CLEPA calls on the EU to rethink CO₂ targets to avoid job losses

CLEPA, the association representing Europe’s automotive suppliers, has today publicly called for a thorough reappraisal of the European Union’s (EU) current CO₂ targets. Its message is unequivocal: without a more realistic, technologically neutral approach, the sector could be hit by another wave of redundancies and deindustrialisation.

The request follows the European Parliament’s approval of a targeted amendment to the existing legislation, introducing a new emissions-averaging mechanism designed to help manufacturers meet the objectives set for 2025.

In CLEPA’s view, however, this is only a short-term fix that leaves the underlying issue untouched: a regulation that is “misaligned with market reality” and that “stifles innovation by imposing specific technological solutions”.

Energy transition, yes - but with alternatives

For Benjamin Krieger, CLEPA’s Secretary General, the energy transition cannot rest on a single technological route. “Hybrids, electric vehicles and carbon-neutral fuels must all have a seat at the table,” he said, urging the European Commission to send a clear signal that it is committed to technological neutrality.

CLEPA’s proposal has two strands: to keep the plug-in hybrid “Utility Factor” at 2024 levels - a technical parameter used to calculate these models’ official emissions - and to launch, by the end of the year, a structural review of the CO₂ regulations. According to the organisation, that review should explicitly recognise vehicles powered exclusively by carbon-neutral fuels.

62% of the sector under pressure and the Green Deal at risk

According to the latest CLEPA–McKinsey Pulse Check data, 62% of European suppliers are grappling with overcapacity and high fixed costs. This backdrop increases the risk of plant closures and job losses in a sector that remains essential to delivering the objectives of the European Green Deal.

“Political ambition was bold, but now we must ensure the technical and economic execution is aligned with reality. This is not only about targets; it is about people,” Krieger stressed.

Brussels keeps negotiating, but time is running out

CLEPA notes that the European Commission has promised to deliver a strategy grounded in technological neutrality, yet progress to date has been limited. And, Krieger warns, “time is running out”.

With thousands of jobs at stake, the sector is calling for a clear response that supports competitiveness without slipping into protectionism, while also safeguarding Europe’s strategic industrial base.

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