The European Court of Auditors has warned that a ban on the sale of new petrol and diesel cars from 2035 could jeopardize European leadership, due to a lack of competitiveness, especially in battery manufacturing.

In a report released this Monday, the ECA highlights a possible clash between the European Green Deal and the "industrial sovereignty" of the European Union (EU) with the commitment to electric vehicles.

The ECA found that, despite strong public support, batteries manufactured in the EU "continue to cost much more than expected", which affects the competitiveness of European electric cars compared to other global producers, and could also "lead to European electric cars being out of reach for a large part of the population".

Less than 10% of the world's battery manufacturing is based in Europe, the text points out, with the vast majority being produced in China.

The EU battery sector depends on imports of resources from countries outside the EU, with which the bloc does not have the appropriate trade agreements: 87% of raw lithium comes from Australia, 80% of manganese from South Africa and Gabon, 68% of cobalt from the Democratic Republic of Congo and 40% of graphite from China, says the institution.

The ECA also warns that vehicle charging infrastructures still pose many obstacles, both because of the shortage of supply and the lack of a harmonized means of payment.

Faced with the difficulty of reducing greenhouse gas (GHG) emissions in the road sector and the poor development of biofuels, the EU is betting on electric vehicles as the best possible alternative.

Reducing or eliminating CO2 emissions from passenger cars is an essential element of the European climate strategy, which aims to achieve net-zero GHG emissions by 2050, the year in which the EU should reach carbon neutrality.

Zero emissions by 2035

The Brussels proposal is one of the elements of the large legislative package entitled 'Fit for 55', presented in July 2021, which aims to ensure that the European Union meets the target of reducing emissions by 55% by 2030, compared to 1990 levels.

According to the EU executive, "a combination of measures is needed to tackle the increase in road transport emissions to complement emissions trading" and the solution is that, within 14 years, only new electric cars will be sold.

According to the Commission's proposal, average carbon dioxide (CO2) emissions should fall by 55% from 2030 and 100% from 2035, compared to 2021 levels, so "all new cars registered from 2035 should be zero-emission", i.e. vehicles with electric or hydrogen engines.

In order to ensure that drivers can charge or refuel their vehicles on a reliable network across Europe, the revised regulation on alternative fuel infrastructure will require member states to expand charging capacity in line with sales of zero-emission cars.

To this end, member states should install charging and refueling points at regular intervals on the main freeways - every 60 kilometers for electric charging and every 150 kilometers for hydrogen refueling - the EU executive's proposal states.

"Stricter CO2 standards are not only beneficial from the point of view of decarbonization, but will also provide benefits for citizens through greater energy savings and better air quality. At the same time, they provide a clear, long-term signal to guide both the automotive sector's investments in innovative zero-emission technologies and the deployment of recharging and refueling infrastructure," says Brussels.

Still on the transport side, in the aviation sector, the Commission is proposing a new regulation to support a rapid transition from fossil fuels to sustainable fuels in air transport, with a view to making air travel greener, "allowing EU citizens to enjoy the benefits of flying more responsibly".

To this end, Brussels wants to ensure that "increasing levels of sustainable aviation fuels are available at EU airports", requiring all airlines to fill up with such fuel before departure.