Headlines:
- Parliament study highlights EV and battery exposure to Chinese overcapacity
- Study finds GHG pricing central to investable global shipping transition
- US trade chief questions WTO relevance after ministerial conference
- EU consumer survey finds affordability and practicality remain key barriers to EV uptake
- German diesel cost surge widens gap with electric trucks
- Commission opens applications for 40,000 DiscoverEU rail travel passes
- UK EV registrations hit record but remain below ZEV mandate trajectory
- Commission clears €6bn Italian hydrogen aid scheme
- Biofuels industry calls for higher biodiesel blends to curb diesel cost exposure
- UK sets out ‘Better Connected’ transport strategy focused on integration, local delivery and data-led planning
Parliament study highlights EV and battery exposure to Chinese overcapacity
A study requested by the European Parliament INTA Committee identifies electric vehicles and battery value chains as a central channel through which Chinese industrial overcapacity is affecting EU manufacturing, with risks concentrated in upstream components rather than vehicle assembly.
The report finds that China accounts for 72% of global electric vehicle production and around 81% of battery cell production, with capacity utilisation rates at approximately 58% for EVs and as low as 31.5% for battery cells. While EV production and demand in Europe remain broadly aligned, global battery capacity significantly exceeds current demand, reflecting slower than anticipated uptake and rigidities in production systems.
In the EU, electric vehicle manufacturing remains relatively resilient. European production broadly tracks domestic sales, supported by localisation dynamics, transport costs and existing industrial ecosystems. Countervailing duties imposed in 2024 have also contributed to moderating import growth, with Chinese EVs not sold at systematically lower prices in the EU market.
By contrast, the battery segment presents a structural vulnerability. European production meets only around 43% of demand, with the remainder largely covered by imports from China. The study highlights China’s dominant position across the battery value chain, including cells and key components, supported by long-term industrial policy, economies of scale and an established innovation ecosystem.
The report notes that Chinese battery producers benefit from both demand side support, including electric vehicle subsidies, and supply side measures such as preferential financing, land access and earlier local content requirements. This has enabled rapid scaling and cost reductions, placing European producers at a competitive disadvantage, with EU-based firms remaining at an early stage of industrial development.
At the same time, the analysis indicates that overcapacity is not translating into systematic dumping in EV markets. Chinese vehicles are often sold at higher prices in Europe than domestically, while battery overcapacity reflects global demand uncertainty as well as technological mismatches between production and evolving vehicle requirements.
The main risk identified for the EU is not immediate displacement in vehicle manufacturing, but increasing technological and supply dependence in batteries. Imports of lithium-ion batteries from China remain significant, while European battery projects have faced delays, cancellations or scaling challenges. The study notes that if local production does not ramp up as planned, reliance on external suppliers could deepen.
EU policy responses, including trade defence instruments, are assessed as limited in addressing these structural dynamics. While measures such as the 2024 countervailing duties on EVs address specific cases, they do not target upstream dependencies or broader capacity imbalances.
The study concludes that policy focus should shift towards industrial scale-up and technological catch-up in batteries, alongside continued monitoring of capacity developments and targeted use of trade instruments where necessary.
Study finds GHG pricing central to investable global shipping transition
A joint study by the UCL Shipping and Oceans Research Group and RMI concludes that greenhouse gas pricing will be critical to enabling a cost effective energy transition in shipping, ahead of negotiations at the International Maritime Organization’s MEPC 84.
The analysis assesses alternative policy architectures under discussion following the postponement of the IMO Net Zero Framework decision in October 2025. It finds that only approaches combining a GHG price, a capped compliance unit market and reward mechanisms for zero and near zero fuels create investable conditions for fleet transition.
The modelling indicates that a technical only framework without GHG pricing would leave compliance unit supply uncapped, increase price volatility and weaken incentives for early adoption of low emission fuels. By contrast, pricing based architectures generate revenues to support early adopters, stabilise fuel markets and reduce transition risks.
The study also finds that regional measures alone, including EU regulation, are unlikely to drive global fleet transition, as most vessels have limited exposure to regional rules. A global IMO measure is therefore identified as central to influencing investment decisions.
Using a fleet evolution model incorporating shipowner behaviour, the analysis shows adoption is likely to follow non linear dynamics. Most operators delay investment until early adopters demonstrate viable pathways, after which uptake accelerates rapidly. This increases the importance of early adopter support and predictable policy signals.
The report also highlights fuel availability as a binding constraint. Even where alternative fuels are cost competitive, limited production capacity and infrastructure could slow uptake. Revenue mechanisms linked to GHG pricing are identified as necessary to stimulate early fuel investment and avoid supply bottlenecks.
The findings compare four candidate architectures, concluding that the Net Zero Framework and levy-based approaches provide the strongest investment signals, while a single-tier fuel intensity measure carries price stability risks. A technical-only measure is assessed as having the highest transition cost and weakest investment incentives.
The study comes as IMO member states prepare to resume negotiations on the global climate framework for shipping, with pricing mechanisms and revenue distribution among the most contested elements.
US trade chief questions WTO relevance after ministerial conference
US Trade Representative Jamieson Greer has criticised the effectiveness of the World Trade Organization following the organisation’s 14th Ministerial Conference, arguing that consensus rules and diverging member interests are preventing meaningful reform.
In an opinion piece published after the meeting in Yaoundé, Greer pointed to limited progress on fisheries subsidies and the failure to agree on a permanent extension of the WTO’s e-commerce tariff moratorium as evidence of institutional paralysis. The US, alongside 24 co-sponsoring countries, proposed replacing the current two-year renewal cycle with a permanent commitment not to impose tariffs on digitally transmitted products.
According to Greer, consensus requirements among all WTO members prevented adoption despite broad support. Delegations, including Brazil and Turkey, opposed longer extensions and insisted on maintaining the existing two-year renewal mechanism, with discussions referred back to Geneva.
Greer also criticised broader WTO dynamics, including the continued use of developing country status to seek exemptions from trade rules, and the dispute settlement system, which he argued constrains responses to unfair trade practices. He said the WTO has struggled to address structural trade imbalances, including those linked to China’s manufacturing dominance.
The intervention signals continued US scepticism towards multilateral institutions and consensus-based trade negotiations. Greer said Washington is prioritising bilateral and regional arrangements, alongside reciprocal trade measures aimed at addressing tariffs, non-tariff barriers and supply chain vulnerabilities.
The position is also likely to carry over into other multilateral negotiations. The United States is expected to play a significant role at the upcoming International Maritime Organization Marine Environment Protection Committee meeting, MEPC 84, where countries are set to negotiate elements of a global climate framework for shipping. US scepticism towards consensus-based rulemaking could influence discussions on market-based measures, fuel standards and implementation timelines.
EU consumer survey finds affordability and practicality remain key barriers to EV uptake
A new consumer survey published by the European Alternative Fuels Observatory finds that most EU drivers are not opposed to battery electric vehicles but remain unconvinced that they fit their practical and financial circumstances.
The 2025 Consumer Monitor, based on more than 3,000 respondents across the EU-27, shows that battery electric vehicles account for only around 14% of next-car purchase preferences, with hybrids continuing to act as a transitional option and internal combustion vehicles still representing a substantial share.
Affordability remains the dominant barrier. Respondents indicate a median willingness to pay of around €20,000 for a BEV, broadly comparable to conventional vehicles, while a significant share would only consider lower price points. High purchase cost is followed by driving range expectations, typically between 400 and 600 km, which may not align with lower-priced models.
The survey also highlights structural disparities in adoption. Plug-in vehicle users are disproportionately higher-income households, more likely to own their homes, have private parking and access to home charging, and more frequently combine EV ownership with other clean energy technologies such as solar panels or heat pumps. Apartment dwellers and drivers reliant on on-street parking are identified as structurally disadvantaged in switching.
Perceived benefits are led by climate performance, followed by driving characteristics. Charging availability concerns have declined compared with earlier surveys, although practical feasibility remains a key determinant of purchase intention.
The report identifies limited awareness of incentives across the EU. Financial support, particularly purchase subsidies, is nevertheless viewed as a strong trigger for adoption, suggesting that improved communication and simplified schemes could accelerate uptake.
German diesel cost surge widens gap with electric trucks
Diesel price volatility is increasing operating costs for European road freight, with the differential between diesel and electric trucks widening materially.
According to Transport & Environment, higher oil prices are adding on average €890 per month to diesel truck fuel costs across Europe. In Germany, the increase exceeds €1,200 per vehicle per month, with pump prices returning to levels last seen during the 2022 energy crisis.
Electric trucks remain comparatively insulated. Monthly energy costs in Germany are estimated to increase by around €460, resulting in an operating cost advantage of approximately €1,760 per month compared to diesel. Across Europe, electric trucks are estimated to be around €280 per month cheaper to run under current conditions.
Fuel costs typically account for around one-third of total operating costs in road freight, leaving diesel operators exposed to sustained price increases. Industry margins, often around 2%, limit the capacity to absorb such shocks.
Trucks represent approximately 2% of vehicles on EU roads but account for nearly 20% of road transport oil consumption, amplifying the sector’s exposure to global energy markets.
Current EU CO₂ standards for heavy-duty vehicles could reduce oil import demand by around one-fifth by 2035 and generate estimated savings of €28 billion. However, recent political pressure to weaken these targets risks delaying electrification and extending dependence on imported fossil fuels.
Commission opens applications for 40,000 DiscoverEU rail travel passes
The European Commission has opened applications for a new round of the DiscoverEU initiative, offering 40,000 free rail travel passes to 18-year-olds across Europe.
The call opened at 12:00 CET and will close on the 22nd of April 2026, with successful applicants able to travel for up to 30 days between the 1st of July 2026 and the 30th of September 2027. Eligible participants must be born between the 1st of July 2007 and the 30th of June 2008.
Applications are open to young people from EU member states and countries associated with the Erasmus+ programme, including Iceland, Liechtenstein, North Macedonia, Norway, Serbia and Türkiye. Passes will be allocated following a ranking based on quiz responses submitted via the European Youth Portal.
Participants will primarily travel by rail, although alternative arrangements are provided for applicants from islands, outermost regions and remote areas. In addition to the travel pass, selected participants will receive a discount card covering transport, accommodation, culture and other services.
The initiative forms part of the Erasmus+ 2021 to 2027 programme. Since its launch in 2018, more than 1.9 million candidates have applied for over 431,000 travel passes.
