Latest news with #greentransition
Forbes
4 days ago
- Automotive
- Forbes
Will The EU Roll Back 2035 EV Monopoly Target To Save Its Industry?
The European Union's plan for a new electric vehicle monopoly by 2035 will falter as sales disappoint and China's EV push gains momentum. Brussels faces an uncomfortable choice: water down its green transition, or risk the health of its flagship auto industry. The EU is being urged to dilute its plan that new EVs will be the only game in town by 2035 by widening the possibilities with hybrids and e-fuels. Green groups are adamant EVs should be the only option. Industry experts say EU regulations to curb CO2 emissions in the name of saving the planet are having unfortunate side effects. They are exposing Europe's carmakers to an existential threat from China not only in home markets but in global markets too. Leading mass carmakers like Stellantis and Volkswagen are being forced to close factories. Their global markets are being undermined as well. Even the likes of Germany's BMW, Mercedes and Audi are being exposed in the electrification stakes. The EU has raised tariffs on electric cars from China by an extra 17% to 35.3%, on top of the existing 10% car import duty. But this hasn't slowed China's business much because of its huge lead in efficiency. Chinese manufacturers have also switched their focus to plug-in hybrids which don't carry the extra tariff. The EU is between a rock and a hard place. Save the auto industry and millions of jobs by watering down the CO2 regulations and be accused of climate change denial. Or maintain the hard line, please environmental lobby groups, and weaken the industry. Politics will decide on this issue, which has become a left/right controversy. The left has traditionally been on the side of climate change absolutists. The right has been more willing to compromise. Recent elections for the EU, and the member states, have shown a move to the right, but it's not yet clear if this will herald a change of policy. In mid-2021 when the EU drew up its plan to phase out the sale of new combustion engine vehicles by 2035 in favour of EVs, it didn't look like a death sentence for its auto industry. But now some believe it does. China is geared up to flood the global market with EVs, hybrids and plug-in hybrids. Not to mention conventional ICE products. It is said to have at least a 30% efficiency advantage. 'China speed' has become a cliché in the industry, referring to its ability to design and build state-of-the-art sedans and SUVs about twice as quickly as traditional automakers. 'What we have right now in Europe is regulation that might have been designed to benefit the Chinese carmakers. They are prepared. They are ahead of the Europeans,' said Felipe Munoz, global automotive analyst at JATO Dynamics. 'It needs to change,' Munoz said in an email exchange. 'Politicians are not seeing what's going on in the factories and the market-place. They are not aligned with reality,' he said. Munoz said it's not only the Chinese impact in Europe that is dangerous, it's the impact in regions where European automakers have been very strong and profitable. Here the Chinese are making big progress. The EU has decreed that automakers raise their EV market share in 2025 to 28% and ratchet up to about 80% by 2030 and 100% by 2035. The trouble is auto buyers aren't cooperating. Sales forecasts by consultants and investment banks for 2030 point to about half of the 80%. Investment bank UBS recently slashed almost two million EVs from its sales forecast for Europe in 2030. That now stands at 6.4 million or 37.8%. Other forecasts include BMI, a part of Fitch Solutions, 35%, French automotive consultancy Inovev 40%, and investment researcher Jefferies 35%. And according to a survey published by oil giant Shell, drivers in Europe are becoming more reluctant to switch to electric vehicles from combustion engines. The survey of 15,000 drivers across the world showed that 41% of respondents in Europe would consider switching to an electric car compared with 48% last year. The main negatives were the cost of vehicles, and high prices for public charging. Shell operates 75,000 charging stations in Europe, the U.S. and China. The European Automobile Manufacturers Association said in a statement that it has voiced concerns about how the transition to climate neutrality has not progressed as expected, as the market uptake of battery-electric models has been slower than anticipated. 'However, to stay on course we urgently need a holistic approach to ensure that the industry remains competitive and resilient whilst investing in emission reduction technologies. This includes: Brussels-based Transport & Environment is adamant that no concessions should be made to those seeking to dilute the rules, not only on environmental grounds, but says any mitigation will also make it more difficult for European carmakers to repel the Chinese threat. 'Weakening the 2030 CO2 target or reversing the 2035 decision is also a misguided global industrial policy. It would allow European carmakers to take their foot off the gas and delay investment in mass-market EV models they need to compete globally,' T&E's Julia Poliscanova said. 'The world's politics are certainly bumpy, but electrification is accelerating regardless. If Europe wants battery investment, affordable EV models and a competitive auto industry globally, it starts with standing firm on the 2035 zero-emissions mandate,' Poliscanova said. Poliscanova was rebutting a plea by the German automaker's association, VDA, that wants to weaken the 2035 ICE deadline by exempting plug-in hybrids and low-carbon gasoline. The EU has already weakened the rules for 2025 by allowing manufacturers to average out their CO2 emissions over an extra two years. Last week Stellantis chairman John Elkann called on the EU to change its rules to allow automakers to return to building entry-level small cars, along the lines of Japan's so called 'Kei' cars. As part of the 2035 CO2 emissions agreement manufacturers were given concessions which allowed them to make extremely heavy and profitable SUVs and sedans. But the EU also included regulations virtually outlawing the sale of little gasoline-powered vehicles like the Fiat 500 which became impossibly expensive. JATO's Munoz also wants the regulations widened. 'We need to change the whole approach and consider other ways. By all means keep the goals but allow other solutions as well. So far it's been limited to electric vehicles but anything that lowers CO2 emissions should be welcome. The brand that has made the most progress in Europe in cutting CO2 emissions is Toyota with its hybrids, but it doesn't sell many electric vehicles. You can reduce emissions not only by selling EVs but hybrids too,' Munoz said. The EU Commission will later this year review the whole mandate for 2035, including the possibility of "full technology neutrality" as a core principle. That would mean withdrawing from the notion that politicians could pick winning technologies and generate automaker euphoria and green anger.
Arab News
4 days ago
- Business
- Arab News
IsDB Group partners with Turkiye to drive green industrial growth
JEDDAH: The Islamic Development Bank Group has partnered with Turkiye's Ministry of Industry and Technology to advance sustainable manufacturing and infrastructure as part of a broader push to modernize the country's industrial zones and accelerate its green transition. The initiative supports Turkiye's 2053 net-zero emissions target and aligns with the 12th National Development Plan (2024–28) and the 2030 Industry and Technology Strategy. According to the Saudi Press Agency, the project aims to cluster industrial enterprises within designated zones, reducing environmental impact and promoting climate-conscious development. While Turkiye has committed to peak emissions by 2038 and reach net zero by 2053, independent assessments question the feasibility of this goal. Climate Action Tracker has rated the strategy as 'poor,' citing a lack of ambition and transparency, and warning that the 15-year window to net zero is overly compressed. Still, some subsectors—such as cement, iron and steel, aluminum, and fertilizers—have set clearer reduction targets, although they remain exceptions, CAT notes. Walid Abdelwahab, director of the IsDB Group's regional hub in Turkiye, described the project as 'a vital step in fulfilling the IsDB's commitment to supporting sustainable industrial transformation, enhancing economic resilience, and promoting climate-conscious development.' A multidisciplinary team from IsDB's Jeddah headquarters and Ankara office has been working closely with various government bodies and industrial zone authorities. Discussions have focused on collecting data, identifying challenges, and shaping the project in line with national investment and climate resilience goals. According to SPA, the initiative will also address key areas such as wastewater management, improved water use efficiency, and green infrastructure, laying the groundwork for long-term sustainable industrial growth.
South China Morning Post
10-06-2025
- Business
- South China Morning Post
EU cites US-China rivalry in touting itself as stable ‘just' partner in Latin America
European Union officials used a major security conference in Brazil on Tuesday to present the bloc as a stable and predictable partner, citing growing instability tied to the strategic rivalry between the United States and China. Advertisement Speaking at the Forte de Copacabana International Security Conference, Brian Glynn, the European External Action Service's managing director for the Americas , said the EU was not seeking to distance itself from either power. 'The export-led, fossil fuel-driven economy is the past,' said Glynn, referencing China's growing trade presence in Latin America. 'What we share with Latin America is an agenda for a green, digital and just transition.' Fire and smoke rise from where a Russian missile struck a residential area in Kharkiv, Ukraine, on Saturday. The EU has cited closer ties between the Kremlin and China as a reason for bolstering its ties with the Global South. Photo: AP Of the 'just' component, the senior EU envoy explained: 'We're not here to extract resources. We're here to build, together, a development agenda for this new economy – and to secure our own transition.' Advertisement Over the past year, Brussels has been accelerating its outreach to Latin America and the Caribbean, bearing new pledges of financing and political cooperation aimed at positioning the EU as a long-term, values-based partner.
Forbes
06-06-2025
- Business
- Forbes
SXSW London Debates: Is The Green Transition Financially Viable?
Rhian-Mari Thomas argues that the green transition is financially viable at SXSW London, referencing ... More the record amount of investment in the sector in 2024 Thought leaders across green finance and economics gathered to debate the financial viability of climate progress on day four of SXSW London. Held at the innovation and ideas festival's Climate & Nature House, a space hosted by Bellwethers to have meaningful environmental conversations, the session followed a traditional debate format encouraging a jovial air of competition. Sophie Lambin, founder and CEO of Kite Insights, and Stephen Dunbar-Johnson, president, international at the New York Times Company moderated the conversation. Lambin clarified that the debaters were tasked with addressing whether we can realistically and successfully invest our way to a green future, considering our current economic system and the state of the climate emergency, or whether we need new financial tools and a financial system. Arguing for the notion that 'the green transition is financially viable' were Rhian-Mari Thomas, CEO Green Finance Institute, Marisa Drew, chief sustainability officer, Standard Chartered Bank, and Fiona Howarth, CEO of Octopus Electric Vehicles. Arguing against the notion were Kathy Boughman McLeod, CEO Climate Resilience for All, Chaitanya Kumar, head of economy & environment at New Economics Foundation and Erinch Sahan, business and enterprise lead at Doughnut Economics Action Lab. Each debater was given three minutes to make their case. The debaters prepare their arguments on stage at SXSW London In support of the motion, Thomas started the conversation by saying that the green transition is 'economically strategic, it is socially imperative, and it is already underway.' She highlighted that a record $2.1 trillion was invested in green energy technology in 2024 according to BloombergNEF. Thomas sees this as evidence that the financial markets view green investments as smart economic strategy that not only provides financial opportunity, but protects us from the social and economic damage of the climate crisis. Howarth drew on the enormous success of her employer, Octopus Energy Group, as evidence that current investment is working. Started nine years ago, the company now employs 10,000 people and is valued at $9 billion while making green energy a viable option for consumers. She says this is thanks to 'smart innovators', and 'clever policy mechanisms'. Drew, instead, highlighted that emerging markets such as India, China, Indonesia and Middle Eastern countries have some of the fastest growing economies and are doubling down on green energy transition. 'What is Saudi Arabia doing? It is spending billions, if not trillions, on diversifying its economy. What does that tell you? The energy transition is viable, and the old way is no longer going to be the case in the not-too-distant future,' she argued. The first rebuttal came from Sahan, who highlighted that while $2.1 trillion was invested in green energy last year, the Climate Policy Initiative estimates that $6 trillion per year is needed to fund a green transition. He also argued that financial viability of a movement currently means that it is still satisfying the ROI needs of the financial market. 'These parameters are holding us back,' he said, taking off his belt to use as a symbol that financial markets are placing a straightjacket on businesses and governments to make progress on climate. He then pulled out an apple to make the point that the current green transition focuses on low hanging fruit, undermining the need for larger systemic change that picks the fruit at the top of the tree too. Chaitanya Kumar argued that the current financial system is too heavily influenced by fossil fuel ... More companies to be a fully viable solution to the green transition Kumar's speech made the point that large investment funds have interests in many of the biggest companies in the world as well as oil and gas companies, intrinsically tying them together, and creating strong lobbying power. 'Incumbent power and the political economy of the transition is still very much held by fossil fuel interests around the world,' he said. He drew on examples of the lobbying by fossil fuel companies which saw the EU label natural gas as a 'green energy' in 2022 and Microsoft's pivot on its sustainability strategy to adjust for escalating AI emissions. Finally, McLeod, highlighted the social costs, as well as the environmental costs of the current system. 'The market we have, not necessarily the market we wish to have, incentivizes pollution, devalues people and overlooks protection,' she told the audience. Addressing the plight of informal women workers who are on the frontline of the climate crisis, she said: 'This economy is chaos. We cannot maintain these expectations of return and believe that there is a green future. That is a fantasy.' The debate was declared a tie after the audience were invited to applaud the team they felt debated the best. Summarising the conversation, Dunbar-Johnson emphasised the importance of debate on these issues: 'What you did is encapsulate the complexity of the arguments in these subjects. This is a subject that we must grapple with. If the money is there, do we have the political solutions to drive that? We do have instruments to drive it, but the reality is, too much of the narrative is about the cost of the transition, not about the cost of not transitioning and the opportunities.'
South China Morning Post
23-05-2025
- Business
- South China Morning Post
China's green energy leadership can bridge political, economic divides
Nearly a decade ago on the eve of the G20 summit in Hangzhou, as UN secretary general, I stood alongside then US president Barack Obama and Chinese President Xi Jinping as the two countries took the historic step of joining the Paris Agreement That moment – with the world's two largest economies and biggest emitters – both expedited the ratification of the Paris Agreement and marked the start of an unprecedented era of climate cooperation. It showed shared responsibility in the face of an existential threat. Today, I see a different landscape. As the United States stands back from the global climate stage, China can step up. As the world's largest emitter (absolute, not per capita) and a leader in clean energy manufacturing, China is uniquely positioned to carry forward the momentum of the green transition. This is not only a question of duty: it is in China's interest. Last summer offered a stark reminder of the escalating impact of climate change for China, when extreme weather caused damage amounting to over 230 billion yuan (US$32 billion). Typhoons Bebinca and Yagi killed hundreds in the region, pushed millions from their homes, ripped out the power supply, disrupted supply chains and ruined harvests. It showed that responding decisively to climate change is an act of national resilience. At the same time, tariffs and deepening protectionism fuel division and uncertainty. But the momentum of the green transition can drive progress across political and economic divides. Clean energy and climate-smart investments are not just environmental imperatives. They are economic opportunities. China – already leading the world with its domestic deployment of renewables – has a chance to push the frontier of international investment.
