Construction and Agricultural Machinery:
Key to Europe’s Decarbonisation Pathway
Brussels, 3 June 2025 – Construction and agriculture are vital to Europe's economy and society, relying heavily on specialised 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 optimisation.
End-users – professional businesses in farming and construction – are already incentivised 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.
You can download the statement here.
