Germany's auto industry calls for stricter climate targets for fuel suppliers

Germany's auto industry calls for stricter climate targets for fuel suppliers

Automotive News Europe — 2024-08-22

Automotive Industry

VDA says Germany needs to go beyond the EU's guidance on fuels if it wants to achieve its 2045 goal of climate-neutral road traffic.

Germany needs to go beyond the European Union's guidance on fuels if it wants to achieve its 2045 goal of climate-neutral road traffic, auto association VDA said.

The European Union's Renewable Energy Directive (RED III), adopted late last year, is not ambitious enough, the VDA said in a statement on 21 August 2024.

"Politicians are called upon to establish incentives for the ramp-up of renewable energy sources and thus to guarantee and promote investment," VDA President Hildegard Mueller said.

Germany's automotive industry wants to ensure that CO2-neutral fuels such as biofuels and e-fuels come onto the market in sufficient quantities to power the 40 m combustion-engine vehicles that will still be on the streets even if the government hits its target of 15 m electric cars by 2030.

The VDA is concerned that the 2030 targets do not create enough incentive for the mineral oil industry to invest in the production of climate-friendly fuels.

The EU target is for an at least 29% share of renewable energy by 2030 or a 14.5% reduction in greenhouse gases compared with emissions that would have been created by fossil fuel use.

Germany, Europe's largest economy, has already decided to aim for a higher reduction rate of 25%, but the VDA believes 35% is necessary instead.

The EU regulation also stipulates a quota for biofuels and synthetic fuels of 5.5%, with a 1% minimum synthetic fuel share.

For the latter, the VDA calls for at least 5%.

Further interim targets should also be set to reduce greenhouse gas emissions by 60% by 2035, 90% by 2040 and 100% by 2045, the VDA said.

"In the interests of climate protection, fossil fuels should no longer be allowed to be sold at German fuel stations from 2045," added the association.