Change in the calculation of the carbon footprint of electric cars in Europe
The European Commission plans to revise the method of calculating the carbon footprint of electric cars, also including the electricity consumed during their manufacturing. This development could pose a significant problem for German car manufacturers.
A worrisome new rule
Several studies have confirmed that over their entire life cycle, electric cars are more environmentally friendly than their thermal counterparts. However, their manufacturing requires more energy, mainly due to the batteries, which involve very energy-intensive extraction and refining of materials. The production of the batteries also consumes a large amount of electricity, which is not always from renewable sources.
The European Union wants to improve this situation and France has already used this argument to limit the advantages of Chinese electric cars, such as the ecological bonus. However, this new measure also worries European manufacturers, who fear new initiatives from Brussels.
Revised carbon footprint calculation
The European Commission wants to make electric cars even greener by revising the calculation of their carbon footprint. Starting in 2027, Brussels will take into account the national energy mix of different countries to determine the carbon footprint of electric vehicles. The goal is to promote greener energy and battery recycling, hoping that they will be mostly produced with clean energy.
Impacts for the German industry
This new measure greatly concerns the German automotive industry, as approximately 40% of electricity production in Germany comes from fossil energy sources such as coal. Batteries manufactured in Germany would be perceived as more polluting, which could lead to fines and tax disadvantages.
The German Automotive Industry Association (VDA) expressed its concerns by stating that the automotive industry has little influence on the national energy mix. The VDA proposes taking into account green electricity purchase agreements and basing the calculation on the European Union’s energy mix rather than on each country individually. Without this, manufacturers might reduce their investments in the electric car sector, which would be counterproductive.
Battery recycling
Despite the concerns, many manufacturers are actively working on battery recycling. Brussels has set material recovery targets at 50% for lithium by 2027 and 80% by 2031. In France, thanks to nuclear power plants and renewable energies like photovoltaic panels and wind turbines, the energy mix is greener than in most other European countries.
This European law could therefore favor French manufacturers such as Renault and the Stellantis group (Peugeot and Citroën), which produce some models in France.
