INFLUENCE OF ENVIRONMENTAL POLICY

INFLUENCE OF ENVIRONMENTAL POLICY ON GREEN STRATEGIES OF EUROPEAN AUTOMOTIVE INDUSTRY.



INFLUENCE OF ENVIRONMENTAL POLICY ON GREEN STRATEGIES OF EUROPEAN AUTOMOTIVE INDUSTRY

Introduction

Europe's industrial sector is diversified and dynamic. There are many key industries within the European economy that forms the basis of its revenues in manufacturing sectors and plays a crucial role in the national and international economy. One such industry is that of Automotives. The automotive industry is one of Europe's key industrial sectors that accounts for almost 8 percent in the total manufacturing value addition. The industry derives its importance from the link that it has established with the national and international economy and its supply chain involving different suppliers, distributors, manufacturers, importers, authorized and non-authorized dealers. It is responsible of employing billions of employees within the European Union and hence plays a key role in the society as well as in the economy.

The vehicle industry of Europe, due to its significant role in the European Union, interacts with several of its policies for transport, energy, the internal market, the trade, the research and development and the environment. While the automotive industry obviously links to the “Europe 2020” strategy for industrial competitiveness, it also upholds the principles laid out by the EU with regard to climate and environment.

The importance of a healthy environment cannot be ignored while states plan for their countries. Environmental stability is an essential precondition for social well being and economic progress. Hence while making policies, special regard and attention is given to the environmental aspects. The Environmental Policy involves practices that ensure environmental concerns are addressed in all policymaking of European sectors including the domestic industries. These policies generally demand some changes in the organizational and procedural activities that ensure a sustainable environment and an improved implementation of environmental planning. This paper intends to explain the green strategies that are followed by the European automotive industry, the salient features of the environmental policy and the influence of the environmental policy on those strategies (Richard, 2001,, 64).

Discussion

The conventional environmental policy that was followed in European Union countries over some time, could not deliver expected results with respect to the environmental sustainability and development. Those policies had not given adequate weight to the environmental concerns and had therefore been unable to prevent the pressures that were exerted on the environment by the society and the industry. It needed to be amended before it could lead the European countries to adverse consequences. Environmental policies were good on appear but until and unless there are religiously followed by each sector within the economy; they can certainly not be effective. In lieu of this situation, a new concept emerged within the EU by the name “Environmental Policy Integration (EPI)”. EPI involved a recurrent process to ensure environmental matters are taken into account in all policy-making, generally demanding modifications and adjustments in political, organizational and procedural activities, so that environmental issues are taken on board as early as ...