Mediaroom

• Unclear definitions in the delegated act are risking the green mobility transformation

• European Commission’s Platform on Sustainable Finance looking at green finance of  technology industries, has no representatives from transport manufacturing 

Brussels, 17 February – Automotive suppliers in the EU, associated in CLEPA, welcome the Commission’s initiative of renewing the mandate of the Sustainable Finance Platform, with the objective of ensuring an effective dialogue between policymakers and industry representatives on the implementation of the EU Taxonomy Regulation. However, the lack of representation of the automotive supply industry in this platform raises major concerns.

CLEPA calls upon both the Platform and the European Commission to urgently act so that automotive suppliers have sufficient access to capital to finance their significant investments in climate-neutral mobility. The association remains ready to work together with the platform and policymakers and has published a statement today as a basis to facilitate future exchanges. The statement confirms the sector’s interpretation that economic activities related to component production should be 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.

90% of the cost to produce each electric vehicle comes from its components

“Automotive suppliers are responsible for 58% of the total R&D investment in e-mobility, and 90% of the cost to produce each electric vehicle comes from its components. This is a huge contribution towards the green mobility transformation. These companies are at the core of the advancements in efficiency and safety of the vehicles that we see on the roads, but they are also reskilling thousands of employees, adapting their plants and their product portfolios. Without automotive suppliers, climate-neutral mobility is just impossible,” says CLEPA’s Secretary General, Benjamin Krieger. 

Vague formulations in the Taxonomy Delegated Act on Climate Change, and significant inconsistencies in the recently published interpretation notice are threatening to lead to underdeveloped supply chains for low-emission mobility and highly heterogeneous reporting to financial markets. 

Benjamin Krieger goes on to say: “There is no green future, without access to green finance. The EU Taxonomy Regulation should facilitate and direct investments across activities within the supply chain that contribute equally to environmental objectives. There is a significant risk that important parts of the supply chain for zero emission vehicles remain underdeveloped.” 

European automotive suppliers call upon the European Commission to prioritise the restoration of the level playing field concerning access to capital for manufacturers and suppliers of low-emission technologies. CLEPA experts stand ready to advise the Sustainable Finance Platform and would welcome any opportunity to exchange with the platform.