GMPB — October 16th — ECSA Calls for Larger Shipping ETS Fund as Mobility Leaders Seek Investment

GMPB — October 16th — ECSA Calls for Larger Shipping ETS Fund as Mobility Leaders Seek Investment

Headlines:

  • ECSA calls for tripling proposed maritime ETS support to 330 million allowances
  • SESAR urges continued investment in Europe’s air traffic management
  • Transport MEPs back dedicated high-speed rail funding ahead of plenary vote
  • Commission selects 46 strategic raw materials projects
  • T&E says real-world PHEV emissions remain far above official figures
  • Busworld opens exhibitor list for its 2027 Brussels show
  • Study finds inland shipping’s decarbonisation challenge is the business case
  • EU sets common rules for digital driving licences
  • JRC identifies vehicle families for priority heavy-duty emissions testing
  • Study finds sustainability values do not always translate into holiday offsets
Modern Sovereignty at the Warsaw Security Forum

Dariusz Dybka, a longstanding friend of our publishing house, Ibex Publishing, shares a short video from this year’s Forum, where defence, European security, and transatlantic relations brought together political leaders, business representatives, and experts.

We are pleased to have Dariusz join the conversation as we prepare Modern Sovereignty’s inaugural print issue, and look forward to sharing more of his perspectives in future.

Interested in participating in this inaugural issue? Please contact us as soon as possible to discuss contributions.

The editorial deadline is 11 November, with commercial contributions to be finalised by early December.

ECSA calls for tripling proposed maritime ETS support to 330 million allowances

European shipowners have called for the EU to triple the allowances proposed for shipping’s decarbonisation, arguing that the planned Sustainable Maritime Alternative Propulsion mechanism would be too small to create a market for sustainable fuels and technologies.

In its in-house study, Creating a market for sustainable maritime fuels and technologies, ECSA estimates that SMAP would need at least 330 million allowances between 2028 and 2040. The European Commission has proposed reserving 110 million, which the study says would cover only a third of the modelled requirement and leave a shortfall of about 220 million allowances.

The study estimates that shipping accounts for around 10% of EU ETS emissions but purchases about 90 million allowances each year, equivalent to almost 20% of all allowances auctioned. At an assumed price of €100 per allowance, this would represent an annual cost of approximately €9 billion. From 2026, shipping companies must surrender allowances for all emissions within the system’s scope and receive no free allowances.

SMAP would award allowances to companies using eligible fuels and technologies, rather than provide direct payments. Under the Commission proposal, the allowance value would cover 55% of the remaining price difference for biogas and advanced biofuels, 80% for low-carbon hydrogen and fuels, and 90% for renewable fuels of non-biological origin and the additional cost of technologies. ECSA warns that these support rates could be reduced proportionately if claims exceed the reserve.

The 330 million estimate is based on ECSA’s modelled pathway for fuel and technology uptake and an assumed allowance price of €100. The study identifies uncertainty around future fuel prices and availability, technology costs and the final design of the mechanism. It excludes proposed bonus increases for certain island voyages, feedstocks and technologies fitted in EU shipyards.

SESAR urges continued investment in Europe’s air traffic management

The SESAR Joint Undertaking has called for continued EU investment in air traffic management, arguing that modernisation is necessary to manage rising traffic, improve resilience and maintain Europe’s position in aviation technology.

The call came at SESAR’s annual conference in Brussels, which brought together 450 policymakers, industry leaders and researchers. The European network handled a record 37,659 flights in a single day this summer. SESAR says European technology manages around 70% of global airspace, and that its research partnership has helped European companies test and bring new ATM technologies to market.

At the conference, SESAR handed the European Commission a proposal for Common Project 2, identifying technologies for synchronised deployment across Europe from 2028. The proposal is intended to take research results into operations. SESAR says deployment between 2028 and 2050 could reduce delays and improve flight and operational efficiency.

The Digital European Sky programme has completed its first wave of industrial research, delivering 48 solutions and bringing the total number of solutions ready for implementation to 185. A further 48 exploratory and industrial research projects are under way. SESAR estimates that €66 billion will be needed for aviation research, innovation and market uptake between 2028 and 2034, including €5 billion for ATM. SESAR’s conference statement also points to artificial intelligence and automation as potential tools for improving capacity and reducing aviation’s environmental impact.

Transport MEPs back dedicated high-speed rail funding ahead of plenary vote

The European Parliament’s transport committee has called for dedicated EU funding for high-speed rail in the 2028–2034 budget, as it backs the Commission’s plan to expand the network and close an estimated €345 billion investment gap by 2040.

In its report on connecting Europe through high-speed rail, the committee calls on the Commission and Council to provide adequate funding through the next multiannual financial framework, strengthen the Connecting Europe Facility and use EU funds and European Investment Bank guarantees. It also says ETS revenues should be mobilised for high-speed rail, alongside options including green bonds, blended finance, public-private partnerships and, where appropriate, regulated asset base models.

The report calls for the Commission to set EU deployment objectives by 2027, alongside a 2040 target for shifting transport towards rail. It also urges the EU to prioritise cross-border links and bottlenecks, while connecting high-speed services with conventional, regional and suburban rail.

The committee adopted the report on 5 October, with 34 votes in favour, none against and seven abstentions. Parliament is due to consider it in plenary on 20 October. The report is an own-initiative resolution, so its recommendations are not binding EU law.

Commission selects 46 strategic raw materials projects

The European Commission has selected 46 additional projects in 16 member states for strategic status under the Critical Raw Materials Act, following a second call that received 102 applications.

The projects cover 15 of the Act’s 17 strategic raw materials. They include eight extraction projects, 11 processing projects, 19 recycling projects and eight integrated projects. Seven concern lithium, 12 nickel, 10 cobalt, five manganese and four graphite, materials used in battery supply chains. Other projects cover materials such as magnesium and tungsten for defence and aerospace, and rare earth elements for permanent magnets.

Strategic status can help projects access funding and benefit from accelerated permitting, but does not guarantee that they will secure finance. The Commission expects to open another call in late 2026. The Commission’s announcement sets out the selected projects.

T&E says real-world PHEV emissions remain far above official figures

Plug-in hybrid vehicles registered in 2024 emitted almost six times their official WLTP values in real-world use, according to a new analysis by Transport & Environment. The findings add pressure on policymakers to ensure that planned changes to the way PHEV emissions are calculated reflect how the vehicles are actually driven.

T&E’s analysis of European Environment Agency data found that PHEVs operated in fully electric mode for 27% of kilometres. Their combustion engines also ran during roughly a third of kilometres driven while the vehicles were nominally in charge-depleting mode.

A planned update to the utility factor, which estimates how often a PHEV is driven electrically, would narrow the gap between official and real-world emissions, but T&E says it would not remove it. The report also says freezing the current utility factor would underestimate real-world emissions by 56%. Its analysis found that 24 of 27 member states provide some form of tax preference for PHEVs, while only 12 apply a threshold of 50g of carbon dioxide per kilometre or stricter.

Company fleets accounted for 71% of new PHEV registrations in the first half of 2026, according to T&E. The group argues that tax treatment should better reflect real-world performance. It also found that battery upgrades to some models increased capacity by 68% and electric range by 85%, offsetting 75% of the rise in official emissions associated with the first utility-factor correction. T&E’s report sets out the analysis.

Busworld opens exhibitor list for its 2027 Brussels show

Busworld Europe has opened the exhibitor list and floor plans for its next Brussels show, scheduled for 16–21 October 2027. The organiser says CATL, Asiastar and Pysae are among the newcomers. The 2025 edition attracted 45,427 visitors and 559 exhibitors, according to Busworld.

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