VDA Statement regarding EU Climate Target 2040

    VDA Statement regarding EU Climate Target 2040

    VDA President Hildegard Müller regarding EU Climate Target 2040

    Statement

    Berlin, November 04, 2025

    VDA President Hildegard Müller:

    "Ambitious climate goals can only be achieved if climate policy and economic prosperity are pursued together. Decarbonization must be a competitive business model, also internationally. Only if Europe remains internationally competitive and economically strong, the transformation can be a success for the climate, people, the economy, and prosperity. And only then other regions of the world will follow our example and implement similarly ambitious climate policies.

    Against this backdrop, the EU's 2040 climate target should be pursued ambitiously, but economically feasible and socially acceptable. The fact that EU environment ministers were able to agree on an EU climate target for 2040 before the next climate conference in Brazil (COP30) sends an important, but also very ambivalent signal.

    The compromise now reached comes at a high price: Postponing ETS-2 for buildings and transport weakens precisely the key market-based instrument that was intended to enable cost-effective climate protection. Those who adopt such far-reaching climate targets must not simultaneously weaken the central instruments for achieving them. For further CO₂ reduction potential to be realized in Europe, emissions trading must be consistently developed into a genuine leading instrument for the transport and building sectors as well. Instead of a clearly predictable, early CO₂ price signal, the postponement threatens to represent a setback in climate policy.

    It remains impossible to predict whether emissions within the EU can be reduced by 90% by 2040. The planned additional flexibilities for crediting emission reductions in third countries must be designed pragmatically, and progress toward achieving the climate targets must be regularly reviewed so that adjustments can be made if necessary. In addition to the expanded crediting of emission reductions in third countries and the regular review of EU climate targets, it is now more crucial than ever that the targets and the framework conditions necessary for achieving them are considered together. Brussels must do more than simply set or propose ever more ambitious targets—the EU must ensure that these targets can actually be achieved. Regulation alone is not policy.

    In general, to achieve ambitious CO₂ reduction targets, the focus, for example in the transport sector, must be primarily on Europe-wide charging and hydrogen refueling infrastructure. Brussels and the member states must do significantly more to expand this infrastructure, as it is essential for the success of new vehicle types on the road. Consistent monitoring of the expansion is crucial so that adjustments can be made if necessary.

    Furthermore, the contribution that green molecules such as hydrogen, biogenic gases, and renewable fuels can make to achieving climate neutrality must be given greater consideration. Green molecules play a role in many areas, for example, in high-temperature industrial processes, energy storage, heavy-duty transport, and the decarbonization of the existing vehicle fleet through the use of renewable fuels.

    Given the potential for defossilizing the existing vehicle fleet, we therefore need a Renewable Energy Directive (RED) that extends beyond 2030 and establishes a technology-neutral framework until 2050. Particularly for road transport, as with aviation and shipping, ambitious long-term quotas for the use of renewable fuels are necessary.

    Furthermore, access to competitive clean energy is crucial. This requires the unbureaucratic expansion of domestic renewable energy and long-term, diversified energy partnerships. Equally important are raw material partnerships as the foundation for a successful transformation and to truly enable diversification and resilience, especially in the face of increasing geopolitical challenges. Only with an overall internationally competitive location climate goals can be achieved in conjunction with growth, prosperity, and jobs—and thus also with public acceptance."

    Press Office

    Benedikt Herzog-Wolbeck

    Spokesperson with focus on economic policy & trade