Povjerenstvo za politiku teritorijalne kohezije i proračun EU-a

Pravedna i održiva tranzicija u regijama s automobilskom industrijom

Opinion factsheet

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Objective

The need for a just transition mechanism for the automotive regions has been highlighted by the CoR opinion on the Regulation on CO2 emission standards for cars and vans (phase-out of the traditionally powered internal combustion engine). This decision will trigger a profound industrial and societal transformation of the automotive industry and our mobility system which will require policy and budgetary responses.
The CoR's "Automotive Regions Alliance" has been assigned an advisory role in the progress reporting until 2026 (in the above-mentioned Regulation). The voice of the automotive regions and the CoR also needs to feed into the discussion on the next MFF and a possible JTF 2.0.

The CoR's "Automotive Regions Alliance" needs to be supported by political positions of the CoR in order to reach the objectives it has been assigned in the Regulation on CO2 emission standards for cars and vans, where it was identified as one of the key stakeholders for reporting on needs, challenges and funding gaps for a just transition of the automotive regions.
At the same time, the opinion should also feed into the discussion in the European Parliament, where the REGI Committee is preparing an own-initiative report on this topic.

Impact

The Union needs to respond to major transformations of our regions that result from the need for a green economic transition. This will affect regions and citizens, territorial and social cohesion. The automotive regions' transition becomes highly relevant for the European automotive industry to remain competitive. This is why the European Committee of the Regions has been facilitating the founding of the "Automotive Regions Alliance (ARA)". The ARA has been identified in Regulation (EU) 2023/851 on strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles as a key partner for the European Commission in drafting the report on a transition towards a climate-neutral automotive industry. The CoR has been referred to explicitly in a legal text of the EU for the first time.

Essential points

THE EUROPEAN COMMITTEE OF THE REGIONS

- underlines that this dual transition will have a far-reaching impact on regional automotive ecosystems. An overarching European transition strategy is therefore crucial for the EU, as the European automotive industry is highly integrated across national borders;

- calls for a comprehensive territorial impact assessment on the employment consequences of the shift towards a zero emission automotive industry. The impact varies across regions, depending on how the regional automotive industry is structured;

- stresses that the EU must take into account the various technical solutions in the automotive sector. As long as the new technological solutions are carbon neutral from their production to their use, they should be subject to competition in innovation among industry and research, especially in an area as globally interconnected as the automotive industry;

- stresses that the transition of the automotive industry goes hand in hand with structural change in the regions, and underlines the need to help shape that change in particular and to explore appropriate support options, such as the Just Transition Mechanism (JTM) or a just transition strand in the next cohesion policy after 2027;

- stresses the need to involve citizens in this transition process to ensure public backing;

- stresses that training people in the skills needed for the transition process in the automotive sector is a cornerstone of the required measures;

- stresses the importance of EU State aid law and the role it plays in crises, and is convinced that State aid rules need to be adapted so that economically strong automotive regions too can further consolidate their innovation clusters;

- calls on the European Commission, as part of the mid-term review of the current multiannual financial framework (MFF), to provide funds for the just transition of automotive regions and automotive suppliers, regardless of where they are based, and to take this into account now while planning the next MFF. In this context, the regions must be allowed flexibility in the use of funds, as the challenges vary widely.

Timeline