The EU’s vast carmaking sector — its industrial pride — faces a “trilemma” of decarbonization, economic security and competitiveness. That’s according to a new report by the Jacques Delors Institute think tank and Sciences Po university that we got an exclusive look at.

Bring it on: “It is clear that a holistic and coordinated approach is essential to bridge the innovation gap, ensure the long-term competitiveness of the European automotive industry, and address the social challenges of transitioning to EVs,” the authors write.

Coming soon: The paper, penned by Victor do Prado, Elvire Fabry, Arancha González Laya, Nicolas Köhler-Suzuki, Pascal Lamy and Sophia Praetorius, focuses on four policy areas: trade, regulation, industry and infrastructure.

Get the deal: On trade, the experts point to getting trade deals done (quicker) and exploring region-to-region deals like with the Pacific grouping in CPTPP. Making sure other producers also do their bit in greening vehicles should be an essential ask. High-tech countries like Japan and South Korea should be prioritized as battery partners.

Target EV components: To prevent China from circumventing the duties on finished EVs by assembling them here, the European Commission should also target components for tariffs or duties, the writers suggest. But they acknowledge this is no silver bullet: “Higher tariffs increase production costs and carry a risk of circumvention.”

Clear rules with China: The report also suggests to “negotiate specific arrangements with China that link market access commitments to enforceable assurances against the weaponization of battery and critical input supply chains,” to prevent Beijing from using the EU’s reliance against the bloc.

It’s the tech, stupid: In their conclusion, the authors write: “By leveraging its technological leadership, the EU can secure greater market access and drive the global transition towards sustainable mobility.”

Reminder: The Commission is launching its strategic dialogue for the automotive sector on Thursday, the first in a series of meetings chaired by President Ursula von der Leyen.