automotive | In Principle

The automotive industry is one of the pillars of the European economy, with a long tradition and a significant contribution to job creation and industrial activity. But the sector is facing difficulties, impacting even leading manufacturers. As the automotive industry is an important part of the energy transition, a question increasingly being asked is whether the industry can count on public financial support in the transition, and if so, what the funds are earmarked for.

The ambitious climate targets adopted by the European Union at the 21st United Nations Climate Change Conference in 2015 (the Paris Agreement) require decisive action across many sectors of the economy. The automotive industry will not be spared, and will soon be subject to a series of new regulations.

According to Eurostat figures for 2021, Poland has become the EU leader in cars registered per 1,000 inhabitants, at 687. At the same time, 37% of cars registered in Poland are 10–20 years old, and more than 41% are over 20 years old. Should Poles fear the adoption of a tax on combustion-engine cars?

Each year, nearly a million used vehicles are exported from Europe, often in very poor condition. They mainly end up in Africa, where they pollute the environment and pose a risk to humans. At the same time, around 3.5 million vehicles a year disappear without a trace from European roads, presumably ending up illegally exported and dismantled. But they could be a source of spare parts and critical raw materials in Europe.

Many citizens of Ukraine are entering Poland by car, raising questions about insurance, the “Green Card,” and other issues. Below are some key clarifications.

 

Beginning this year, contracts for local government units in performance of their public duties must be executed using vehicles powered by electricity or natural gas. And when awarding contracts for purchase of new means of transport, all contracting authorities must allocate at least a portion of the funds to green vehicles. The Electromobility Act specifies the subject matter of such procurements, limits and types of vehicles.

The scope of the insured’s liability (and thus, the insurance companies’ auxiliary liability) is affected not only by national law, but also by EU legislation and case law regarding “use of a motor vehicle.” After a recent Supreme Court resolution, a contradiction between the two has emerged.

Poland’s state-funded My Electricity programme, which provides subsidies for home photovoltaic installations, contributed to the installation of over 220,000 home PV installations in two years. The installation of new PV capacity in Poland has accelerated rapidly, reaching 4.1 GW in March 2021 (up from 557 MW at the end of 2018). A similar increase may soon apply to electric car charging installations, as according to announcements by the Ministry of Climate and Environment, from July 2021 owners of individual chargers will also be able to obtain funding from the programme.

The new emission standard Euro 6D ISC-FCM has been applicable in the European Union since 1 January 2021. It is not only limited to the issue of cleanliness, but also includes an obligation to monitor combustion levels. Gradual reduction of emission limits is included in the consistently implemented EU policy to reduce greenhouse gas emissions.

In recent days, it was widely reported in the media that a well-known manufacturer began testing a system allowing for display of personalised ads in cars. But attentive drivers are not surprised. It is no secret that a modern car is a computer on four wheels, as it processes large amounts of data to ensure safety, transport efficiency, and access to navigation and infotainment services.

Autonomous vehicles will be an essential part of the mobility of the future. Cars can already relieve the driver in many situations, and the R&D sector for autonomous vehicles is booming. Companies are investing in sensor and machine-learning technology, creating pilot programmes to test self-driving vehicles at levels 4 and 5 of automation. But the export of some of these technologies may be restricted due to potential military applications.

Autonomous cars are slowly becoming a reality, accompanied by logistical, technological and legal barriers. The Polish parliament has already made some initial legislative steps by introducing, for example, a definition of an autonomous motor vehicle and a procedure for testing such vehicles on public roads. However, there is a need for further statutory regulation of insurance products and insurance companies tasked with providing compulsory third-party liability protection in a situation of great uncertainty and legal gaps.