The European Commission is exploring ways to support the automotive industry by introducing a unified subsidy program across the EU, aiming to stimulate demand for electric vehicles (EVs). Teresa Ribera, Executive Vice-President of the European Commission, highlighted at the World Economic Forum in Davos that the commission is working on shaping an incentive plan that could provide a pan-European approach. This initiative seeks to harmonize efforts and prevent competition among national models, ensuring a more cohesive strategy for promoting EV adoption.

One of the key challenges for Brussels will be designing a subsidy scheme that adheres to World Trade Organization (WTO) regulations while preventing Chinese carmakers from benefiting disproportionately. Ribera acknowledged the complexity of balancing rapid electrification with the capacity of European manufacturers to meet market demands in terms of both quantity and quality. The commissioner emphasized that the proposed incentive program would be part of broader measures to support an industry critical to Europe’s economy. She also noted the importance of providing clarity and predictability to the automotive sector, particularly regarding the 2035 deadline for ending new sales of internal combustion engine vehicles.

Moving forward, the EU remains committed to its decarbonization goals despite global uncertainties. Ribera stressed the significance of maintaining a united front on climate action, underscoring the importance of collaboration with international partners. The devastating impacts of climate change, such as the fires in Los Angeles, serve as a stark reminder of the urgent need for sustainable solutions. By fostering innovation and supporting local industries, the EU aims to lead the transition towards a greener future, ensuring economic resilience and environmental sustainability for generations to come.