EPICO KlimaInnovation is accompanied by a broad-based, independent Advisory Board with high-level members from politics, business, science, and civil society. The Board advises EPICO’s experts on guidelines and the fundamental orientation of the think tank.
With this interview series, we want to introduce the work, expertise, and motivation of each Member of the Advisory Board, as we delve deep into the main questions concerning the future of Europe’s energy transition.
We introduce Hildegard Müller, President of the German Association of the Automotive Industry (VDA) since 2020. She brings a remarkable career background, including her roles as Chief Operating Officer at innogy SE and Chair of the Executive Board at the German Association of Energy and Water Industries (BDEW).
Hildegard, what motivated you to join EPICO’s advisory board?
Throughout my career, I’ve been dedicated to ensuring that discussions on climate and energy policy focus not just on goals, but also on how we, as an industrial powerhouse, can realistically achieve them—working with companies and their innovations, not against them. Unfortunately, this perspective often takes a back seat in political debates, which is why EPICO’s work is so important to me. I was thrilled to have the opportunity to contribute to EPICO’s advisory board. The recent BDI Transformation Pathways Study, which VDA contributed to, highlights this clearly: unless we catch up internationally on key competitive factors like energy costs, infrastructure, workforce, and cutting red tape, achieving climate targets will become ever more distant. EPICO’s expertise is essential in guiding policymakers to create the conditions needed for Germany to successfully transform its industries toward climate neutrality. I’m pleased to continue contributing to this mission.
What will be essential in the next EU legislative period to achieve climate targets while maintaining competitiveness?
In the next EU legislative period, it will be critical to balance ambitious CO₂ reduction goals with preserving our industry’s competitiveness. This includes accelerating the review processes for CO₂ fleet regulations to assess their impact and adjust conditions to support the rapid growth of electric mobility. Current issues like the EU’s lack of unified energy policy and missing links to the AFIR are major obstacles. Without sufficient charging and hydrogen refuelling infrastructure, the rollout of sustainable propulsion systems will be hampered.
To reach climate neutrality in the transport sector, the EU should take a technology-neutral approach, including renewable fuels, especially for existing vehicles. These are crucial for decarbonising the existing fleet, particularly for heavy-duty transport using hydrogen. Electrification alone won’t achieve climate targets in transport, so a clear pathway beyond 2030 is necessary to encourage investment in renewable fuels.
Competitiveness, especially in domestic industry, hinges on electricity prices, which are currently not competitive globally. German companies often pay up to three times more for electricity compared to counterparts in the US or China. Although government relief measures, such as reductions in the EEG surcharge and electricity tax, are steps in the right direction, we need a permanent reduction in the electricity tax to significantly benefit industrial SMEs. The automotive industry would particularly benefit from relief in battery and semiconductor production, such as through electricity price compensation and necessary co-financing of grid charges.
To level the global playing field, I strongly encourage policymakers to focus on establishing energy and raw material partnerships, as well as new free trade agreements. There are many levers to improve Germany’s and Europe’s attractiveness for business, driving investment in transformation. Key areas include reducing bureaucracy, tax relief, securing skilled labour, and reducing labour costs.
How prepared is the European automotive industry for the electric mobility revolution?
I’d reframe that question—it's not about how prepared we are; we’re already deeply engaged in a successful transformation. From 2024 to 2028, German automakers and suppliers are investing around €280 billion globally in research and development. These investments are focused on transformation, especially in electric mobility and battery technology, but also in autonomous driving and digitalisation.
Our high export rate highlights an important point: although domestic demand for electric vehicles is unfortunately declining, domestic production is increasing by about four percent compared to last year. This shows that the automotive industry continues to deliver, but market conditions ultimately determine where our electric vehicles are sold. I’d say our innovative automotive industry is well-equipped for the challenges ahead. The real challenge lies in the current crisis of Germany and Europe as industrial locations. For companies to continue producing in Germany and Europe, driving growth, prosperity, and employment, the measures I’ve outlined above are essential.
At EPICO, we are actively addressing key energy transition challenges. We believe that climate and energy policy driven by competition and innovation is essential to efficiently reducing CO2 and other greenhouse gases, while also balancing environmental protection, sustainable economic growth, and socially just equitable outcomes. Discover our latest publications, and upcoming events, and stay tuned for more Advisory Board interviews.