Vision 2050 – Specific Policy Proposal
What regulatory measures can be devised to stimulate R&D and unlock the investment in low-carbon technologies needed to help deliver the energy transition for mobility in the EU?
The development of disruptive (and not just incremental) technologies to reduce emissions in the EU economy requires huge financial and other resources. This consideration applies to steep GHG emissions reduction in refineries, to other energy-intensive industries and to the electrification of certain transport modes.
The role of the private investor is central, as it cannot be assumed that governments and public funds alone will be able to sustainably support the development of disruptive low-carbon technologies, particularly on a large scale. Private investors will only commit their resources if there is a reasonable expectation of a business case and the prospect of a profitable market.
These two key investment enablers must be brought about through appropriate regulation.
The following analysis describes a proposal for an evolutionary trajectory for regulations on fuels and vehicles.