ACEA, the European Automobile Manufacturers' Association, emphasizes the importance of ensuring that a carbon border adjustment mechanism (CBAM) has minimal impact on the competitiveness of European manufacturing. The organization believes that the system should be equitable, predictable, and burdenless, while also achieving its environmental goals. European motor vehicle manufacturers are committed to making mobility climate neutral by 2050, and many have set ambitious targets to achieve net-zero carbon output by the end of the next decade. The industry is already subject to the Emissions Trading System (ETS), and the influence of the ETS on the industry will increase as Phase IV removes free allowances from the system and the value of carbon certificates increases. The industry's global sourcing strategy depends on an economic policy allowing for open and fair trade, and free movement of goods with limited barriers to trade is vital to the success of the EU automobile sector. The CBAM, along with other policy measures, will play a role in decarbonizing fuels.
