Fuel Efficiency Law to Create 400,000 New Jobs in Europe image

A new study shows that if the new European legislation on auto fuel efficiency will be adopted, this could create around 400,000 new jobs and help the bloc cut tens of billions of euro in fuel costs annually.

The European Parliament will set for an initial vote the fuel efficiency proposals tomorrow, March 19th. These proposals have split the industry with Germany pressing for supercredits, which the Commission says would dilute its plans. Analysts’ data shows that more fuel-efficient vehicles would help the bloc save between 57 billion and 79 billion euro ($74.5-$103 billion) in fuel costs annually.

“The results suggest that if a cost-effective transition to fuel-efficient cars can be realized, it will generate jobs across the European auto sector and its supply chain, as well as improving the spending power of European consumers,” said Phil Summerton, the research project coordinator at Cambridge Econometrics.

Increasing production of more efficient conventional engines and hybrid and battery-powered vehicles, would add between 356,000 and 443,000 new jobs by 2030. The Commission aims at creating a low-carbon Europe, which would be less dependent on oil imports, which currently costs around 1 billion euro a day.