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 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.

You can download the statement here.

Joint Press Release CECE and CEMA