The energy instability in the Middle East and increases in fuel prices are boosting the transition to electric cars and renewable technologies.
The global market energyis facing intense turbulence,as geopolitical tensions and fluctuations in oil supply directly affect travel costs and governments’ transport strategy. In this environment of increased uncertainty, the need for faster adoption of clean technologies in road transport is increasingly reinforced, with electromobility and alternative fuels becoming central to Europe’s carbonisation policies.
The current instability in the Middle East and volatility in global energy markets strengthen the argument for accelerating the transition away from fossil fuels in road transport. At the same time, they strengthen the need for a technology-neutral policy regulatory framework that makes zero emission road transport the most attractive and economically viable option for consumers and businesses.
Statement by Sigrid de Vries
Sigrid de Vries, Director General of ACEA, said: “A technology-neutral carbon strategy that incorporates electrification and includes renewable fuels is essential. It is crucial to ensure Europe’s resilience, to protect consumers from price and supply shocks, and to successfully transition to climate-neutral mobility.”
In particular, the current crisis highlights the need for concrete policy action in two areas.
First, policymakers need to send a clear message that electricity must become the most affordable energy source, and back this up with meaningful interventions. This requires reducing the cost of electricity used to charge vehicles. The EU Energy Taxation Directive, as well as national energy taxes and charges, should reflect this. Maintaining affordable and predictable electricity prices is crucial for pushing citizens and businesses towards zero-emission transport options.
Second, this crisis highlights the need to support renewable fuels through incentives. Many of the short-term measures announced to reduce fuel prices do not distinguish between fuels based on their carbon footprint. Instead, these measures could combine consumer relief with CO₂ emission reductions: the higher the proportion of renewable fuel in the blend, the greater the price reduction at the pump.
The current oil crisis is beginning to affect parts of the vehicle market. In some countries, demand for used battery electric vehicles (BEVs) has increased in response to rising fuel prices. However, it is still too early to say with a high degree of certainty that the oil crisis has led to an increase in registrations of new battery electric vehicles. The recent increase in the purchase of new BEVs primarily reflects national tax benefits and incentive programs that were in place prior to the crisis. The latest quarterly data on new vehicle registrations are available here.
Europe’s vehicle manufacturers remain fully committed to carbonisation. ACEA member companies already offer more than 250 decarbonised car models and 50 van models, as well as 50 zero-emission truck models and 25 bus models.
