Headlines:
- EU budget: Transport sector calls for €100 billion CEF in next MFF
- Cyprus Presidency sets out transport, energy and defence priorities to Parliament
- Clean Corporate Vehicles: T&E urges higher ZEV targets and exclusion of plug-in hybrids
- Mobility startups: EIT Urban Mobility leads European investment ranking as sector funding normalises
- EMSA study finds hull air lubrication technically viable but performance data gap persists
- Industrial Maritime Strategy: Clean Maritime Fuels Platform calls for earmarking national ETS revenues
- Maritime decarbonisation: MARBEM calls for regulatory shift “beyond methane”
- AFIR review: Institutional background note circulated ahead of TRAN discussion
- Committee of the Regions calls for place-based response to transport poverty, rejects cohesion centralisation
- CoR pushes EU tourism strategy centred on resident well-being, housing and demand management
- Road transport: Council backs empowerment of Austria on Switzerland coach cabotage
- Court of Justice upholds Commission jurisdiction in airfreight cartel appeal
- SAF markets: FEG advances certificate finance as report flags HEFA feedstock constraints
- Electric aviation: VÆRIDION partners with Molicel on battery cell qualification for Microliner
EU budget: Transport sector calls for €100 billion CEF in next MFF
More than 40 European transport organisations have called for a significant increase in EU funding for transport under the next Multi-Annual Financial Framework, urging that the future Connecting Europe Facility be allocated at least €100 billion.
In an open letter dated 19 February, signatories including ACEA, ACI Europe, Airlines for Europe, CER, ESPO, IRU, UITP and UNIFE argue that a reinforced EU transport budget is necessary to support industrial competitiveness, supply chain resilience, military mobility and climate adaptation.
The letter links transport infrastructure investment to Europe’s strategic objectives, citing the need to address bottlenecks and missing links in the Trans-European Transport Network and to improve resilience against geopolitical and climate-related disruptions. It references the recently proposed Military Mobility Regulation, stating that existing infrastructure remains insufficiently adapted to dual-use requirements.
The organisations highlight persistent oversubscription of Connecting Europe Facility calls and argue that EU grants are essential to close financing gaps for projects with high European added value but limited commercial returns. They contend that grants act as leverage for private and national co-financing.
The signatories call on Member States and the Commission to ensure that transport funding is safeguarded and increased in the next EU long-term budget, warning that continued underfunding would undermine Europe’s competitiveness, security and cohesion objectives.
Cyprus Presidency sets out transport, energy and defence priorities to Parliament
The Cyprus Presidency presented its programme to parliamentary committees, outlining priorities across transport decarbonisation, energy security, industrial competitiveness and defence readiness for the first half of 2026.
In the Transport Committee, Transport Minister Alexis Vafeades highlighted work on air passenger rights, greener and more efficient transport and dual-use infrastructure. The Presidency referenced the forthcoming EU industrial maritime strategy and a declaration on seafarers. MEPs raised alternative fuels infrastructure, cross-border financing, resilience and the automotive package.
In the Industry, Research and Energy Committee, Energy Minister Michael Damianos pointed to energy interconnections, reducing critical dependencies and simplifying permitting to accelerate industrial and energy projects. The Presidency will work on electricity grids legislation and issues linked to supply chain resilience and strategic autonomy.
In the Security and Defence Committee, Defence Minister Vasilis Palmas prioritised strengthening the European defence industrial base, accelerating defence innovation and investing in maritime security. Critical infrastructure protection and defence supply chain vulnerabilities were raised, alongside continued support for Ukraine.
In the Environment Committee, Maria Panayiotou referenced the revision of CO2 standards for cars and vans and legislative simplification while maintaining environmental ambition.
The Presidency runs until the end of June 2026.
Clean Corporate Vehicles: T&E urges higher ZEV targets and exclusion of plug-in hybrids
Transport & Environment has called for the proposed Clean Corporate Vehicles Regulation to be strengthened, arguing that the Commission’s targets for company car electrification fall short of both climate and industrial objectives.
The Regulation, presented as part of the December 2025 Automotive Package, sets binding targets on Member States for the share of zero- and low-emission vehicles registered by large undertakings in 2030 and 2035. It does not impose direct obligations on companies, but requires national governments to introduce measures to meet the targets. Only large undertakings fall within scope.
Under the Commission proposal, the overall EU target for 2030 would correspond to 69 per cent zero- and low-emission vehicles, with a minimum 45 per cent zero-emission vehicle sub-target. T&E argues that the 45 per cent ZEV share is lower than the Commission’s own “low ambition” scenario in the impact assessment and would not require large fleets to lead the market.
The organisation proposes converting the current ZLEV target into a ZEV-only target of 69 per cent by 2030. It argues that higher ambition would better support carmakers in meeting their CO2 standards and provide a stronger demand signal for EU-based manufacturers. According to its analysis, the Commission proposal would generate 1.2 million additional Made-in-EU electric vehicles by 2030, while a 69 per cent ZEV target could increase that figure to 1.9 million.
T&E also calls for plug-in hybrid electric vehicles to be excluded from the scope. It cites analysis of on-board fuel consumption data indicating that real-world emissions from PHEVs are broadly comparable to conventional hybrids and combustion vehicles, particularly in corporate fleets.
In addition, the organisation supports provisions in Article 4 of the draft Regulation to phase out financial support for fossil fuel company cars and to condition fiscal benefits for electric company cars on EU manufacturing criteria. It points to an estimated €42 billion in annual subsidies for petrol and diesel company cars across five major EU markets.
The position paper argues that stronger fleet targets would increase the flow of used electric vehicles into the second-hand market between 2030 and 2035, with 3.6 million additional EVs compared to a business-as-usual trajectory.
Negotiations on the Clean Corporate Vehicles Regulation are expected to continue in Council and Parliament during 2026.
Mobility startups: EIT Urban Mobility leads European investment ranking as sector funding normalises
EIT Urban Mobility has been recognised for the third consecutive year as Europe’s most active investor in mobility startups, according to the State of European Mobility Startups 2025 report by Dealroom and Via ID.
In 2025, EIT Urban Mobility executed 30 investments, including new and follow-on deals. Its portfolio now spans more than 27 countries, with 27 per cent of portfolio companies founded by women. The organisation positions its model around combining capital deployment with access to pilot projects, strategic partnerships and market entry opportunities through its innovation network.
Follow-on activity included a €7.5 million seed round for Futurail to advance autonomous train technology and more than €20 million raised by R3 Robotics to scale automated battery disassembly operations.
The report shows that venture capital investment in European mobility startups fell to $4.8 billion in 2025, down 27 per cent year on year and marking the fifth consecutive annual decline. Funding has now dropped below pre-COVID levels, and the number of VC rounds has halved since 2022.
However, the report characterises the downturn as a structural normalisation following the 2021–2022 peak. Excluding mega-rounds above $100 million, average deal sizes have increased from $5.7 million in 2020 to $7.4 million in 2025. Corporate participation in funding rounds has doubled compared with pre-COVID levels, reaching nearly 60 per cent, while M&A activity remains stable in volume and reached $3.5 billion in value in 2025.
The data also indicates a thematic shift. Investment in electrification, particularly in materials and battery technologies, has softened, while capital is increasingly directed toward AI and dual-use applications. Europe continues to host leading mobility ecosystems, with London and Paris ranking among the top global hubs, but the region’s share of global mobility funding has declined from over 25 per cent to 18 per cent in two years.
The report concludes that the sector is entering a phase of structural maturity, with increasing reliance on private equity and debt financing and more concentrated capital allocation to later-stage companies.
EMSA study finds hull air lubrication technically viable but performance data gap persists
The European Maritime Safety Agency has published a 149-page study assessing the technological maturity, economic viability, regulatory treatment and safety profile of hull air lubrication systems.
The report, commissioned under framework contract 2024/EMSA/2024/OP/0025 and authored by DNV, concludes that air lubrication systems represent a technically feasible energy-efficiency measure for most of the global fleet but remain constrained by limited full-scale performance data under real service conditions.
Hull air lubrication systems reduce frictional resistance by injecting air beneath the hull to lower drag, thereby reducing propulsion power demand, fuel consumption and associated greenhouse gas emissions. The study identifies active systems, passive systems and air cavity systems, with active variants assessed at technology readiness level 8 to 9, and passive and cavity systems at TRL 5 to 7.
Case studies indicate potential fuel savings of up to 4 percent, depending on vessel type, draft, operational profile and weather conditions. Across a dataset of 9,329 vessels, technically feasible installations could reduce fuel consumption by an estimated 1.1 million tonnes per year, corresponding to approximately 3.5 million tonnes of CO2. Performance is sensitive to draft and sea state, and prediction of two-phase air-water flow remains limited by the lack of reliable full-scale verification data.
By mid-2025, more than 300 vessels were in operation with air lubrication systems, with a similar number on order. Deployment is concentrated in LNG carriers and container ships, with cruise vessels emerging as a third segment. Approximately 99 percent of vessels are considered technically capable of accommodating the systems, although effectiveness varies by ship type and draft profile. Around 1 percent are deemed technically unsuitable.
Economic feasibility is highly dependent on fuel prices, operational area and installation type. For newbuilds, the share of economically feasible projects ranges from 5 to 63 percent depending on fuel price assumptions, compared with 1 to 42 percent for retrofits. Systems are most attractive for vessels with low operating drafts and shaft generators; high-draft vessels such as large tankers and bulk carriers are less suitable.
On regulation, the study finds that air lubrication does not alter fuel type and therefore does not directly affect a vessel’s greenhouse gas fuel intensity under the IMO Net-Zero Framework or FuelEU Maritime. It may, however, reduce compliance costs by lowering fuel consumption and emissions. Under IMO efficiency rules, air lubrication is classified as a Category B-1 technology for EEDI and EEXI purposes, but standardised methods for extrapolating sea trial data to regulatory conditions remain limited.
A structured risk assessment identified no high-risk safety issues. One medium-risk hazard relates to potential interference with aft echo-sounders due to the air layer, which could lead to inaccurate depth readings. The study considers this risk manageable through operational procedures, including deactivation in shallow waters.
EMSA concludes that further long-term in-service measurements and cross-industry collaboration are required to establish robust, verifiable greenhouse gas reduction figures and support wider deployment.
Industrial Maritime Strategy: Clean Maritime Fuels Platform calls for earmarking national ETS revenues
The Clean Maritime Fuels Platform has urged the European Commission to earmark national Emissions Trading System revenues from shipping to support the scale-up of renewable and low-carbon fuels under the forthcoming European Industrial Maritime Strategy.
In a position paper, the Platform argues that access to clean maritime fuels is central to shipping decarbonisation and to Europe’s industrial competitiveness. It notes that shipping carries 76 per cent of the EU’s external trade and cites estimates that the sector will require around €40 billion in annual investment between 2031 and 2050 to decarbonise.
The group states that renewable and low-carbon fuel projects face regulatory complexity, technological risks and high upfront capital requirements, creating uncertainty for both producers and users. It argues that existing EU level instruments, including the EU Hydrogen Bank and the Innovation Fund, are insufficient to address these challenges.
The Platform calls for renewable and low-carbon fuels and innovative maritime technologies to be explicitly included within the scope of the Industrial Maritime Strategy. It further urges the Commission to de risk investments through EU and national ETS revenues, proposing that national ETS revenues from shipping be reinvested in the maritime sector for as long as it remains covered by the EU ETS.
Additional recommendations include strengthening the role of ports as energy hubs and enhancing coherence between the EU ETS and FuelEU Maritime requirements, in line with the Commission’s simplification objectives.
The Clean Maritime Fuels Platform describes itself as an industry initiative seeking to improve coordination between shipping companies and fuel producers in the context of the Fit for 55 framework and the transition to net zero by 2050.
Maritime decarbonisation: MARBEM calls for regulatory shift “beyond methane”
A newly launched initiative, Maritime Beyond Methane (MARBEM), is seeking to reframe the maritime decarbonisation debate around the long term role of methane-based fuels and LNG within global and regional regulatory frameworks.
In an interview published in November, Lukas Leppert, Transport Policy Officer at NABU, and Dr Sian Prior, Lead Advisor to the Clean Arctic Alliance, argue that regulatory uncertainty and fragmented policy have enabled what they describe as “pseudo solutions”, notably methane-based fuels, to gain market share without full accounting of long term climate and economic risks.
MARBEM positions itself as an evidence-based platform aimed at informing regulatory clarity within the International Maritime Organization mid-term measures and regional instruments such as FuelEU Maritime. Its stated priorities include the adoption of measured well to wake LNG emission factors, integration of methane’s short-term warming potential into life cycle assessment guidelines, and the avoidance of incentives that treat LNG as a transitional fuel despite associated climate risks.
The initiative emphasises the need to account for methane leakage, fugitive emissions and broader environmental and health externalities within LCA methodologies. It also calls for economic measures aligned with the polluter pays principle and a just and equitable transition framework.
On technology pathways, MARBEM identifies wind propulsion, electrification and energy efficiency improvements as the most promising zero-emission approaches. It cites analysis indicating that energy efficiency improvements could reduce shipping emissions by up to roughly 40 per cent by 2030 while lowering overall transition costs.
The group argues that short-term market optimisation around LNG risks creating stranded assets, referencing research estimating potential losses of £113 to £185 billion across LNG-capable fleets. It contends that failure to reflect methane’s full climate impact in regulatory accounting could mischaracterise methane-based fuels as low-carbon solutions.
MARBEM maintains that any credible net zero framework should combine three elements: a carbon intensity measure, a science-based global fuel standard, and a greenhouse gas pricing mechanism grounded in well-to-wake life cycle principles.
The intervention comes amid continued discussions at the International Maritime Organisation on the structure and integrity of its net zero framework and the treatment of methane emissions within mid-term measures.
