Europe's automotive sector, second-largest globally and key to the EU economy, faces urgent challenges: rapid decarbonization, China's EV dominance, and US trade protectionism. The EU’s innovation-driven Action Plan can preserve Europe's leadership if swiftly implemented.

Unprecedented uncertainty highlights the importance of scenario-based analysis for assessing climate risks, especially in the short term. Climate risk scenarios developed by leading institutions can serve as a valuable starting point to illustrate potential economic impacts.