# Auto lobby urges Spain’s next government to commit to decarbonisation Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-07-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Spain Auto Lobby Urges Government Commitment to Meta Description: ANFAC calls for new Spanish government to fully commit to decarbonisation to meet emission reduction targets for electric vehicle sales. URL: https://financedigest.com/auto-lobby-urges-spains-next-government-to-commit-to-decarbonisationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-07-14t085539z2lynxmpej6b0k0rtroptp4spain-autos-1736813754995-compressed.jpg) ((This July 12 story has been corrected to clarify that the forecast is for all car sales in [Spain,](https://www.financedigest.com/iec-proposed-expansion-into-spain-utilising-ai-lending-technology-rpt.html) not just EV sales, in paragraph 8)) (Reuters) – Spanish auto lobby ANFAC on Wednesday called on the government that will emerge from the July 23 general election to commit to decarbonisation fully, saying electric vehicle (EV) sales had yet to reach the number needed to meet [emission](https://www.financedigest.com/emissions-monitoring-systems-market-poised-to-expand-at-a-robust-pace-over-2017-2025.html) targets. “The industry needs (the new government’s) full support and commitment … to speed up decarbonisation under a mobility model where the clean, connected and sustainable vehicle is considered one more solution to [move towards](https://www.financedigest.com/the-biopesticides-market-to-move-towards-constructive-advancements.html "The Biopesticides Market To Move Towards Constructive Advancements") zero-emission mobility,” Jose Lopez-Tafall, the group’s director-general, said. Spain [fell short of the electrification levels required to meet last](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)") year’s annual emission reduction targets, estimated by ANFAC at 120,000 new EV sales and 45,000 new charging points, he said. Instead, 78,000 EVs were sold and 18,000 charging points installed. 2022 has been one of the worst years in the sector’s recent history,” he said, as Spanish car manufacturers’ net [profit last year](https://www.financedigest.com/taylor-wimpey-expects-full-year-profits-to-halve-amid-housing-gloom.html "Taylor Wimpey expects full-year profits to halve amid housing gloom") dropped by about one third from 2021 to 767 million euros ($845 million). Last year’s semiconductor shortages and higher energy [costs disrupted automakers’ production plans and delayed the market’s](https://www.financedigest.com/complaints-from-cost-centre-to-marketing-discipline.html "Complaints: From Cost-centre to Marketing Discipline") recovery from the pandemic’s impact. Lopez-Tafall said 2023 was crucial to [boosting EV sales](https://www.financedigest.com/jewellery-maker-pandora-bets-on-gen-z-to-boost-sales.html "Jewellery maker Pandora bets on ‘Gen Z’ to boost sales") and turning Spain into an electromobility hub. We will never give up on Spain being the second [largest car](https://www.financedigest.com/adnami-continues-its-european-expansion-by-introducing-new-partnership-with-largest-pan-european-online-car-market-autoscout24.html "Adnami continues its European expansion by introducing new partnership with largest pan-European online car market AutoScout24") producer in Europe and fulfilling its environmental commitments,” he added. However, the lobbying [group expects full-year car sales](https://www.financedigest.com/food-group-danone-raises-2022-outlook-as-third-quarter-sales-beat-expectations.html "Food group Danone raises 2022 outlook as third-quarter sales beat expectations") in 2023 to reach 950,000, far from the national market target of 1.3 million. ($1 = 0.9079 euros) (Reporting by Matteo Allievi; Editing by David Latona and Barbara Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---