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It’s fair to say that 2023 was a remarkable year for the transport sector.

The last vestiges of the COVID-19 pandemic receded – borders reopened, passenger numbers swelled, and travel regained a sense of normality.

The initial shock to supply chains caused by the invasion of Ukraine – particularly felt by the auto and fuel industries – was mitigated.

And the plethora of EU legislation proposed in 2021 to cut emissions from the sector was largely finalised, with new rules passed that will significantly alter the environmental impact of transport in Europe.

For the aviation sector, perhaps the most meaningful piece of legislation to come into force was ReFuelEU. Under the new rules, all flights departing from an EU airport will need to uplift a mandated percentage of green jet fuel which will increase over time.

In the absence of mature, clean technologies, sustainable aviation fuel (SAF) is seen as the industry’s best bet to cut emissions. The challenge in the coming years will be to secure the quantities of SAF required by the law and to ensure that no shortcuts are taken in guaranteeing the sustainability credentials of the green fuels.

A new fuel law was also agreed for the maritime sector, mandating that increasing quantities of low-carbon fuels are to be used to power ships, displacing the heavy crude oil currently deployed.

And an agreement reached to add the maritime sector to the EU’s carbon market – the emission trading system (ETS) – was given final approval this year, a move that will see shippers pay for the carbon they release.

Road transport was also controversially added to the ETS, with a separate carbon market dubbed “ETS 2” set up for vehicles and buildings. ETS 2 will have a lower price than the current carbon market, policymakers assured critics, ensuring those least able to pay are not priced out of driving altogether.

An €87-billion “Social Climate Fund” was also given the green light. Under the fund, revenues from the ETS 2 – which is set to kick in in 2027 – will be routed to the poorest in society (at least that’s the theory on paper, the precise disbursement mechanism varies from country to country).

The most shocking moment for the road transport sector, however, was arguably the last-minute intervention from Germany’s liberal party, the FDP, to save the internal combustion engine.

Despite having agreed to phase out combustion engine vehicles from 2035 in negotiations with the Commission and Parliament, Germany pulled its support for the law shortly before it was due to be finalised, demanding that a non-binding text on the use of e-fuels be made explicit.

In practice, Germany wanted recognition that cars running on synthetic fuels – which are made with green hydrogen and captured carbon – are considered climate neutral, and thus given permission to be sold after the 2035 cut-off date.

The wish was granted, and the law was passed.

However, despite the agreement on paper, the Commission has yet to formally put forward the legal mechanism under which e-fuel cars can be sold (it is understood that bureaucrats are hard at work on it behind the scenes).

Given the expense of e-fuels, it remains likely that only a minority of e-fuel-powered cars will be purchased, primarily in the luxury vehicle market. But it is a symbolic victory for the free-market FDP party, which vowed to ensure Germany’s combustion engine expertise is not discarded.

So what will next year hold for the transport sector? As to be expected in an election year, the legislative calendar is sparser than recent years.

But there are still files to be concluded – Euro 7, a law aimed at tightening road vehicle pollution, will go forward for official approval early next year following an informal agreement, while negotiations between the European Parliament and Council will get underway on new CO2 standards for heavy-duty vehicles.

A tax on kerosene, fiercely opposed by the aviation industry, has also yet to materialise, despite being on the “Fit for 55” docket. To do so would require unanimity from member states, making it a more difficult prospect to achieve in practice – a boon to airlines but a blow to green campaigners, who see it as key to reining in the sector’s carbon footprint.

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New ‘Euro 7’ vehicle pollution rules agreed

The European Parliament and Council struck a deal on updated rules to rein in road vehicle pollution on Monday (18 December), watering down the Commission proposal so that exhaust standards for cars remain in line with Euro 6.

The major difference from Euro 6 is that Euro 7 will, for the first time, tackle emissions released when a vehicle is braking, as well as microplastics released from tyres.

Exhaust limits for trucks and buses will also be tightened.

The final deal is considered a win for conservative lawmakers and the car industry, both of whom expressed concerns that overly strict Euro 7 rules would push up the price of new vehicles for consumers.

The car industry also warned that being forced to re-engineer combustion engines would pull resources from the transition to electric vehicles.

Conservative lawmakers welcomed the deal, with the nationalist ECR group’s Alexandr Vondra, the Parliament lead on the file, calling the agreement “my present for Christmas” on X (formerly Twitter).

However, the socialists and greens, who had called for a strong Euro 7 to reduce the damaging health effects of air pollution, decried it as a wasted opportunity.

Christel Schaldemose, a Danish MEP with the centre-left S&D group, branded it “an extremely poor result, which was only about protecting the shareholders of the car industry”.

The informal agreement will now go forward to be formally adopted by the Council and Parliament before entering into law.

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Council and Parliament strike midnight deal on trans-European transport projects

Euro 7 wasn’t the only piece of legislation on the trilogue agenda last night.

The European Parliament and the Council also reached an agreement on the long-debated trans-European transport network (TEN-T), which lays out the main transport arteries across the bloc, covering roads, railways, and short sea shipping routes.

TEN-T aims to better connect the European Union (and some neighbouring countries), making it easier to transport people and goods, and ensure the smooth transfer of military troops and equipment should a conflict break out.

Under the agreement, major transport infrastructure – known as the core network – should be completed by 2030, with other projects – known as the comprehensive network – given a 2050 deadline. A new intermediary deadline of 2040 was introduced for the so-called “extended core network”.

One of the aims of TEN-T is to boost rail travel by making trains quicker and reducing delays when crossing borders, both for passengers and freight. The new rules stipulate that EU railways will have to migrate to the European standard track gauge and by the end of 2040 switch to a single traffic management system.

Given the geopolitical tensions in Europe, lawmakers decided to cut infrastructure projects with Russia and Belarus, instead boosting links with Moldova and Ukraine.

The European Parliament lead on the file Dominique Riquet, a French lawmaker with the centrist Renew group, said with the new rules the EU is “creating the conditions for a shift towards more ecological transport modes, while stimulating the mobility of Europeans and the competitiveness of our economy”.

However, the centre-right EPP was less impressed, saying that the deal “falls short of our expectations and raises concerns about the real commitment of Member States to create a functioning European transport network”.

“National priorities jeopardise shared European goals, hindering an ambitious vision for rail,” said the EPP’s lead MEP on the file Barbara Thaler. “It goes against the EU’s commitment to shift traffic from road to rail.”

The informal agreement will now need to be given the green light by member states and the European Parliament. A confirmation vote in the Parliament’s transport committee is expected in March, with a plenary vote in April.

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Cars spared from tighter exhaust standards under Euro 7 deal

A deal was reached between the European Parliament and Council on Monday (18 December) on new rules to tighten pollution standards for cars and trucks, with the text primarily focused on reining in pollution from brakes and tyres.

To unions’ dismay, EU Parliament backs new rules on tour bus driver breaks

The European Parliament agreed its stance on new rules defining the minimum rest periods for tour bus drivers on Tuesday (12 December), earning applause from industry and criticism from workers’ groups.

EU is ‘driving without a map’ on biofuels policy, auditors find

The EU’s complex policy approach to biofuels lacks a long-term outlook and risks undermining the bloc’s transport decarbonisation targets, an analysis by the European Court of Auditors has found.

EU should be wary of calls for a ‘regulatory pause’ in the transport sector

Car makers have called for a regulatory pause following a deluge of legislation aimed at ensuring vehicles are in line with Europe’s environmental targets. But agreeing to this would derail climate objectives and hurt consumers, writes Monique Goyens, director general of BEUC.

Polish truckers resume blockade of key Ukraine checkpoint

Polish hauliers on Monday (18 December) resumed their blockade of the largest freight border crossing with Ukraine following a court order that allowed the truckers to go back to the Dorohusk checkpoint.

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