Just Transition

As the automotive industry undergoes a transformative shift towards sustainable and digital technologies, a fair and balanced transition is crucial
Policy priority:
About the spotlight

226,000

New jobs created through the electric vehicle supply chain before 2030.

501,000

Auto supplier jobs in internal combustion engine powertrain components production are expected to become obsolete if technology is phased-out by 2035.  

1,7 million

Direct jobs at automotive suppliers in the EU.

78%

Auto suppliers are committed to upskilling/reskilling their workforce.

As the automotive industry undergoes a transformative shift towards sustainable and digital technologies, a fair and balanced transition is crucial. Technology-openness allows us to embrace a range of sustainable options while ensuring that the needs of all stakeholders – particularly workers and communities that may be negatively affected by this transition – are met. A Just Transition should prioritise supporting automotive suppliers and their workforce, ensuring skills development, job security, and fostering innovation. By investing in people and embracing all technological solutions, we can build a resilient, future-proof industry, ensuring that the transition supports both economic and environmental goals.  

Key aspects of a just transition within the auto industry include: 

  1. Worker Training and Reskilling: Many workers in traditional manufacturing roles, particularly those involved in producing internal combustion engines, may require retraining to adapt to new technologies associated with electric vehicles, such as battery production and software development. Programs should be established to provide upskilling opportunities to ensure workers can transition smoothly into new roles. 
  1. Job Creation: While some traditional auto manufacturing jobs may be lost in the shift to EVs, new jobs can be created in sectors such as battery manufacturing, charging infrastructure development, and software engineering. A just transition aims to ensure that these new jobs are accessible, fairly compensated, and located in the same or nearby communities. 
  1. Supporting Affected Communities: Many communities depend heavily on auto manufacturing jobs. A just transition should involve investments in these communities to support economic diversification, infrastructure development, and support programs to mitigate any negative impacts during the transition. 
  1. Environmental Considerations: The production of electric vehicles comes with its own environmental challenges, such as the mining of lithium and cobalt for batteries. A just transition must address these issues by ensuring sustainable sourcing practices and minimizing environmental harm throughout the supply chain. 
  1. Stakeholder Engagement: Engaging workers, labour unions, communities, and environmental groups in discussions about the transition is essential. Their input can shape policies and initiatives that are equitable and effective. 
  1. Policy Support: Government policies can play a critical role in facilitating a just transition, from providing incentives for green technology investments to funding retraining programs and ensuring that regulations support sustainable practices without harming existing workers. 

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