Automotive suppliers interviewed by Politico on fair access to EU taxonomy
Politico Europe has recently raised the issue of fair access to the EU Taxonomy for automotive suppliers.
In an article published in November, the Brussels-based policy outlet interviewed CEOs from Bosch and ZF Friedrichshafen on various issues currently impacting the automotive supply industry, including the EU taxonomy.
The EU Sustainable Finance Taxonomy is intended to direct financing to sustainable activities. As it currently stands, EV component production is not eligible as sustainable investment, as is the case for vehicle assembly. Key R&D and manufacturing activities of technologies related to EVs may find it hard to be recognised as sustainable investment, where activities related to the assembly and production of the vehicles are. This could reduce the required funding towards critical innovation, and puts at risk the success of the mobility transformation.
The law has already entered into force, but the list of activities that can be eligible can still be updated. As highlighted by Tier 1 top executives, even though up to 70% of a car’s value comes from components, only OEMs can access taxonomy financing. This distinction stems from concerns on validating which components are destined for EVs. But as explained in the interviews, today’s technology makes possible to track individual parts and validate their final destination.
The article concludes by reporting a possible opening in this direction by a European Commission official, emphasising the importance of keeping European regulatory conditions competitive.
In: CLEPA News