00:00Our automotive industry is absolutely vital to Europe's industrial strength.
00:17And two months ago in this chamber, we discussed the future of the automotive industry.
00:22And I had committed to backing the sector so that automotive companies will not only survive,
00:28but will thrive on European soil.
00:33And the Commission is convinced that the package of today is going to do exactly that.
00:38So let me set the scene and present our proposals to you.
00:43We're in the midst of a huge transition.
00:46China is aggressively competing in key technologies, including in EV and batteries,
00:51while the U.S. continues to outpace us in productivity and innovation in at least a number of sectors.
00:57And with such fierce competition, the European Union simply needs to step up.
01:04Our strategy is clear.
01:06Decarbonization is one of our best strategies for success.
01:11And we do want to be the leaders of the transition to a low-carbon economy,
01:15because that is what is best for climate, for competitiveness and for independence.
01:19First, we're staying the course towards zero-emissions mobility while introducing some flexibilities for manufacturers
01:31so that they can meet their CO2 targets in the most cost-effective way.
01:35The fleet-wide CO2 emission target for 2035 will require a 90% decrease in emissions,
01:44abiding by the principle of technological neutrality.
01:48And then the remaining 10% of emissions will have to be compensated by either clean steel,
01:55made in the EU, or by sustainable renewable fuels.
01:58And this compensation mechanism and this flexibility, in our view, is the cornerstone of the proposal,
02:07because it drives down emissions and it creates a win-win.
02:12Providing flexibilities, creating a lead market on steel, doing what is helpful for the sector,
02:18and at the same time making sure that our climate goals are rock solid.
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