The Honorable Alberto Gusmeroli (Lega) today Coreper decided to postpone the vote scheduled for today on stopping the sale of new diesel and petrol cars from 2035, what is the importance of this decision for Italy?
«It is an important first step to change the position of some European countries that do not take into account that the ecological transition must be compatible with social and economic sustainability. We cannot run the risk of damaging our economic activities, losing jobs by favoring Chinese industries with the electric car. Currently, however, only 1.4% of electric cars circulate in the world, the remaining 98.6% are with an internal combustion engine (gasoline and diesel). Let’s imagine the impact on an industrial system almost completely converted, the effects on employment in Italy, but also in many European countries. An energy transition in the automotive sector does not necessarily have to exclude the endothermic engine and in any case programming and timing are necessary, do not give halters that risk strangling entire productive sectors, reasoned and reasonable times are needed».
What role did Italy play in this postponement?
«Certainly fundamental because the intense activity of the Government, in the first place of the Deputy Prime Minister and Minister Matteo Salvini, raised the problem in a clear and decisive way immediately, thanks to the agreement with other European countries starting from Germany. Yesterday, he quarreled with his German counterpart Volker Vissing. A first victory in which Italy and the Government were protagonists».
If this law passes, what would it mean for our automotive industry?
“As I said, changes must be implemented taking into account what already exists. Otherwise, there is no point in talking about sustainability if social sustainability is not put first. The transition to electricity, as presented to us by Brussels, will lead to the loss of at least 600,000 jobs on the continent: companies need time to reconvert their production, and that objectively cannot happen in the short horizon of time over a decade. Abandoning diesel and gasoline would lead to the disappearance of 85% of a car’s current components: from 1,400 for the internal combustion engine to 200 for the electric one. However, this sector alone employs 1.7 million people in Europe, of which more than 150,000 are in Italy. We have entire territories whose economies are based on automotive and related industries: we cannot think of falling on them with an ax. Even for the citizen, the total passage to the electric car runs the risk of being a kind of “patrimonial tax” because today the electric is not an inclusive technology but an elitist one, due to the still high prices of electric cars and lately also to the higher cost. higher used than endothermic (recent study by Sole24Ore). That’s why we need time and research to knead what is currently not kneaded!
Are there alternatives to the electric car that do not produce emissions?
“Undoubtedly, engines running on biofuels and biomethane are a credible alternative, also taking into account the principles of the circular economy in which Italy is a leader in Europe. In recent years, the automotive industry has stood out as one of the sectors that has made important technological investments, studying and implementing innovative solutions in terms of environmental protection. Since the mid-80s of the last century, air pollution and emissions of harmful substances have sharply decreased. Endothermic engines are equipped with particulate filters and scr systems aimed at reducing the CO2 emitted. The use of new synthetic fuels, made from carbon dioxide, which is synthesized by combining it with hydrogen and electricity produced from renewable sources, becomes strategic. The new fuel is “carbon neutral” and can be adapted to any type of internal combustion engine, from gasoline to diesel, passing through gas. Research is key: a sector in which Italy must invest more and provide greater incentives. Of a total of 275,000 employees in the automotive sector, 12% are employed in Research and Development tasks. This number puts us behind our competitors, especially the Asian ones».
Would the electric car be a favor to China?
«The heart of an electric car is the battery, a product in which China (leader for the third consecutive year) has 77% of world production, or 893 GWhs. The Chinese competitive advantage is due to the possession of rare earths, a large part of the production comes from a single mine, Bayan Obo, located in Central Mongolia, which alone produces 32% of world production. In later stages, as the separation of rare earth market share reaches 85% in the. Finally, still other components based on rare earths, such as magnets, are dominated by China at 90%, this is precisely the most requested single use by the production system. Behind are Russia and Brazil. China’s competitive advantage also stems from the country’s limited environmental and social protection. After having seen how risky it is for the future of Europe to have really trusted Russia as the preferred supplier of low-cost gas, with the strong negative impact on prices as happened in the recent geopolitical crisis with the electric car, we would rely on China, owner of production and raw material chains. I would say it is really a favor to China».
In view of the 2024 European elections, can we suggest the hypothesis that, in the event of a victory for the centre-right, this process could be definitively interrupted?
«The issue of ecological transition could certainly be tackled without an ideological approach. The law and the increasing defense of the environment must be reconciled with social and economic sustainability, thus safeguarding our industrial system and the defense of jobs, even in a process of new tasks. The electric car will play its role along with low-emission internal combustion engines».
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
