EUROPEANCOMMISSIONBrussels,10.12.2020COM(2020)798 final2020/0353(C0D)Proposal for aREGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILconcerning batteries and waste batteries,repealing Directive 2006/66/EC and amendingRegulation (EU)No 2019/1020(Text with EEA relevance)(SEC(2020)420 final)-(SWD(2020)334 final-(SWD(2020)335 final)ENENEXPLANATORY MEMORANDUM1.CONTEXT OF THE PROPOSALReasons for and objectives of the proposalBattery development and production are strategic imperatives for Europe in the contextof the clean energy transition.It is also a key component of Europe's automotive sector.In theEU,transport is responsible for roughly a quarter of greenhouse-gas(GHG)emissions and isthe main cause of air pollution in cities.More widespread uptake of electric vehicles will reduce GHG emissions and noxiousemissions from road transport.In the EU,a strong increase in the electrification ofpassenger cars,vans,buses-and,to a lesser extent,trucks-is expected to take place between2020 and 2030.This is mainly being driven by EU legislation setting CO2 emission standardsfor vehicle manufacturers,but also by EU legislation setting Member State minimum targetsfor public procurement of clean vehicles'.The electrification of some residential services,likeenergy storage or heating,will follow on from this and help to further reduce emissions.According to estimates from the World Economic Forum,there is a need to scale up globalbattery production by a factor of 19 to accelerate the transition to a low-carbon economy-.This initiative aims to modernise the EU's legislative framework for batteries.It is an integralpart of the EU's Green Deal,the EU's new growth strategy,which aims to transform the EUinto a modern,resource-efficient and competitive economy where:(i)there are no netemissions of GHGs by 2050;(ii)economic growth is decoupled from resource use;and (iii)no person and no place is left behind.It builds on commitments and reports adopted by theEuropean Commission,including the strategic action plan on batteries",the new circulareconomy action plan',the new industrial strategy for Europe and the sustainable andsmart mobility strategy',which aims at delivering a 90%reduction in transport-related GHGemissions by 2050.In addition to the Commission's work,both the Council and the Parliament have called foraction to support the transition to electro-mobility,carbon-neutral energy storage,and asustainable battery value chain.The European Investment Bank also announced that it expectsto increase its backing of battery-related projects to more than EUR 1 billion of financing in20208This initiative addresses three groups of highly interlinked problems related to batteries.The first group relates to the lack of framework conditions providingincentives to invest in production capacity for sustainable batteries.TheseDirective 2009/33/EC of the European Parliament and of the Council of 23 April 2009 on the promotionofclean and energy-efficient road transport vehicles(OJ L 120,15.5.2009,p.5)World Economic Forum and Global Batteries Alliance,A vision for a sustainable battery value chain in2030:Unlocking the potential to power sustainable development and climate change mitigation,2019.3Communication from the Commission to the European Parliament,the European Council,the Councilthe European Economic and Social Committee and the Committee of the Regions,The European GreenDeal (COM(2019)640 final).4Annex to COM(2018)293 final.COM(2020)98 final.6COM(2020)102 final.C0M(2020)789https://www.eib.org/en/press/all/2020-121-eib-reaffirms-commitment-to-a-european-battery-industry-to-boost-green-recoveryEN1EN