The transport, mobility and infrastructure industries are at a crossroads in Europe. Faced with the combined challenges of creating a sustainable transport system whilst maintaining competitiveness on an industry level, Original Equipment Manufacturers (OEMs) are caught between regulatory demands that dictate how we invest to produce sustainable solutions, and policies that do not support the journey ahead. Here we will present our view of what needs to be done to achieve a positive outcome for society, business and the wider transport, mobility and infrastructure industry.
The regulatory environment in Europe has been driven by the need to combat climate change in recent years - but at the expense of industrial competitiveness. We see a way forward where industrial policy, business incentives, and a robust climate action work hand-in-hand to build a more competitive Europe, while supporting the transition to zero emission transport solutions.
When Volvo was founded in 1927, society was making the shift from one form of transportation to another: from horse-drawn carriages to motorized transports. But now it's time to make another paradigm shift in how we move the goods. But unlike 100 years ago, this time it's not about switching to a new type of product. It's about a more sustainable way to move forward.
Today, there are more that 6,000,000 heavy-duty trucks on the roads of Europe. Together, they handle around 80% of all road transport. EU regulations for OEMs aimed at accelerating the transition to more sustainable transport have been fully supported by the transport industry. These regulations and the time-frame for implementation have necessitated large investments in developing more sustainable propulsion systems.
As a result, Volvo Group has brought to market a broad range of sustainable transport, mobility and infrastructure solutions and services. We have taken a three-pronged approach to solving the sustainable transport propulsion challenge: battery electric, fuel cell electric and combustion engines running on renewable fuels.
In fact, Volvo Group already has nearly 150 million kilometers worth of experience with zero emission vehicle (ZEV) technologies. We are committed to our 2040 ambition to achieving net-zero emissions in both our operation and in the use of our products. But there is a challenge we still need to face: European policymakers have not been able to keep up with the rate of technological change with respect to the policy updates and the infrastructural investment required to accelerate the transition to a more sustainable future.
Zero Emission Vehicle adoption has been hampered so far due to a number of unsupported enabling factors. The products and services offerings are already on the market. So what is missing?
By 2030 we need 40,000 fast chargers and 400,000 slow chargers across the EU.
This means we need to shorten lead times for infrastructure development and expand the electric grid to ensure sufficient capacity.
Zero Emission Vehicles must be made more affordable and profitable for everyone in the value chain.
Financial instruments supporting adoption and a EuroVignette Directive that offers ZEVs a per km discount will be essential.
Public procurement mandates will help to drive initial demand in our towns and cities.
In addition, setting binding CO2 targets across the value chain that mirror OEM targets will accelerate ZEV adoption.
Volvo Group will continue working with policymakers, our customers, suppliers and competitors, to create a level playing field which enables a speedy and efficient transition to zero emission vehicles on the roads of Europe. Continuous and concerted joint efforts are required to bring this about. As a leader in the transport, mobility and infrastructure industry, Volvo Group is well positioned to support and guide the ongoing work to make this a reality. Together we can reclaim European competitiveness, while taking clear and effective action to combat the effects of climate change.
