The automotive sector can only receive aid if it has a climate neutrality plan for 2050

Laurence Tubiana is considered one of the architects of the Paris agreement (2015) against climate change. President of the European Climate Foundation, economist and diplomat, this expert has joined the chorus of voices calling on the automotive sector to commit to achieving climate neutrality by 2050, that is, achieving a zero emissions balance by that date. It is the contribution they ask car manufacturers to tackle climate change.

Tubiana is a strong supporter of implementing policies to achieve a green recovery. “For Europe to go looking for money in the financial markets collectively is fantastic, very different from what happened in 2008. The European Green New Deal seems historic to me,” he says.

And it advocates that European and national reactivation funds have that purpose. For this reason, it demands that the aid provided for in the European economic reactivation plans include environmental conditions for the automotive sector or air transport, among others, to prevent gas emissions from skyrocketing again when the crisis emerges.

Commitment

In exchange for the aid, the sector says how much it will invest in electrification

“Car manufacturers must assume two conditions to receive this aid. First, they must have a climate neutrality plan for 2050, with a zero emissions balance for that year, and say what they are going to do in the first three years, with particular reference to plans on workers in their transition to another technology. And, secondly, they must say how much they are going to invest in the electrification sector,” says Tubiana by video call.

In terms of air transport, Tubiana believes that gas emissions can be drastically reduced by prohibiting short flights for which there are land alternatives in a reasonable time, with fewer emissions.

“The aeronautical sector must also improve the quality of its fuels. And it cannot be satisfied with buying carbon credits” and continue to increase its CO2 emissions, she adds, disgusted by the recent agreement that frees them from their previous commitments.

Notice

In two years at most, if not in 2021, we’re going to see cars from China super cheap compared to the ones we’re making here.”

He believes that the aid that the automotive sector will receive should not be granted based on the current conventional internal combustion cars produced, but thinking about the clean car, which will define future mobility, he adds.

“You have to keep in mind that the electric car has come a long way in China, to the point that its government believes that it almost no longer needs public aid. In two years at most, if not in 2021, we’re going to see cars from China super cheap compared to the ones we’re making here. We must activate this process because the demand for clean air in cities can no longer be stopped,” he adds.

That is why he believes that the European Parliament will revise upwards the environmental conditions of these agreed recovery plans, to “reinforce the climate quality of the aid, because now the conditionality is very weak,” he observes.

At the same time, he believes that this contribution from the European Parliament will have a positive influence on national governments (in Spain or Italy), pressured by manufacturers.

In France, aid has been established for the conventional car and also for the electric car. “Governments do not dare to make a total shift in private transport policies. This is a battle that is about to begin,” he emphasizes.

“At least it has been achieved, that is, that the governments have not bought the argument of the manufacturing companies, who wanted all the money to go to them without any type of condition,” he consoles.

“It is necessary to put conditions on the aid that is given with public money; because we are talking about debt that, whether or not it is paid in a long time, is going to be a problem for future generations,” he raises his voice.

Therefore, he demands “that this money be allocated to actions that improve our quality of life and future economic development,” even knowing that “it is difficult to make this message heard, in the middle of the crisis.”

“The economic, health and social crisis has made many governments doubt the idea of a green recovery”

Tubiana admits that there is no conducive environment to continue the climate action undertaken in the Paris agreement.

“Geopolitical tension is causing damage to climate action,” he says.

In this sense, the trade battle between the United States and China stands out, or “the insane situation” of Brazil.

“We are facing actors who, clearly, do not see the climate as an important issue in the definition of international politics,” he says.

“To all this is added the problem of the economic, health and social crisis, which has reached a point where it has made many governments doubt the idea of a green recovery” worldwide, says Tubiana.

Lament

“We are facing actors who, clearly, do not see the climate as an important issue in the definition of international politics”

The proposal for a green recovery has had a great echo but clashes (he adds) with China’s desire to want to quickly increase its GDP with investments in the industrial sector and public infrastructure.

For his part, “the United States is a catastrophe,” because “many of the recovery funds have gone to the fossil energy sector.”

“The context of the crisis does not favor, for obvious reasons, a resounding change in economic policies,” he says.

Reasons for hope

What makes him optimistic now is the upcoming U.S. election.

Tubiana highlights the difficulties that the Paris agreement is going through, since the new round of negotiations (to expand climate ambition) is delayed until November 2021 in Glasgow. On the other hand, he praises the firmness of the EC that – “without waiting for anyone” – remains determined to maintain its plan to reduce gas emissions by 55% in 2030 compared to those of 1990.

“What makes you more optimistic now is the upcoming U.S. election. And although everything is uncertain, there are more opportunities”; Democrats have vowed to return to the Paris agreement (from which Trump disassociated himself) if they win the election and will announce new actions to strengthen the pact.

Another positive sign is that public and private capital are becoming increasingly clear about the economic risks posed by fossil fuel investment activities in the short and medium term.

“This, above all, is seen in the coal sector, and it is already beginning to be noticed in the oil sector. It’s something that didn’t happen just 5 years ago.”

He also notes that many economic sectors believe that “the recovery must be green because that will be the bet of the markets in a few years,” he adds.

At the same time, it sees a division between large companies (energy, automotive, steel or cement).

Many already plan to undertake climate protection actions, while until now globally these companies “either did not believe it” or only wielded an apparent formal discourse (of green image washing).

“There is now more social and political discussion, and broader criteria of what climate action should be. Concern about climate change occupies the highest positions on the scales of citizen interests,” he adds.

The international expert also sees positive signs in other “fundamental transformation movements” such as the mobilization in India against pollution (a protest that was even very weak) or the change of course in the EU, with its commitment to a green recovery.

Source: The Vanguard