​​​​​​​To successfully navigate the phasing out from combustion engines, and the shift towards digitalisation, members of the Automotive Regions Alliance (ARA) called for an EU-wide "just transition monitoring programme" during a conference held with the European Commission on 22 May. Speaking two weeks before the European elections on 6-9 ​​June, local and regional leaders emphasised the need for a programme that effectively measures the risk, challenges and preparedness in Europe's automotive regions.

The European automotive sector is at the forefront of innovation in the global automotive industry. Production, research and development are driving forces behind the industry, which accounts for 6% of total EU employment and, directly and indirectly, supports the jobs of around 14 million Europeans. The conference, which brought together representatives of the European Commission, automotive regions, industry leaders and expert network organisations, addressed the urgent challenges of the transition in the automotive sector, notably measuring and monitoring the transition phases of different regions involved.

In light of the European Commission's legal obligation to produce a progress report by the end of 2025 on how to ensure a just transition for the automotive regions together with proposals for adequate financial support to address the needs identified, members of the ARA advocated for a comprehensive EU-wide monitoring programme. This programme should aim at identifying funding gaps for the most affected regions and SMEs. Bottom-up examples on how regions are measuring the transition can be then scaled up to an EU-wide monitoring tool, so that regions can be better supported in efforts to make the twin transition embedded in a strong European Cohesion Policy a success.

Participants exchanged regional experiences and good practices in measuring the transition, with notable examples of innovative monitoring frameworks from Thuringia, Baden-Württemberg, and Castilla y León. These examples provided valuable insights into how regions are addressing the transition and highlighted the importance of tailored strategies.

The conference concluded with the following action points with broad support:

•  The importance of continuous collaboration between regions, industry stakeholders, and EU institutions to address the challenges of the automotive transition;
• The need for a robust EU-wide monitoring tool to track progress and identify challenges and gaps in support;
• The critical role of tailored financial measures to address the specific needs of regions and SMEs most affected by the transition and their workforce.

The ARA will continue to work closely with the European Commission, the Automotive Skills Alliance and regional stakeholders to develop and implement effective monitoring and support mechanisms. These efforts will ensure that the transition to zero-emission road transport is equitable and beneficial for all regions involved.

Quotes:

María Chivite (ES/PES), chair of the Automotive Regions Alliance and president of the regional government of Navarra: “I call for institutional commitment for the European Parliament and the Commission to ensure the necessary funding and support needed to achieve the just transformation of the automotive industry. A just transition should be ensured in every region in need through European funds and the cohesion policy. We need incentives for innovation, sustainable mobility, energy transition and decarbonisation, and the promotion of processes of re-industrialisation and re-conversion of industry."

Emil Boc (RO/EPP), chair of the CoR's commission for Territorial Cohesion policy and EU Budget, and mayor of Cluj-Napoca: “The automotive industry is a crucial industry in Europe. It generates over 7% of EU's GDP and around 13.8 million people work in it, creating important multiplier effects in supplier industries. The objective of our seminar is to provide regional strategies to measure the just transition challenge and to consider the potential course of EU intervention in the automotive sector."

Marco Marsilio (IT/ECR), President of the Abruzzo region: "We cannot risk creating a new form of 'transport exclusion' for the most vulnerable citizens who cannot afford electric vehicles. If the new European Commission will not revise the decision on the ban on the production of new combustion engine vehicles as from 2035, automotive regions in the EU will need a massive support mechanism to facilitate the transition, which threatens millions of jobs in the sector, including those in related industries."

Guido Guidesi, Minister for Economic Development of Lombardy: “For the next Annual Assembly of the Automotive Regions Alliance, which will be held in Milan and Monza at the end of November, it is our intention to propose to all 35 regions to share in the document that we will together draw up two concepts that we believe are fundamental for achieving the environmental objectives set by EU and, at the same time, for the social and economic stability of our territories: technological neutrality, and the use of multiple power sources including biofuels."  

More information

The Automotive Regions Alliance is an initiative of the European Committee of the Regions, consisting of 36 participating regions, that recognises the need for decisive action to achieve the EU's climate targets. It aims to bring together regions with a strong automotive sector that want to play an active role in decarbonising the transport sector and contribute to achieving the European Green Deal targets, to ensure a just transition for automotive regions. The region of Navarra holds the chairmanship of the Automotive Regions Alliance, with Lombardy as vice-chair. 

With the adoption of the internal combustion phase-out by 2035, the Alliance has a key role to play: the European Commission is mandated to report by the end of 2025 on what budgetary resources are needed to make this transition fair for all building on the work of the Automotive Regions Alliance.

Dedicated ARA page event that includes the recording of the meeting.

Contact

Theresa Sostmann

Tel: +32 475999415

[email protected]​​