Decarbonisation

EU GREEN DEAL

In December 2019, the European Commission presented the European Green Deal as a long- term economic and growth strategy for making the EU’s economy a sustainable and toxic-free environment.

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To achieve this goal the climate and environmental challenges will be turned into opportunities across all policy areas via an inclusive transition that leaves no-one behind.

As part of the Green Deal, a range of policies have been adopted to achieve cross-sectoral emissions abatement and offsetting that could allow Europe to become the world’s first climate-neutral continent by 2050.

In this vein, batteries are set to be paramount for the European Union to achieve its decarbonisation objectives. Driven by the Green Deal growth strategy, demand for batteries is set to grow rapidly in the ‎coming years, making the market increasingly strategic at a global level.

FITFOR55

In July 2021, Fitfor55 proposed a raft of new legislation which seeks to strengthen the EU’s climate and environmental policy architecture and establish a ‎coherent framework supporting the revised emissions reduction target of 55% by 2030, compared to 1990 levels.‎

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Key outcomes

for the battery industry

Renewable Energy Directive: Batteries will be fundamental to achieving the emissions reduction target: batteries can store renewable energy and release it when needed and provide fundamental balancing services to stabilise the electricity grid.

CO2 Emissions Performance Standards for Cars and Vans Regulation: new ambitious targets where batteries play a key role in decreasing vehicle emissions at different electrification levels, from start/stop mild hybrid to full electric cars.

Carbon Border Adjustment Mechanism (CBAM): A reduction in the carbon footprint of products is a fundamental objective of the Green Deal. The CBAM can ensure a level playing field internationally. For this reason, we call for a coherent approach to carbon footprint across the CBAM, Sustainable Products Initiative and Batteries Regulation.

Demand for batteries is set to grow rapidly in the coming years driven by the clean energy transition and the need to decarbonise society, and the European battery industry is of increasing strategic importance. As key enablers of decarbonisation across many sectors – including transport, energy, logistics, production and telecommunications, automotive and industrial – batteries have a crucial role to play in the coming years in order to achieve an economy with net-zero greenhouse gas emissions by 2050.