Construction and agriculture are vital to Europe’s economy and society, relying heavily on specialized machinery to build infrastructure and produce food. Decarbonising these sectors is crucial to achieving climate goals – but requires a practical, technology-neutral policy approach.
Unlike the automotive sector, construction and agricultural machinery operate in highly variable, often remote environments where electrification is not always viable. A one-size-fits-all solution will not work. The EU must consider a broader range of technologies and assess emissions using a ‘Well to Wheel’ perspective that includes renewable fuels, efficiency improvements and operational optimization.
End-users – professional businesses in farming and construction – are already incentivized to cut emissions, but face challenges with cost, logistics and infrastructure. Manufacturers are providing diverse, market-ready solutions, but progress depends on policies that allow flexibility and innovation.
To enable real impact, the EU should focus on:
- Fair and Predictable Subsidies and Fuel Taxation – Supporting rather than penalizing low-emission alternatives.
- Incentives for Innovation – Encouraging advances beyond energy type alone.
- Investment in Infrastructure and Logistics – Building the ecosystem needed for efficient operations.
- Demand-Driven Decarbonisation via Public Procurement – Stimulating the market for low-emission machinery.
- A technology-neutral framework is key. Policymakers must avoid pre-selecting technologies and instead empower manufacturers and end-users to deploy the best solutions for their specific needs. The industry is already committed – what’s needed now is policy that enables rather than restricts progress.
