Achieving 2050 Decarbonisation Target of the Automotive Industry in Europe: A Multi-Level Analysis

Abstract

The European Union (EU) aims to reduce overall CO2 emissions at least 80% by 2050. For road transport, this involves at least a 95% reduction target for 2050, compared to 1990 levels. Most commentators argue that achieving this target requires a transition from internal combustion engine vehicles (ICEVs) to battery electric vehicles (BEVs). Nevertheless, this entails substantial changes in the automotive value chain, which will not be motivated by single factors. To support the automotive sector responding the aforementioned target, the factors limiting the new technology in the sector was analyzed and challenged by applying the socio-technical transition theory to the automotive system and examining the existing requirements of critical actors. It was found that a technical change might be possible with an industrial structure favoring the production and consumption of BEVs. However, to achieve that, BEV technologies that are developed in niches by established companies and new entrants need to be further developed and prescriptive policy instruments need to be implemented in a timely manner. Some helpful strategies were also identified and discussed for satisfying the needs of governments, carmakers and small and medium sized enterprises.