For a swift mobility transformation
#FairTaxonomy
What are the limitations of taxonomy as it currently stands?
In order to apply the EU taxonomy to a rapidly evolving economic environment, the regulation provides a broad categorisation identifying ‘sustainable’ activities. The Commission provides guidance to companies and investors on how to interpret these categories through notices that can be amended, if needed, due to technological and economic developments.
The notice considers both the purchase of a zero-emission vehicle component and its installation in the car by a vehicle manufacturer as sustainable business activities, but does not recognise the production of that very same component as sustainable.
This approach will refrain investors from focusing on automotive supply companies, risking their innovation capacity in the midst of an unparalleled mobility transformation.
How will a #FairTaxonomy enable a swift transition?
In order for automotive suppliers to be able to deliver sustainable solutions faster:
- The European Commission should amend its notice so that economic activities related to component production are subject to the same conditions as the manufacturing or assembly of the final product, if their use in a zero-tailpipe emission vehicle can be verified.
- Additional measures may also be needed for enabling activities upstream in the supply chain, which have a degree of separation but are indirectly linked to the assembly of the final product.
The transition to carbon-neutral mobility will not succeed without the contribution of the entire supply chain. Automotive suppliers are asking for a fair taxonomy that equally recognises sustainable activities within sectors and facilitates investments along the supply chain to ensure the success of the green transition.
