GMBP – 12 December 2025 – EU Confirms Automotive Package and Reaches Deal on Vehicle Circularity as SAF, AFIR and Fleet Mandate Disputes Intensify

GMBP – 12 December 2025 – EU Confirms Automotive Package and Reaches Deal on Vehicle Circularity as SAF, AFIR and Fleet Mandate Disputes Intensify

Headlines

  • Commission confirms 16 December adoption of full automotive package
  • EU reaches provisional deal on 90 per cent net emissions cut by 2040
  • Council and Parliament reach provisional deal on vehicle circularity and end-of-life rules
  • Commission launches consultation on ERA mandate revision
  • UITP unveils World Public Transport Day for 2026
  • NGOs urge Commission to safeguard Article 20 flight limitation powers
  • Industry coalition warns corporate fleet ZEV mandates would harm competitiveness
  • Commission proposes streamlined permitting rules for grids, renewables and recharging
  • Activists launch European Rail Passengers Union ahead of 2026 ticketing reform
  • New study finds shipping decarbonisation costs manageable for consumers
  • Platform for Electromobility calls for targeted AFIR revision in 2026
  • IATA warns EU and UK SAF mandates are driving cost escalation and slowing production growth

Commission locks in 16 December for full automotive package, including CO2 standards revision, Greening Corporate Fleets, Automotive Omnibus and Battery Booster Strategy

The Commission has confirmed that the full suite of automotive initiatives will be adopted on 16 December, following publication of the updated College agenda on 9 December. The package comprises the proposal to revise CO2 standards for cars and vans, the Greening Corporate Fleets initiative, the Automotive Omnibus proposal and the Battery Booster Strategy.

The clarification follows a leak of the agenda on 8 December that disclosed the revised timing and the inclusion of all four measures under the Clean Industrial Deal implementation programme. The adoption had originally been expected on 10 December, but negotiations were extended after Germany requested further exemptions during internal discussions on 28 November. These requests centred on the planned changes to the CO2 standards framework, prompting the College to consolidate the automotive files into a single adoption date.

The proposal to revise CO2 standards for cars and vans will set the regulatory direction for vehicle emissions for the remainder of the decade, informing manufacturers’ investment decisions at a time of tightening global competition. The Greening Corporate Fleets proposal will address the decarbonisation of corporate vehicles and is expected to clarify the Commission’s approach following sustained stakeholder concerns about cost pressures and enabling conditions. The Automotive Omnibus proposal will adjust a series of legacy regulatory provisions to reflect recent legislative changes and to streamline existing rules. The Battery Booster Strategy will outline measures intended to reinforce Europe’s battery manufacturing capacity and supply chain resilience, positioning the sector as a central pillar of the Union’s industrial competitiveness.

The agenda notes that the planning remains indicative and subject to Better Regulation requirements, but the 16 December date now represents the College’s consolidated approach to resolving internal negotiations and presenting a coherent automotive package.

EU institutions reach provisional deal on 90 per cent net emissions cut by 2040

The EU has reached a provisional political agreement on a legally binding climate target requiring a 90 per cent reduction in net greenhouse gas emissions by 2040 compared with 1990 levels. The amendment to the EU Climate Law, agreed between Parliament and Council, establishes the central milestone for the post-2030 framework and signals a long-term trajectory towards climate neutrality by 2050.

The agreement allows the use of high-quality international credits for up to five per cent of 1990 emissions, corresponding to a domestic reduction requirement of 85 per cent by 2040. Credits may be used from 2036 and must comply with safeguards aligned with Article 6.4 of the Paris Agreement, with a pilot phase envisaged for 2031 to 2035. The deal also permits the use of permanent removals within the EU Emissions Trading System to compensate residual hard-to-abate emissions.

Negotiators have introduced greater flexibility across sectors and instruments, enabling Member States to address shortfalls in one area without jeopardising the Union’s overall progress. The framework is presented as pragmatic and responsive to current geopolitical and economic conditions, while anchoring the Clean Industrial Deal as a central enabler of delivery.

The co-legislators also strengthened monitoring provisions. A biennial assessment will review progress towards intermediate targets, taking account of scientific evidence, technological developments and the competitiveness of European industry. Future reviews will be required to consider energy price evolution, the state of net removals and the functioning of flexibility mechanisms, including the potential use of international credits after 2030.

A one-year postponement of the application of the separate emissions trading system for buildings, road transport and small industries has been agreed, moving the start of ETS2 from 2027 to 2028. Monitoring, reporting and verification obligations remain unchanged and continue from 2025 as scheduled.

The Commission has welcomed the deal as a clear signal to investors and a reaffirmation of the EU’s commitment to the Paris Agreement. The text now awaits formal adoption by Parliament and Council before publication in the Official Journal.

Council and Parliament reach provisional deal on vehicle circularity and end-of-life rules

The Council and the European Parliament have reached a provisional agreement on a new regulation setting circularity requirements for vehicle design and the management of end-of-life vehicles. The regulation replaces the existing End-of-Life Vehicles Directive and the 3R Type-Approval Directive, establishing a single EU framework covering vehicle design, production, use and end-of-life treatment.

The regulation expands the scope of EU circularity rules beyond passenger cars and light commercial vehicles to include regular heavy-duty vehicles, motorcycles and special purpose vehicles. Small-volume manufacturers of heavy-duty special purpose vehicles are exempted. The agreement introduces binding requirements aimed at improving reuse, recycling and recovery of vehicle components and materials, while ensuring the functioning of the single market.

Mandatory recycled content targets for plastics in new vehicles have been agreed. These require 15 per cent recycled plastic content six years after entry into force and 25 per cent after ten years. At least 20 per cent of the recycled plastic must originate from closed-loop recycling of end-of-life vehicles. The Commission will be required, within one year of entry into force, to assess the feasibility of setting recycled content targets for other materials, including steel, aluminium, magnesium and critical raw materials, with future obligations to be adopted through delegated acts.

The agreement introduces clearer criteria to determine when a vehicle is considered waste, addressing the estimated 3.5 million vehicles that disappear annually from EU roads through illegal export, dismantling or disposal. Once classified as an end-of-life vehicle, a car must be treated by an authorised treatment facility and cannot be exported or resold as a used vehicle. Risk-based documentation requirements will apply to private transfers in situations associated with higher risks of illegal practices, including online-only sales and insurance write-offs.

Extended producer responsibility is strengthened, making manufacturers financially and organisationally responsible for the full vehicle lifecycle, including free take-back and proper end-of-life treatment. A cross-border mechanism ensures that producer obligations apply regardless of the member state in which a vehicle reaches end of life. The regulation also introduces a ban on exporting non-roadworthy vehicles to third countries, which will apply five years after entry into force.

The provisional agreement must now be formally endorsed by the Council and the Parliament. The regulation will apply two years after its entry into force.

Environmental organisations criticised the final compromise, arguing that ambition was diluted during negotiations. The European Environmental Bureau said lawmakers had missed an opportunity to prioritise durability, reuse and repair over recycling alone. “Instead of steering the automotive sector towards fewer, smaller and more repairable vehicles, EU lawmakers chose to weaken key circularity requirements under industry pressure,” said Fynn Hauschke, Senior Policy Officer for Circular Economy and Waste at the EEB.

European Union Agency for Railways: Commission launches call for evidence on mandate revision

The Commission has opened a call for evidence on the forthcoming revision of Regulation 2016/796, which defines the mandate of the European Union Agency for Railways. The consultation runs from 5 December 2025 to 27 February 2026 and invites stakeholders to provide feedback on the effectiveness of the current framework and on options to update the Agency’s role.

According to the consultation document, the proposal will seek to provide a clearer legal basis for the expanded scope of the ERA’s activities, reflecting its evolution since the Regulation entered into force. The Commission intends to strengthen the Agency’s support for rail modernisation and digitalisation, and formalise additional tasks such as safety occurrence reporting and assistance to candidate countries, aligning with the technical acquis.

The initiative also aims to accelerate the removal of national barriers to interoperability, reduce administrative burdens in authorisation and certification processes, and improve transparency by involving the Agency more closely in national safety authorities’ decisions. The Commission notes that any revision will need to ensure adequate human and financial resources for the ERA.

The proposal will draw on the evaluation of the Regulation published on 7 November 2025, which identified gaps in the mandate and areas for simplification. As the Regulation has already been evaluated, no additional impact assessment will be prepared. The call for evidence marks the first formal step in preparing the legislative proposal expected in 2026.

UITP launches World Public Transport Day as part of the UN Decade of Sustainable Transport

UITP has announced the creation of the first World Public Transport Day, to be held on 17 April 2026, positioning the initiative as a flagship contribution to the forthcoming UN Decade of Sustainable Transport. The announcement was made at the United Nations in New York on 10 December, with more than sixty partners already signed up to participate.

The annual event is designed to raise global awareness of the economic and social value of public transport, highlighting its role in connecting cities, supporting labour markets and enabling access to education, culture and essential services. UITP states that the Day will offer a coordinated platform for advocacy, public engagement and local initiatives, supported by a 24-hour global rollout and a central campaign hub. Activities will range from campaign films and community events to conferences and local awareness campaigns.

Partners already include authorities and operators across Europe, Asia, Africa, the Middle East and the Americas, with further commitments expected in the coming months. UITP argues that the Day will help position public transport more firmly within international climate and development debates, particularly by empowering younger generations to adopt sustainable mobility choices.

The initiative draws on the UN General Assembly resolution adopted in 2023, calling for stronger integration of all transport modes to support the Sustainable Development Goals. UITP cites economic data illustrating the sector’s contribution, noting that public transport delivers almost sixty billion passenger journeys per year in Europe and generates substantial wider economic benefits, with each euro invested linked to four euros of value in the broader economy. Employment multipliers are also highlighted, with public transport investment estimated to create a quarter more jobs than equivalent spending on roads.

UITP intends to use World Public Transport Day to strengthen global advocacy for universal access to low-carbon and resilient mobility, arguing that public transport remains central to achieving sustainable, equitable and economically productive cities.

NGOs urge Commission to preserve Article 20 flight limitation powers in upcoming Air Services Regulation revision.

A coalition of fourteen environmental organisations, including Transport and Environment and Greenpeace, has called on the Commission to retain a robust Article 20 in the forthcoming revision of the EU Air Services Regulation. In an open letter to Commissioners Tzitzikostas and Hoekstra, the groups warn that industry lobbying risks narrowing the circumstances in which Member States may temporarily restrict air traffic on environmental grounds.

The NGOs recall that the Commission confirmed France’s short-haul flight limitation in 2022 under Implementing Decision 2022/2358, validating the use of Article 20 to address serious environmental problems. They argue that the provision remains essential for moderating projected emissions growth in aviation during what they describe as a decisive decade for climate action.

Their submission sets out three principal arguments. First, they contend that existing Fit for 55 measures, while central to decarbonisation, are insufficient on their own to align the sector with 2030 and 2050 climate objectives. They cite assessments from the EU’s Scientific Advisory Board emphasising demand reduction and modal shift to rail as necessary components of a credible pathway. Flight limitations, they argue, provide an immediate and effective mitigation tool where other measures cannot deliver short-term reductions.

Second, the coalition frames Article 20 as part of a coherent approach to sustainable connectivity that recognises the relationship between aviation and rail. They point to the EU’s high-speed rail strategy and argue that restrictions should apply where rail offers effective levels of service, allowing public resources and infrastructure to be used more efficiently and supporting the wider objective of shifting demand to cleaner modes.

Third, the groups stress the importance of public expectations and national democratic processes. They reference citizen-led initiatives and parliamentary decisions in France and Spain, and polling indicating strong public support for limiting short-haul flights where viable rail alternatives exist. They warn that additional procedural requirements for Member States would contradict the Commission’s own 2022 guidance, which already sets out clear parameters for compliant national measures.

The letter concludes by urging the Commission to avoid adding administrative burdens that could weaken the instrument, and instead to allow time to assess emerging practice in France and Spain. The coalition argues that Article 20 remains a necessary component of the EU’s mobility and decarbonisation strategy and should be preserved with its current scope.

Sixty organisations warn Commission that mandatory corporate ZEV procurement would weaken competitiveness.

A coalition of sixty organisations, including Taxis4Smart Mobility, BMW Group, Bolt, Enterprise Mobility and Toyota, has urged the Commission to withdraw plans for mandatory zero-emission vehicle procurement for light-duty corporate fleets. In a letter to President von der Leyen and several Executive Vice Presidents, the signatories argue that binding purchase obligations, either at the national or EU level, would impose untenable financial burdens on companies and risk suppressing new vehicle demand at a time of already fragile market conditions.

The coalition represents both vehicle manufacturers and fleet operators across all major sectors of the European economy. It contends that companies are already driving the transition to electric vehicles faster than private consumers, but remain constrained by total cost of ownership pressures, inadequate charging infrastructure and slow grid connection processes. These constraints, they argue, fall squarely within areas where EU and national administrations can remove barriers more effectively than through mandatory procurement rules.

The letter warns that mandatory ZEV quotas would force firms either to retain older internal combustion vehicles for longer or to reduce new purchases altogether, reducing registrations and impairing essential mobility services. The signatories state that such an outcome would undermine European manufacturers and suppliers at a time when competitive pressures from global markets are intensifying.

The group points to the experience of Member States with the highest electric vehicle adoption, noting that sustained incentives, infrastructure investment and supportive demand side measures have delivered progress without recourse to mandates. They argue that stimulating the second-hand market for zero-emission vehicles is critical to addressing oversupply and restoring momentum in new vehicle sales.

The letter urges the Commission to focus regulatory efforts on enabling conditions for fleet electrification, including accelerated charging deployment, improved permitting, adequate grid capacity and measures to strengthen the used ZEV market. The signatories call for the proposal to be reconsidered and for dialogue with Member States and industry to replicate effective national approaches that support both competitiveness and sustainable corporate mobility.

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