Towards an eco-rational shift in Europe

Published 24 December 2025

A new debate on the future of the automotive industry has opened following the European Commission’s revision of its new package, a document released after a year of consultations with industry and stakeholders. According to Ennio Cascetta, president of the National Cluster Trasporti, it is a “package with lights and shadows” that paves the way for a more eco-rational approach to decarbonization policies. Among the positives, Cascetta highlights the inclusion of requests that the technology Cluster Trasporti had put forward in recent years to correct the initial Green Deal approach to the energy transition. Specifically, he emphasizes that it is fundamental that the European document “finally includes a recognition of biofuels, biodiesel, and biomethane as green fuels,” sectors where Italy boasts global leadership in terms of know-how and production capacity.

A scientific turning point is represented by the potential shift to calculating emissions “well-to-wheel,” moving beyond the limited approach that only considers tailpipe emissions. Cascetta clarifies that this method is more balanced because it “allows biofuels to recover the so-called carbon credit,” valuing the CO2 absorbed during the production of vegetable fuel. Furthermore, it takes into account how electricity is produced, rewarding countries that are further ahead in renewable energy production, such as Italy, compared to others that still use very high percentages of gas and, above all, coal.

The analysis continues by considering the openness toward internal combustion engines beyond the 2035 deadline, including plug-in vehicles, hybrids, and innovative technologies such as electric motors with “range extenders“. This alternative and complementary type to full electric is of great relevance for the transition because it favors a more gradual and conscious adoption of electric models, “overcoming the fear of limited range”. The president also expresses satisfaction with the flexibility granted to heavy and commercial vehicles, recognizing the technological diversity of this segment compared to private cars. This choice is considered mandatory given the complexity and different market dynamics characterizing freight movement compared to mobility, and in light of recent data on environmental impact: “freight transport and logistics vehicles contribute significantly to CO2 emissions,” accounting for over 30% of the total today, with a growing trend in the percentage of CO2 emitted, particularly by vans due to the increase in e-commerce.

However, Cascetta comments that much remains to be done for full eco-rationality – the achievement of realistic environmental goals with the minimum possible “social cost”. Much will depend primarily on the regulations that will interpret the approved guidelines. From this perspective, Cascetta highlights the urgency of an industrial policy aimed at strengthening the European automotive supply chain, identifying “local content” as a first positive signal that must, however, be accompanied by support for innovation and new technologies, such as digitalization and the development of autonomous driving.

Furthermore, it should be recognized that the market is also made of demand and not just vehicle manufacturers. Setting rigid limits from now to 10 years and beyond means failing to recognize the enormous local and global uncertainty factors that play a very important role in supply and demand, such as wars and the cost of energy and raw materials. These uncertainties and the market should be better addressed with a dynamic monitoring approach of phenomena and the continuous adjustment of incentives and disincentives to move closer to the objectives.