EU carmaker regions clamour for ‘just transition’ aid scheme

(EurActiv, 1 Jul 2022) With the 2035 ban on the production of new combustion engine cars almost set in stone, carmaker regions of the EU have banded together to demand a support mechanism to ease the transition, similar to that implemented for coal regions.

The Just Transition Fund (JTF) supports the territories most affected by the transition towards climate neutrality, mostly coal regions, to avoid regional inequalities. It will provide €20 billion of direct cash until 2027. Now, 20 carmaker districts from seven EU countries, assembled under the banner of the Automotive Region Alliance, are angling for something similar.

“The automotive sector in the EU accounts for over 14 million jobs. The move to zero-emission cars and vans offers opportunities for Europe’s industry, but equally clear challenges,” said EU Commissioner Nicolas Schmit during the plenary of the Committee of the Regions on Thursday (30 June).

Speaking out in support of the carmaker regions, he highlighted the need for “strong accompaniment of reskilling and job-to-job transitions” as well as “adequate funding.”

Cross-border solidarity appears to be the approach of these regions, perhaps as a way to circumvent less pliable national governments.

Regions from Germany, France, Italy, Spain, the Netherlands, Austria and Slovakia banded together to call for a “European mechanism supporting a just, fair and successful transition for the European automotive and supply industry regions” and “dedicated additional budget headings.”

External link

EurActiv, 1 Jul 2022: EU carmaker regions clamour for ‘just transition’ aid scheme