Brussels, March 6, 2025
Check against delivery
Ladies and gentlemen,
What perfect timing! When selecting the date for EVision 2025, you couldn’t have known that it would coincide with the launch of our industrial action plan for the automotive sector. But since it does, this is an excellent opportunity for me to present our plans to support e-mobility.
First, let’s take a look at the big picture.
Upon taking up my duties as Commissioner for Sustainable Transport and Tourism, I pledged to work hard to make transport more competitive, more sustainable, more resilient, smarter, and safer. This is what Europeans want and need. It is also what the new geopolitical situation demands and what is required for our future prosperity.
The automotive sector plays a crucial role in this big picture. It contributes 7% to EU GDP, generates a trade surplus of more than 100 billion euros, and employs 13.8 million people. Many of us rely on the vehicles it produces daily.
Despite the increased uptake of electric vehicles, road transport still accounts for 73% of transport emissions—clearly too high. We must also address the many pressures on the automotive industry, from supply chain risks and high energy costs to staff shortages, increased protectionism, and over-reliance on supplies from non-EU countries.
The Draghi report highlights the immense economic potential of transitioning to sustainable and smart mobility. It is not just an opportunity; it is an economic necessity if we want to maintain a vibrant and competitive industry in the EU. Competition is fierce, and European companies are falling behind in key strategic technologies such as batteries and autonomous driving.
For the EU to remain a global leader in the automotive sector and maintain a strong production base, we need better support for the entire automotive value chain. The EU Clean Industrial Deal sets out a framework to boost investment, helping Europe’s automotive industry compete globally. Our industrial action plan for the automotive sector builds on this and follows extensive dialogue with key representatives from the industry. I know that quite a few of your organizations were involved, and I want to sincerely thank you for your contributions.
The Plan introduces flagship initiatives in five key areas that I consider game-changing:
- Innovation and digitalization
- Clean mobility
- Competition and supply chain resilience
- Skills
- A level playing field
Now, let me say a few words on electrification and batteries.
Electrification is a global megatrend. Last year, one in five cars sold worldwide was an electric vehicle, and every market forecast predicts accelerating growth. The sector is wisely investing heavily, but market investors need regulatory stability, while potential buyers need certainty. Calls to fundamentally change the existing regulatory framework risk undermining both.
That does not mean that the framework cannot be adjusted to reflect new developments and needs. Our action plan provides the sector with additional breathing space for compliance with CO2 reduction targets over the next three years. However, this does not mean we are abandoning CO2 reduction goals. If a manufacturer underperforms in one or two years, it will have to catch up in another year. This flexibility is strictly limited to the period 2025-2027.
Furthermore, the review of the CO2 emissions standard legislation will be accelerated, and we will also assess technological developments as part of this process. As previously announced, e-fuels will have a role to play.
On the demand side, we will introduce legislation on corporate fleets, which currently account for around 60% of EU car registrations. These vehicles have higher mileage and enter the second-hand market faster than private vehicles, making them essential for cutting emissions and strengthening the European automotive industry. While we work on the legislation, we also published a Communication on corporate fleets yesterday, advising Member States on how to use fiscal incentives and other measures to accelerate the transition.
To further support consumer trust, we will revise the car labeling directive, potentially introducing content requirements for components sold in the EU. The action plan also includes measures addressing battery health and reparability, both crucial for developing a strong second-hand market, where most Europeans buy their cars.
Charging Infrastructure and the Grid
Sufficient recharging infrastructure is equally important. The Alternative Fuels Infrastructure Regulation sets clear targets, and we are already seeing results. However, more work is needed to ensure an even spread across regions. We are looking into providing technical assistance for Member States and working on a Sustainable Transport Investment Plan, which will help accelerate the rollout of recharging infrastructure.
This year alone, we will invest 570 million euros in recharging and refueling points under the Alternative Fuels Infrastructure Finance Facility. Infrastructure for heavy-duty vehicles requires special attention, which is why I am pleased to announce that we are launching a clean transport corridor initiative for the TEN-T network. We recommend that areas within these corridors be fast-tracked by Member States for quicker permitting.
We are also exploring ways to speed up grid connections, which remain a major bottleneck. The EU Action Plan for Grids focuses on increasing transparency on grid hosting capacity and supporting grid operators in anticipating demand. The Grid Package and Electrification Action Plan, planned for 2026, will go further, introducing measures to optimize existing grid infrastructure.
Additionally, I want charging stations and their grid access to be recognized as projects of overriding public interest, ensuring that permitting procedures move faster. We are already issuing recommendations to Member States on this and are considering making it mandatory.
Electric vehicles present challenges for the grid but also offer new flexibility to the electricity system. Smart charging and bi-directional charging can reduce pressure on the grid and facilitate the integration of renewable energy. EU legislation already requires recharging infrastructure to be compatible with smart and bi-directional charging, where appropriate. The Commission will actively support Member States in implementing these technologies, including by facilitating best practice exchanges.
Furthermore, we will assess whether electric vehicles are ready for smart and bi-directional charging as part of the type approval process. Additionally, we will explore the potential for a regulatory sandbox for Vehicle-to-Grid (V2G) pilots, allowing companies to experiment with innovative solutions.
Conclusion
Ladies and gentlemen, as you can see, we have a lot in the pipeline. This reflects the importance of the transition to e-mobility and the challenges we must overcome.
I look forward to working with you as we navigate these challenges together. Only through cooperation can we overcome obstacles and take the necessary steps forward—for our citizens, our businesses, and our Union.
Thank you very much.
Source – EU Commission
Eurelectric: Unlock EV flexibility to save money for customers and optimise the power grid
Brussels, 5 March 2025
Translations available in French, German, Spanish and Italian.
An electric vehicle (EV) owner in Europe could save €450 to €2,900 every year by utilising both smart & bidirectional charging – shows Eurelectric-EY’s new study. Through smart charging, EV batteries can store excess electricity and with vehicle-to-grid (V2G) technologies, they can sell it back to the grid at times of peak demand, helping balance the power grid, reduce congestion and integrate variable renewables. Yet, consumers lack clear economic incentives to provide this service. Unlocking this potential requires clear price signals, enhanced access to flexibility markets, and interoperable data across the e-mobility ecosystem.
Flexibility needs are set to double in the next five years in Europe as more renewables enter the system and end-use sectors electrify. The study estimates that EV batteries could provide around 114 TWh of battery capacity by 2030 – enough to power 30 million homes every year – equal to around 4% of Europe’s projected annual power demand. Yet, this potential remains largely untapped.
“Electric cars are fun to drive. Our study shows they can help EV drivers make money while stabilising the power system, but customers need choice in the market and clear incentives to act.” – Kristian Ruby – Eurelectric’s Secretary General
EV sales have passed the early adopters stage and must now convince mainstream consumers. Yet, high upfront costs remain the main barrier to EV adoption, which slightly declined year-on-year in 2024, while already picking up in 2025. By providing flexibility, however, consumers could benefit from much lower running costs, bringing the total cost of EV ownership below that of conventional cars.
Charging availability is another source of concern. Public chargers grew by 30% in 2024, reaching more than 820,000 units but must grow even faster to get to the Commission’s 3.5 million target by 2030. This means installing 8,600 chargers per week.
“For consumers to play an active role in flexibility, the entire e-mobility ecosystem must help them consider EVs as something more than simply a means of getting from A to B. Easy-to-use smart-charging propositions with clear cost benefits are critical.” – Serge Colle – Global Power & Utilities Sector Leader at EY
On the grid side, distribution system operators (DSOs) could benefit from around €4 billion savings annually as higher flexibility partially reduces infrastructure expansion needs. Yet, this can only succeed if DSO can employ real-time digital monitoring and have access to interoperable data at no cost.
Let’s turn potential into power.
Read the Report
Note
Eurelectric represents the interests of the European electricity industry. We seek to contribute to the competitiveness of our industry, provide effective representation in public affairs and promote the role of electricity in the advancement of society.
Source – Eurelectric