European pension funds have joined asset managers in calling on the European Parliament and EU member states to agree the legislation in the European Commission’s automotive package “quickly and as proposed”.
The Commission presented its automotive package in December. One of its elements is a proposal that introduces significant relaxations to an existing target that would allow only new vehicles with zero grams of CO₂ per kilometre from 2035.
According to media reports, in April the German government agreed to push for further changes in Brussels, with its position influencing negotiations for a compromise within the European Parliament.
The European Parliament co-rapporteur’s draft report on CO₂ standards is due soon, with the Institutional Investors Group on Climate Change (IIGCC) co-ordinating a statement from investor members ahead of this move.
Church of England Pensions Board is one of 16 signatories of the letter, alongside pension funds Akademiker Pension, Pædagogernes Pension, Sampension, the Swiss Association for Responsible Investments, and Velliv.
Aegon, Generation, KBI and Robeco are among the asset managers to have put their name to the letter, in which the investors argue that a timely and credible legislative outcome is essential to provide long-term certainty for capital allocation, support industry planning, and maintain momentum on Europe’s transition to zero-emission transport.
“Consistent policy direction is key to making the net zero transition in Europe investible at scale,” said Sara Taaffe, responsible investment analyst at Church of England Pensions Board.
“As such, we want to see the automotive package agreed quickly without further reducing ambition so we can get on with implementation.”
Harry Ashman, senior engagement specialist at Robeco, said the Commission’s proposals as they stand today “provide a balance between flexibility, clarity and ambition; we support their rapid confirmation and efficient implementation”.
