Green Mobility Policy Brief — 17 October 2025 — Aviation Reform, Shipping Tensions, and the 2035 Car Debate

Green Mobility Policy Brief — 17 October 2025 — Aviation Reform, Shipping Tensions, and the 2035 Car Debate

 Headlines

  • Airline CEOs urge EU reform on competitiveness and sustainable aviation fuel
  • US-led pressure on shipping deal an attack on EU sovereignty, says T&E
  • EU vehicle emissions review exposes split over carbon-neutral fuels and 2035 targets
  • E-fuel producers call on IMO to strengthen Net Zero Framework
  • Study finds European bike-sharing generates €305 million in annual benefits
  • Industry warns against disruptive zero-emission truck mandates
  • FIA Region I report highlights persistent EV charging gaps across Europe
  • Report warns dependence on used cooking oil limits SAF scalability
  • US revises shipbuilding tariffs and proposes new equipment duties

Airline CEOs urge EU reform on competitiveness and sustainable aviation fuel

European airline CEOs have called on EU leaders to launch a strategic dialogue for aviation, warning that regulatory inertia and rising operational costs are undermining competitiveness and the sector’s ability to decarbonise. In a joint letter coordinated by Airlines for Europe (A4E), the CEOs stress that fragmented airspace management, outdated passenger rules and uneven SAF policies are driving traffic and investment outside Europe.

The letter highlights persistent inefficiencies in air traffic management, with passengers experiencing over 12 million minutes of delay this summer due to limited capacity and strike disruptions. A4E urges EU institutions to mandate arbitration before industrial action, require 21 days’ notice of strikes and guarantee protection for overflights to reduce operational uncertainty. The group also calls for reform of compensation rules, arguing that the current three-hour threshold forces airlines to cancel flights unnecessarily and that a five-hour limit would improve flexibility while maintaining consumer protection.

On sustainability, A4E says the Sustainable Transport Investment Plan must focus on de-risking sustainable aviation fuel production and lowering its price. The organisation proposes a European SAF intermediary to aggregate demand, multi-year SAF allowances, a book-and-claim system and reinvestment of ETS revenues in decarbonisation projects. A4E also calls for a CBAM-style mechanism to ensure parity between EU and non-EU airlines. Without these measures, it warns, the current mandates will raise fares, distort competition and slow progress towards net zero.

The CEOs stress that the European airline sector supports more than 12 million jobs and contributes 4 per cent of EU GDP, yet continues to face rising taxes, capacity bottlenecks and fragmented regulation. They argue that maintaining accessibility and connectivity requires coherent reform linking competitiveness with decarbonisation, not additional regulatory burdens.

US-led pressure on shipping deal an attack on EU sovereignty, says T&E

Transport and Environment has accused the United States, the UAE and Saudi Arabia of attempting to weaken global maritime decarbonisation rules by pressing the EU to abandon its own measures in exchange for a diluted global deal at the International Maritime Organization. The NGO warns that the proposed Net Zero Framework would remove key European safeguards and undermine the bloc’s leadership on shipping emissions.

According to T&E, the US-led group is seeking to block a global agreement that would introduce a modest carbon price for shipping while pressuring Europe to dismantle its ETS and FuelEU Maritime law. The organisation says the draft framework would exempt 85 per cent of Europe’s shipping emissions from carbon pricing and encourage large-scale use of crop-based biofuels associated with deforestation and food insecurity.

T&E argues that the EU must not sacrifice its climate and industrial sovereignty to foreign oil interests. It warns that abandoning the ETS would deprive the EU of €10 billion in annual revenues currently earmarked for green investment, while surrendering control of policy design to the IMO could lock in weaker standards for years.

Executive director William Todts said the negotiations mark a decisive test of Europe’s credibility as a climate leader. “This is a shameless attempt to undermine Europe’s sovereignty,” he said. “EU negotiators must not cave into efforts to dismantle vital climate measures that have been negotiated and adopted at home.”

EU vehicle emissions review exposes split over carbon-neutral fuels and 2035 targets

The European Commission’s consultation on revising CO₂ standards for new cars and vans closed on 10 October, drawing nearly 1,000 submissions and exposing deep divisions over the future of Europe’s light-duty vehicle framework. The outcome will determine whether the EU maintains its 2035 phase-out of combustion engines or integrates carbon-neutral fuels into the compliance regime.

The Federation of German Industries argues that Europe’s automotive sector faces dual challenges from decarbonisation and digitalisation, compounded by weakening EV demand and international competition. It calls for revising the 2035 target to a 90 per cent reduction, lifting the de facto ban on combustion engines and creating new categories for carbon-neutral fuel (CNF) vehicles and advanced plug-in hybrids. CNFs are defined as fuels whose lifecycle emissions are fully offset through renewable production.

Électricité de France takes the opposite view, calling the 2035 target essential for investor confidence and the expansion of Europe’s electrification ecosystem. It argues that weakening the framework would slow infrastructure deployment, increase costs and undermine industrial strategy. EDF supports corporate fleet mandates, social leasing schemes and second-hand market incentives to accelerate EV adoption.

The International Road Transport Union highlights grid and infrastructure constraints as major obstacles to electrification, warning that delays in grid upgrades threaten the viability of commercial operators. It calls for binding EU rules to ensure grid expansion, an enforceable right to plug and recycling of ETS and Eurovignette revenues into road transport decarbonisation. The European Biodiesel Board adds that tailpipe-only accounting excludes biofuels’ proven contributions to emission reduction, calling for the introduction of a carbon correction factor and a CNF-only vehicle category.

Consumer and environmental groups, including BEUC, e-Mobility Europe and T&E, defend the current regulatory framework as the cornerstone of Europe’s industrial and climate strategy. They argue that electrification remains the most effective route to affordability and emissions reduction, warning that attempts to reopen the 2035 agreement would damage investor confidence and delay the transition. BMW supports flexibility through CNF recognition and digital verification but calls for long-term adoption of life-cycle assessment to reflect material and production emissions.

E-fuel producers call on IMO to strengthen Net Zero Framework

Twenty e-fuel producers, including European Energy, Liquid Wind and HIF Global, have called on the International Maritime Organization to adopt the Net Zero Framework with targeted incentives for green fuels. In a joint letter, the group urged delegates to send a clear policy signal for investment in hydrogen-based fuels, arguing that the current draft lacks the ambition needed to drive large-scale decarbonisation.

The producers propose an “e-fuels multiplier” that would allow certified fuels to count multiple times towards compliance obligations, helping early-stage projects reach final investment decisions. They warn that without such incentives, the framework will reinforce dependence on transitional fuels such as LNG and first-generation biofuels.

Transport and Environment’s Alison Shaw said shipping could become a major offtaker for hundreds of projects worldwide but only if the IMO provides a credible regulatory structure. “The current framework leaves e-fuels competing against cheaper, higher-emission alternatives,” she said. The signatories argue that adopting the framework without a clear prioritisation of e-fuels risks stalling the maritime transition before it begins.

Study finds European bike-sharing generates €305 million in annual benefits

A study commissioned by EIT Urban Mobility and Cycling Industries Europe, conducted by EY, has quantified for the first time the economic and social return on investment from bike-sharing systems across Europe. The report estimates €305 million in annual benefits, confirming shared cycling as a key component of sustainable urban mobility.

Bike-sharing now operates in more than 150 cities, from Paris to Brussels and London, with a combined fleet of over 430,000 bicycles. According to the study, shared bikes prevent 46,000 tonnes of CO₂ emissions and 200 tonnes of air pollutants each year while avoiding 1,000 chronic diseases, equivalent to €40 million in healthcare savings. They also ease congestion and support 6,000 full-time jobs across the continent.

EIT Urban Mobility’s Bernadette Bergsma said the study shows that bike-sharing delivers measurable economic and environmental returns, while CIE’s Lauha Fried described it as “an investment that pays back cities and citizens alike.” The report concludes that consistent policy support and stronger integration with public transport could raise benefits to €1 billion a year by 2030.

Industry warns against disruptive zero-emission truck mandates

IRU, CLECAT, the European Shippers’ Council and the Global Cold Chain Alliance have jointly called on the European Commission to avoid introducing mandatory zero-emission truck demand targets. The associations argue that such measures would disrupt the market and place disproportionate burdens on smaller operators.

In a letter to Commission President Ursula von der Leyen, the signatories reaffirm their commitment to decarbonisation but stress that real progress depends on enabling conditions rather than purchase mandates. They note that while zero-emission truck registrations increased in early 2025, charging infrastructure, grid capacity and vehicle affordability remain major constraints.

The associations warn that binding demand targets could distort supply chains and threaten the viability of small and medium-sized operators, which account for 95 per cent of Europe’s 600,000 road transport firms. They call instead for targeted purchase incentives, accelerated investment in charging and refuelling infrastructure and a coherent financing framework that channels ETS and Eurovignette revenues into road transport decarbonisation.

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