#Germany #Berlin #CO₂ Reduction #EU regulation #trailer manufacturers

German Trailer Manufacturers Challenge EU Regulation Affecting CO₂ Goals and Employment

In a significant move, a coalition of eight leading German manufacturers of heavy-duty truck trailers has initiated an appeal against key provisions in the EU regulation 2024/1610, which sets ambitious CO₂ emission reduction targets. This regulation imposes requirements for trailers, despite the fact that trailers themselves do not emit CO₂.

The group argues that while they recognize the importance of climate goals, the implementation of regulations that do not consider real-world factors could inadvertently increase traffic and overall emissions instead of decreasing them. This situation poses a substantial threat to more than 70,000 jobs within the industry.

Background of the Appeal

The collective had previously attempted to annul parts of the regulation through the EU Tribunal, but their appeal was dismissed due to a lack of individual interest. Now, they are bringing their case before the Court of Justice of the European Union, pushing for revisions they believe are necessary to maintain the viability of their businesses and protect jobs.

Technical Concerns with EU Regulation

Starting July 1, 2024, the new regulation mandates a 10% reduction in CO₂ emissions for semi-trailers and 7.5% for other trailers, based on simulations derived from the VECTO-Trailer tool—a model developed by the EU. If manufacturers fail to meet these targets, they would face heavy financial penalties beginning in 2030, which could reach up to €4,250 per vehicle for every gram of CO₂ per ton-kilometer.

The manufacturers warn that such penalties could increase the cost of trailers by up to 40%, making it economically unsustainable for many to operate in this sector. Gero Schulze Isfort, the spokesperson for the manufacturers’ group, noted, "An approach that rewards simulated reductions while increasing the number of trucks on the road is both contradictory and detrimental to genuinely achieving climate targets."

Impact on Efficiency and Employment

Most of the companies involved in the appeal are small to medium-sized enterprises (SMEs). Unlike large corporations, SMEs often lack the financial and technological resources to quickly adapt to new regulatory burdens. As a result, the regulation poses a direct threat to their economic sustainability, potentially jeopardizing thousands of jobs within the supply chain.

Critique of the VECTO-Trailer Model

The manufacturers express particular criticism regarding the VECTO-Trailer model. This tool evaluates theoretical enhancements to trailers, such as lower heights or reduced weights, without accounting for their actual impact on transport operations. In reality, such modifications can lead to decreased loading volume, increased empty trips, and ultimately higher CO₂ emissions.

The modern advancements in trailer design already contribute significantly to transport efficiency, boasting lighter structures, improved aerodynamics, and enhanced wheel management systems. The manufacturers argue that instead of relying on isolated theoretical parameters, regulations should focus on holistic evaluation methods that reflect actual logistical efficiencies.

Seeking Alternative Solutions

To mitigate the potential economic damages, the manufacturers are requesting several amendments to the regulation, including:

• - The removal of the VECTO-Trailer simulation tool
• - A moratorium on penalties until compliance is technically feasible
• - Consideration of zero-emission tractors in CO₂ targets for trailers (ZE Vehicle factor)

The companies in question—like Fliegl Fahrzeugbau GmbH, Kögel Trailer GmbH, and others—account for over 80% of annual registrations in the relevant segments within Germany and more than 70% within Europe. They advocate for the Paris Agreement, affirming their belief that effective climate protection must coexist with economic viability.

Without modifications to the current regulation, the future of over 70,000 jobs hangs in the balance. The repercussions for both the German economy and the broader European manufacturing landscape could be severe. The German Association of the Automotive Industry (VDA) echoes these concerns, warning that unrealistic CO₂ goals could jeopardize the existence of many trailer manufacturers across the continent.

This pivotal legal battle underscores the urgent need for a balanced approach that safeguards both environmental and economic interests within the transportation sector.