in several opportunities for consumers and for the climate emerging from this transformation. At the same time, ADAC acknowledged the challenges that this transition may entail, and he reiterated the Association’s commitment to shaping this transformation fairly and sustainably for both the industry and consumers.
Ian Johnston thanked Karsten Schulze for his remarks, and moved on to engage with the audience before starting the panel discussion. He invited those present to raise their hands if they owned a car, and to keep them raised if they owned an electric vehicle. On such basis, he highlighted the relatively low number of electric car owners in the audience, noting the continuing challenge of achieving a transition to alternative forms of mobility that actively involve consumers.
The moderator then kicked off the debate by asking the panellists how they envisioned the automotive industry in 2030 and what the EU needs to achieve this transition. He first turned to Michael Bloss MEP, inviting him to introduce himself and respond to the question.
Michael Bloss MEP replied that, as a first thing, he wants the automotive industry in Europe to exist in 2030. He underlined the growing pressure on the EU automotive industry, for which the primary issue, rather than what will happen in 2035, is the low level of car sales among European car manufacturers. He further explained that this was caused by a heavy reliance of these manufacturers on the Chinese market, where they are losing approximately 20% of their market share every year.
Mr Bloss MEP continued his intervention by shifting the focus of the question away from the 2035 transition objectives to the need to sell more EU cars globally. He elaborated on this point by explaining that this prospect will only be possible if the EU automotive industry develops to a level at least comparable to that of Chinese electric cars.
Building on his previous assessments, he then concluded by stating that the biggest challenge for Europe is not to slow down, but to speed up, but however, the current legislation is not giving providing incentives for this to happen.
The moderator turned to Massimiliano Vascotto and invited him to take the floor.
Massimiliano Vascotto introduced himself and opened his intervention by agreeing with several of the points raised previously. However, he argued that the solution to the current situation significantly differed from the approaches discussed earlier. He emphasised the issue of affordability and pointed out the extremely high upfront cost which some consumers require to purchase face when purchasing/ need to pay for electric vehicles, the main reason for this regarding being? batteries, from which account for 40% of the value of an electric vehicle came. He further explained that the batteries for these cars are largely sourced from China, and argued that, regardless of what the European Commission seeks to achieve with the Industrial Accelerator Act, these batteries will continue to be imported from China as a more affordable option.
Picking up on MEP Bloss’s earlier remarks, Mr Vascotto expressed the frustration surrounding competition with Chinese entrance in the market, particularly in relation to battery costs and affordability costs. The speaker reiterated that all the measures introduced by the European Union to tackle affordability are unlikely, especially in the short term, to provide the solutions required to incentivise consumers to choose electric vehicles over internal combustion engine cars.
Mr Vascotto stressed that all these obstacles hinder the possibility for electric cars to be the most attractive option for consumers. He also mentioned that ACEA, as an industry, is exploring potential solutions and alternatives to address some of these challenges in terms of, for instance, economies of scale and battery technology. However, he added that several barriers extend beyond an economic value, relating instead to widespread consumers’ concerns, which are harder for the industry to overcome. He highlighted the limited role that the industry can play in this regard, stressing the need to rely on an ecosystem to help them bridge the gap between industry and consumers. As a final remark, Mr Vascotto emphasised that the future of the automotive industry is electric.
Ian Johnston thanked Massimiliano Vascotto and invited Edoardo Turano to share his views on the matter.
Edoardo Turano introduced himself and stated that the automotive sector needs to play a fair share in the decarbonisation effort, in line with the climate targets set in the EU Climate Law. The transport sector, including road transport, was the only one in the European economy showing an increasing emissions trend. Hence, this trend needs to be reverted reversed and the automotive sector also needs to contribute significantly to emissions reduction.
He then pointed out that the EU automotive sector must remain competitive and strengthen its position, reiterating the European Commission’s clear vision of an electric future for mobility in Europe. On this note, he explained that, in 2025, around 25% of the cars sold globally was were electric. In parallel, the International Energy Agency projected that, in 2035, this percentage would grow to 50%, meaning that the only opportunity for the industry to continue to be successful came from electric vehicles segments.
Echoing Michael Bloss MEP, the speaker addressed the declining volume of European car sales as of 2017, as well as the rising costs faced by both the industry and consumers. Mr Turano then emphasised the need to have a clear signal to invest in the transition to electric mobility, including zero-emission technologies as well as the broader value chain, to ensure that all the enabling conditions will materialise and that consumers are reassured about the possibility for electric cars to serve their mobility needs.
Edoardo Turano then moved on to the third point of his reply, expressing the European Commission’s wish to see an automotive sector which contributes to shifting away from fossil fuels. He outlined how Europe continued to spend €290 billion per year in imports of oil products, which represents a loss for the EU economy, as well as for consumers, who are exposed to volatile prices significantly impacting their incomes. Mr Turano then highlighted that the shift away from fossil fuels also includes shifting towards zero-emission vehicles, which will integrate mobility and energy systems more with vehicle-to-grid technologies to avoid curtailing renewable electricity and stabilise the grid, thereby ensuring that the whole energy system will be more capable of absorbing higher shares of renewable energy.
He concluded that the European Commission will continue to work along these lines to see the objectives it envisioned along these three courses of action being met. He also added that all these elements together are going to support the industry, the consumers, and the economy in general.
The moderator thanked Edoardo Turano and turned to Zala Tomasic MEP, inviting her to share her insights on the matter.
Zala Tomasic MEP introduced herself and began her intervention by challenging some of the statements previously made by the other panellists, stating that the future is not necessarily electric, but is surely carbon-neutral. She expressed her hopes for a future in Europe where a mix of ICE and EVs will coexist, but also stressed the need to firmly address emission reductions. The speaker highlighted how problematic it is to be dependent on carbon fuels but warned about replacing one dependency with another. MEP Tomasic also stated that Europe cannot afford to be too dependent on China, especially for batteries and critical raw materials. She felt surprised when she found out about the European Commission’s caps on renewable fuels and biofuels in its legislative proposal: recalling Arthur Corbin’s statement about the need for the EU to achieve its climate targets, she argued that there is a discrepancy between such climate goals and the proposal to limit renewable fuels, especially as the latter are addressing the new fleets whilst decarbonising the current fleets and the heavy-duty sector, where 95% of new truck registration is diesel. The speaker critically noted that electrification and emissions reduction objectives in the heavy-duty and the personal car sectors are unlikely to be achieved by 2030, 2035 or 2040.
She further addressed the inconsistency and incoherence of the EU legislation. She took the example of the Renewable Energy Directive (RED) and Emissions Trading System (ETS), noting that renewable fuels are classified as zero-emissions, whereas this is not the case in the Automotive Package. She then stressed the importance of swiftly addressing the definition of zero-emission within the Automotive Package, in order to have more coherence between the legislation and reality.
Finally, Ms Tomasic MEP critically assessed previous remarks on electric vehicles, expressing that she does not necessarily agree with prioritising them above everything else. She outlined how the focus is mostly on battery electric vehicles when discussing the future of EU mobility but argued that not enough attention is given to the suppliers of the electricity required for these vehicles, suggesting further discussion on this issue.
Ian Johnston thanked Zala Tomasic MEP for her contribution to the discussion. Building on Mr Corbin’s earlier remarks, the moderator directed the panel’s attention to the Automotive Package and asked the panellists what were the main challenges that the industry was facing in trying to achieve the envisioned objectives, and how the EU could help them meet those objectives. He first invited Massimiliano Vascotto to reply to the question.
Massimiliano Vascotto replied that the current reality shows that the market adoption of some of these zero-emission technologies is not in line with what the European Commission estimated in the past, nor with what is expected in the future. He emphasised that the market is unpredictable, and that what the industry needs is flexibility in terms of the time to be able to bring consumers on board into the path toward zero emissions. Mr Vascotto further explained that this entails a variety of technologies, more time to reach the targets, and any measures that could contribute to obtaining a smooth transition.
He then stressed that several companies across the sector were already investing in different technologies, namely concerning the decarbonisation of fuels both for existing fleets and for new vehicles. He argued that this process will probably require more time than what was envisioned by the European Commission in its impact assessment, as the market reality is not the same across Member States, and a full adoption of the required standards is really tricky.
He concluded by stating that flexibility is the crucial element for the industry to move forward with this transition, which is what ACEA is ultimately asking for.
By picking up on Massimiliano Vascotto’s remarks on flexibility, the moderator asked Karsten Schulze to share his views on the matter. Furthermore, he asked him whether he thoughtinks that consumers will would adopt electric vehicles to the extent of achieving the targets set by the EU.
Karsten Schulze responded by noting that the global automotive market is not currently electric, which poses a significant challenge for the industry. Therefore, he stressed the need for the EU to establish rules and regulations that enable the industry to produce electric vehicles for all global markets.
He then agreed with Mr Vascotto and Ms Tomasic MEP’s previous remarks regarding the importance of flexibility, and expressed the need for an open market that accommodates all technologies that are climate-neutral. Finally, he emphasised that the real focus should be on reducing CO2 emissions, regardless of the technology being employed.
Echoing the previous speakers’ observations, the moderator recalled the EU’s need to decarbonise its economy and move away from combustion engines. He then asked Michael Bloss MEP to share his opinion on the request for flexibility and on the matter of taking EVs off their pedestal.
Michael Bloss MEP addressed earlier remarks regarding flexibility, arguing that they reflect the points of view of the industry but not those of consumers. He pointed out that biofuels and e-fuels are not happening any time soon. He took the example of Porsche’s wind turbines in Chile producing very little amounts of e-fuels which are not ready to be used economically. He then added that car manufacturers are not really discussing e-fuels, as they do not consider them to be a viable solution.
Regarding biofuels, especially the imported ones, he noted that they have a higher CO2 emission rate than normal diesel. In this sense, he warned that the industry should tell consumers that, if they want to do something for the climate but use normal biofuels, they should be aware that these biofuels are actually worse than normal fuels. He also explained that advanced biofuels, despite not being available in high amounts, even have 20% of the CO2 emissions of normal fuels.
Mr Bloss MEP then moved on to talk about plug-in hybrids, whose emissions are four times higher than those reported by their WLTP (Worldwide Harmonized Light Vehicle Test Procedure) test. By addressing the industry, the speaker stressed that it is important for consumers to know the reality about these vehicles and their CO2 emissions.
Following the thread of the conversation, the moderator asked Mr Bloss MEP about the Automotive Package.
Michael Bloss MEP immediately replied that the Automotive Package refers to the use of biofuels and advanced biofuels, but argued that, contrary to the European Commission’s opinion, they are not carbon neutral contrary to the European Commission’s opinion.
By addressing both car manufacturers and the European Commission, he warned about their attempt to amend the definition of these fuels in the RED, classifying them as climate-neutral. He continued by claiming that this would amount to introducing misleading information into the legislation, which would lead citizens to believe that they would buy climate-neutral cars.
Echoing Mr Schulze’s remarks on the utility factor, he pointed out that the commonly cited narrative that plug-in hybrid vehicles operate 80% on electric power is also incorrect, claiming instead that they actually go only 20% in electric mode. He hence concluded by reiterating the importance of not deceiving consumers with misleading information.
Ian Johnston thanked Michael Bloss MEP for his intervention and then invited Zala Tomasic MEP to share her views on earlier remarks concerning flexibility and the need for transparency towards consumers. He also asked her how the EU could deliver the Automotive Package.
Building on Michael Bloss MEP’s previous observations, Zala Tomasic MEP agreed that it is essential to be honest with consumers and to discuss more about the reality behind EV batteries. She took the occasion to argue that, while significant attention is given to the production of biofuels and their projected emissions, several critical aspects of electric vehicles are often overlooked, namely lithium mining for batteries, the disposal of the batteries at the end of their lifecycle, how the EU is dependent on China and the CO2 emissions deriving from imports, the cars being manufactured in the EU, and the use of coal to produce the energy needed. She concluded by raising questions regarding the mining of battery materials and the prospects for battery recyclability in Europe.
Following Zala Tomasic MEP’s remarks, the moderator invited Edoardo Turano to reply. He maintained the focus on consumers and asked how the EU can deliver the Automotive Package, as well as how it can incentivise citizens to buy into it.
Edoardo Turano promptly responded that the European Commission proposal aims to be a balancing act between keeping the long-term perspective of investment allocation for both the industry and consumers, while providing more flexibility in recognition of some industry needs. He referred to the level of flexibility, and added that this issue was under discussion with the co-legislators.
Regarding the various points raised by the previous speakers, Mr Turano started by addressing the issue of EVs’ technological supremacy, and explained that, as stated by the industry, electric vehicles are more efficient than combustion engines. He further explained that analysts had recently projected a decrease in battery prices, while China was facing over-capacity and Europe was extensively investing in these technologies. He then referred to the Battery Booster Facility introduced by the European Commission to ensure these investments materialise and deliver tangible results for the EU.
He then moved on to the climate dimension and, whilst acknowledging that emissions reduction is essential irrespective of the technology used, he called for a broadening of the scope of the reflection, since climate neutrality is an economy-wide objective. He argued that Europe has to achieve an economy-wide climate neutrality, with all sectors contributing to decarbonisation objectives. He further explained that even sectors where no viable alternatives to renewable fuels exist have contributed to achieving Europe’s climate goals. In this respect, picking up on MEP Tomasic’s earlier remarks, he stressed that the European Commission had included the cap in its proposal to ensure sufficient renewable fuels for sectors such as aviation, maritime, and the industrial ones. This was carefully studied in the Impact Assessments.
The moderator followed up with Mr Turano by asking how much biofuels would make up in the energy mix under the Automotive Package.
Edoardo Turano replied that the figure depended on how much the fuel supplier would be able to put on the market, whilst pointing out that the aim was to leave space rather than creating an incentive, which had already been established in the Renewable Energy Directive, which would be reviewed during 2026 as specified in the European Commission’s most recent Work Programme.
Mr Turano continued by stating that dependence on China must be avoided when it comes to batteries. At the same time, he noted that the EU is likely to rely on other countries for biofuels, feedstocks and e-fuels, especially because of the production of renewable solar energy in countries outside of Europe. He further referred to the Critical Raw Materials Act (CRMA) and the European Commission’s RESourceEU Action Plan as the instruments to enhance a circular economy approach so that, when the EU imports critical raw materials, it will be able to create a value chain that also offers jobs for citizens where critical raw materials are recovered and reused. He also highlighted that this approach cannot be applied to fuels, as once they are consumed, they cannot be recovered. This implies that there is a difference between the two types of dependency, he stated.
Zala Tomasic MEP directly followed up on Mr Turano’s remarks on biofuels, pointing out that biofuels from road transport are not saved to be used in other sectors. She explained that, in the production of fuels for the aviation and maritime sectors, the by-product serves as biofuels for road transport. She also added that, if these biofuels are not utilised, they would just be thrown away.
Edoardo Turano intervened by stating that the EU must ensure that the fuel industry focuses on the sectors where their use is unavoidable. Referring to Zala Tomasic MEP’s previous observations, he stressed that there would be a by-product, which is why the European Commission envisioned a lifeline in its approach. He continued by explaining that this stood behind the rationale of the European Commission’s shift from a 100% target to a 90% one, whilst including a 3% plus 7% flexibility in the proposal, which in total amounts to 10%, notably the market available for liquid fuels. This will increase over time but, until 2040 and probably 2050, the existing fleet of cars will need to use decarbonised fuels. He concluded by arguing that the fuels industry, enabled by the European Commission’s proposal, has significant opportunities to pursue a profitable approach and a viable investment case for what is required in the future.
The moderator then steered the discussion further on the concept of affordability before opening the floor for questions from the audience. He referred to the rise in petrol prices over the previous weeks and, echoing Mr Turano’s earlier remarks, noted that electric vehicles were less affected by this increase. He also recalled Mr Vascotto’s observation that consumers are reluctant to buy such vehicles, as these are considered too expensive.
The moderator then asked Karsten Schulze how the EU could tackle this affordability question, and whether this matter was holding Europe back from meeting its climate, industrial, and economic goals.
Karsten Schulze responded that it is essential to look at the total market from the consumer perspective, pointing out that consumers are unsure of what they can buy and what the future product will be. He clarified that the issue at the moment is about regulation rather than technology, and that consumers do not necessarily understand what is regulated by the EU and what is included in the Automotive Package. Consumers want reassurance on what they will be able to buy, he added.
Mr Schulze explained that consumers share a degree of uncertainty regarding the most suitable technology for the future. For several of consumers, he highlighted that battery electric vehicles are currently not the best most suitable solution option at the moment due to a lack charging infrastructure, especially particularly in urban areas where several houses residential buildings cannot have accommodate rooftop solar cells on their roofs installations or provide individual wall boxes for charging points. He noted that this poses a challenge to consumers, who are not incentivised to buy electric vehicles. He then concluded by stating that the first step must be for the EU to provide the adequate charging infrastructure; otherwise, citizens are unlikely to buy electric cars.
Ian Johnston invited Edoardo Turano to reply.
Edoardo Turano promptly replied that he did not agree with Mr Schulze’s assertion regarding a lack of clarity in the legislation for consumers. He stressed that a transition to electric vehicles is not expected to happen in a short timeframe. He recalled that the target set out in the European Commission’s proposal is for 2035, and that it already takes into account the development of the infrastructure and the battery value chain, while the implementation of the EU Emissions Trading System 2 (ETS2) was also being discussed.
Mr Turano further noted that the target has been reduced to 90%, allowing consumers to opt for alternative powertrains. He concluded by reiterating that, from a regulatory perspective, it has never been suggested that, from the following day onwards, only electric cars would have to be sold.
Michael Bloss MEP stepped in to comment on the affordability matter, stating that affordable e-cars are already extensively developed in China. He noted that the European Union is currently putting tariffs on these cars to shield the European market and safeguard European car manufacturers, who cannot compete with these cheap cars. He then stated that, from a pure consumer perspective, it would be better to let these affordable vehicles into the market, but he agreed with the need to protect the European industry. He emphasised again that cheap electric vehicles are already a reality; however, European manufacturers decided to prioritise high-end cars, based on the assumption that this would lead to greater profit margins and that it would then trickle down. This approach, he noted, did not prove to be successful.
Mr Bloss MEP then turned to the issue of charging time for electric vehicles, challenging some of the earlier remarks. He highlighted that new electric cars’ charging performance is almost equal to ICE vehicles’ refuelling time, going from 10% to 80% in a short period.
The speaker went on to address the issue of prices in the charging stations. He argued that, on this matter, Europe could do better. Currently, some charging operators hold a near-monopoly and charge consumers up to four times the cost of electricity compared to home charging, he explained. He suggested that it would be better for consumers to have more options, enhancing competition and enabling operators to lower prices. He continued by emphasising that there is room for Europe to implement better measures, even though, with the current high fuel prices, it is more cost-efficient to drive an electric car. By challenging previous observations, he reiterated the rapid charging time of these vehicles and argued that, for the average consumer, purchasing electric vehicles would not be significantly different fromthan fuel-powered cars.
Picking up from previous speakers’ remarks regarding the origin of energy resources, Mr Bloss MEP set out the Greens Political Group’s commitment to the matter. Whilste acknowledging the discussions surrounding the battery sector, he argued that an equally in-depth analysis should be applied to the oil industry. He went on to explain that greater attention should be paid to the sources of oil, including the environmental impact in the countries of extraction and refinery, as well as the human rights violations.
Zala Tomasic MEP observed that, when it comes to affordability, the situation varies considerably across different EU countries. She explained that, although the prices of electric cars are broadly similar across the European Union, average salaries are not. She added that the transition to electric mobility and the costs of these vehicles are likely to have a greater impact on markets in lower-income countries.
She then argued that, if EVs are indeed regarded as the best technology, as well as the cheapest alternative, demand would not be a concern and would not require regulation. She noted that China had not adopted such an approach, and that other countries that tried to regulate demand had ultimately failed. Challenging previous remarks, she further contended that banning all other products on the market to boost the European industry is not the correct approach when claiming to offer a better product. She then suggested displaying the necessary enabling conditions and letting the market decide.
The speaker also clarified that she is in favour of investing in EVs, but warned about banning other technologies. She then concluded by recalling that the European Union had set the standards for carbon neutrality, and that the most suitable technologies to achieve these goals should now be determined by the market.
Massimiliano Vascotto agreed with Zala Tomasic MEP and explained what the industry requires from the EU. He stressed that avoiding setting really high targets by 2030 could enable more flexibility across the market. He also claimed that refraining from mandating a Europe-based supply chain for electric vehicles would have a significant impact on price elasticity. He further explained that pushing to have products made in the EU would inevitably have an impact on prices, which he argued is not compatible with making affordability a top priority.
Mr Vascotto also noted that avoiding to select one technology over another is not the most effective approach to address the affordability issue. He concluded by stating that there is no one-size-fits-all solution for Europe when discussing automotive mobility.
Edoardo Turano highlighted that, from the European Commission’s perspective, the focus is not on regulating demand, but rather on establishing a fully-fledged industrial policy for a new value chain to emerge in Europe. He added that, for this to occur, a certain degree of regulatory action is necessary, especially in the early stages of the process. Such regulation, he argued, is not only intended to drive demand, but also to create a new type of industry, which the European Commission envisaged as beneficial for the future.
Moving to the affordability issue, he explained that it requires economies of scale. In this context, he highlighted that the European Commission had introduced the CO2 standards to provide a signal for long-term investments, thereby enabling prices to decrease in favour of consumers. He warned that, if this approach was repeatedly called into question, economies of scale would not be created, the battery value chain in Europe would fail to develop, and the EU would be increasingly reliant on imports from China, thus entering a negative loop that would be difficult to reverse. The CO2 standards framework, he emphasised, was introduced precisely to prevent such a scenario.
Mr Turano continued by highlighting that the implementation of stricter CO2 standards, as occurred in 2020 and 2025, had been followed by a significant uptake of electric vehicles, also when it came to model availability. He noted that both the European Court of Auditors, as confirmed in its policy assessment, and the European Commission agreed that the regulation is effective in driving change into the market and, in turn, in encouraging consumers to buy electric vehicles.
Echoing Zala Tomasic MEP’s earlier remarks on affordability, Mr Turano agreed on the largely different situation across EU Member States. He mentioned Denmark as an example, and noted that more than 60% of the cars in the country are already electric thanks to a very conducive fiscal policy. By contrast, other EU countries are significantly lagging behind, he pointed out. In this regard, he explained that the European Commission is committed to collaborating with the Member States to create the necessary conditions for these vehicles to become affordable across all of them. He continued by emphasising that the European Commission’s forthcoming recommendation for Member States, as well as the Social Climate Fund and the revenues from ETS2, are all measures intended to ensure the affordability of electric cars.
He also stressed that it would be essential that these vehicles become available on the second-hand market which, for several Member States, represents a significant part of their automotive sector. In this context, he claimed that the greening corporate fleets proposal, based on the European Commission’s Impact Assessment, will help the second-hand market have sooner electric vehicles, which will then become affordable to a larger part of the EU population.
Mr Turano then concluded by reiterating the role of the CO2 standards in trying to tackle affordability, rather than undermining it, as other speakers previously suggested.
The Q&A session covered the following topics: low demand for EVs from consumers; the establishment of minimum thresholds for EU home-made lithium batteries as a means to create lead markets and demand within Europe; the issue of uncertainty and consumers’ lack of trust when it comes to the infrastructure for electric vehicles; the issue of long-term investments’ stability; critical raw materials in Europe; the role of fiscal policies in driving the transition toward zero emissions; the dependence on Chinese batteries and the need to incentivise the European automotive industry to build its own batteries; the massive devaluation of EVs compared to ICE vehicles; how to ensure that the Industrial Accelerator Act and a push for European-made technologies does not create a price premium that makes sustainable mobility in the EU unaffordable; CO2 standards for EVs being moved from 100% to 90% by 2035 in the European Commission’s proposal whilst requiring lower carbon steel or lower-emission fuels; the acknowledgment of the role of lower-emission fuels in 2035 rather than in the current CO2 standards.
Do you wish to know more about the issues discussed in this debate? Then check out the selected sources provided below!
ADAC Commitment in Europe, ADAC
Automotive Package, European Commission
Industrial Accelerator Act, European Commission
Battery Booster Facility, European Commission
RESourceEU Action Plan, European Commission
Renewable Energy Directive, European Commission
EU ETS – Emissions Trading System, European Commission
Critical Raw Materials Act, European Commission
Social Climate Fund, European Commission
Circular Economy Act, European Parliamentary Research Service
