Recital (14) · Regulation (EU) 2023/851

(14)The targets in the revised CO₂ performance standards should be accompanied by a Union strategy to address the challenges posed by the scale-up of the manufacturing of zero-emission vehicles and associated technologies, while considering the specificities of each Member State, as well as the need for up- and re-skilling of workers in the sector and the economic diversification and reconversion of activities, while maintaining automotive employment levels in the Union. Particular attention should be given to the impact that this transition will have on micro, small and medium-sized enterprises (SMEs) along the automotive supply chain and to affected regions and communities which might be more vulnerable due to the presence of an intensive automotive industry. Where appropriate, financial support should be considered at Union and Member State level to crowd in private investment, including via the European Social Fund Plus, established by Regulation (EU) 2021/1057 of the European Parliament and of the Council^note, the Just Transition Fund, established by Regulation (EU) 2021/1056 of the European Parliament and of the Council^note, the innovation fund, the European Regional Development Fund, the Cohesion Fund, the Recovery and Resilience Facility and other instruments of the multiannual financial framework set out in Council Regulation (EU, Euratom) 2020/2093^note and the European Union Recovery Instrument, established by Council Regulation (EU) 2020/2094^note, in line with State aid rules and other available financial instruments, such as from the European Investment Bank.The communication of the Commission of 18 February 2022 on Guidelines on State aid for climate, environmental protection and energy 2022 enables Member States to support business to decarbonise their production processes and adopt greener technologies in the context of the communication of the Commission of 5 May 2021 on Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery (the ‘updated New Industrial Strategy’). The Council Recommendation of 16 June 2022^note is an important tool for Member States to address the employment and social aspects of a just transition towards a climate-neutral economy. The Commission should explore further options to support that transition and, specifically, to mitigate any negative employment impacts of that transition in the automotive sector.