European Union Embraces Cycling & NGOs Raise Alarm Over Surge in Chinese EVs Imports: GMPB

Covered in this week's Green Mobility Policy Brief: European Union Embraces Cycling: A Leap Toward Sustainable Mobility; The Surge of Chinese-Made EVs in Europe: Strategic Implications and the Call for Tariffs; Construction Begins on Northvolt Drei: Germany’s Strategic Investment in Sustainable Battery Production; and ￡69 Million Funding Secured for Hydrogen Aviation Research at Cranfield University.

European Union Embraces Cycling: A Leap Toward Sustainable Mobility

In a landmark decision, the European Union has officially adopted its first inter-institutional cycling policy, the European Declaration on Cycling, signalling a pivotal shift toward sustainable and inclusive mobility. This declaration, endorsed by the European Council, Commission, and Parliament, underscores cycling’s integral role in the EU’s transport ecosystem. The Belgian Presidency of the Council of the European Union, during an informal meeting of EU transport ministers, set the stage for this historic signing.

The European Declaration on #Cycling stands as the EU’s most ambitious initiative on cycling to date, articulating eight core principles and 36 commitments. It heralds cycling as a sustainable, accessible, low-cost, and healthy mode of transport and recreation, crucial for European society and economy. Henk Swarttouw , President of the European Cyclists’ Federation (ECF), lauded the declaration as a “monumental milestone” that elevates cycling to par with other transport modes. Jill Warren , CEO of ECF, echoed this sentiment, highlighting the declaration’s potential to unlock myriad benefits for European citizens and marking a significant victory for ECF’s advocacy efforts.

The declaration’s adoption follows a series of high-level political endorsements, including the European Parliament’s Cycling Resolution and the EU Commissioner for Transport Adina V?lean’s announcement at the EU Urban Mobility Days. The collaborative efforts of civil society, the cycling industry, and governmental bodies have been instrumental in achieving this unified cycling policy. The ECF, alongside industry partners Cycling Industries Europe and the Confederation of the European Bicycle Industry - CONEBI , has been pivotal in advocating for this cause.

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The Surge of Chinese-Made EVs in Europe: Strategic Implications and the Call for Tariffs

The European electric vehicle (EV) market is poised to witness a marked increase in the presence of China-manufactured units, with projections indicating that by 2024, one in every four #EVs sold in Europe will originate from China. This forecast, as per analysis by T&E , underscores a burgeoning trend: the Chinese EV industry’s penetration into the European sector is set to expand from the current 19.5% to a substantial 25% in the ensuing year.

This pronounced shift carries significant ramifications for the European Union (EU), which is currently deliberating the imposition of import tariffs to counterbalance the state-backed subsidies that bolster China’s EV industry. T&E asserts that to compete with Chinese brands effectively, European carmakers must not only escalate the production of mass-market electric vehicles but also invest robustly in the regional battery supply chain. According to T&E, tariffs would serve as an additional mechanism to encourage the localisation of EV manufacturing within the European Union.

Julia Poliscanova (she/her) , T&E’s senior director for vehicles and e-mobility supply chains, articulates a dual perspective on tariffs. While acknowledging their strategic role in compelling carmakers to relocate production to Europe—a move that promises job creation and skill retention—she cautions that such measures will not provide indefinite protection for legacy automakers. The potential establishment of Chinese manufacturing plants in Europe necessitates a state of readiness within the EU car industry.

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Construction Begins on Northvolt Drei: Germany’s Strategic Investment in Sustainable Battery Production

On 25 March 2024, the groundbreaking ceremony for the Northvolt Drei battery gigafactory was held, signalling the start of construction of Europe’s latest gigafactory. The event was attended by German Federal Chancellor Olaf Scholz, Vice Chancellor Robert Habeck, Schleswig-Holstein’s Minister-President Daniel Günther, and the Swedish Ambassador to Germany Veronika Wand Danielsson. They were joined by Northvolt executives, including CEO Peter Carlsson and Northvolt Drei CEO Christofer Haux , to commence the industrial operations at the site located outside Heide.

Chancellor Scholz remarked on the strategic value of the Northvolt Germany investment for Germany and the broader European market, highlighting the necessity of domestically produced #battery cells to continue the country’s manufacturing base within the automotive sector.

The gigafactory is planned to leverage locally sourced wind energy, which is in line with Northvolt’s objective to produce batteries with minimal environmental impact. The facility is expected to employ approximately 3,000 people and aim for an annual production capacity of 60 GWh. The first phase of operations is scheduled to begin in 2026.

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￡69 Million Funding Secured for Hydrogen Aviation Research at Cranfield University

Cranfield University has been allocated to lead the establishment of a significant #hydrogen technology hub aimed at demonstrating hydrogen’s viability as a net-zero aviation fuel. The project, named the Cranfield Hydrogen Integration Incubator (CH2i), benefits from a ￡69 million investment, marking the most substantial research funding in the university’s history. This financial package includes ￡23 million from Research England ’s Research Partnership Investment Fund (UKRPIF) and an additional ￡46 million from industry and academic partners.

This initiative addresses the anticipated rise in air travel demand, projecting an increase in UK passenger traffic from 284 million in 2016 to 435 million by 2050, and the potential for aviation to become a leading source of carbon emissions by 2050. The CH2i aims to support the aviation industry’s shift towards hydrogen fuel, aligning with the UK government’s Jet Zero strategy for net-zero emissions in domestic aviation by 2040.

Professor Karen Holford CBE FREng, Chief Executive and Vice-Chancellor of Cranfield University, stated that the investment would utilise Cranfield’s existing capabilities in hydrogen research to assist the #aviation sector’s transition to hydrogen. CH2i will work in conjunction with Cranfield’s aerospace and hydrogen production research units to address key technical challenges related to hydrogen’s aviation applications.

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