Headlines:
- IEA urges immediate demand cuts as Hormuz disruption removes major oil flows
- Commission opens AFIR review, signals possible recalibration of targets and user requirements
- IRU urges EU transport ministers to act on fuel price surge and market distortions
- T&E says EU three years behind China on EV uptake, warns against weakening CO₂ standards
- Commission registers ECI proposing aviation fuel tax and EU rail funding mechanism
- Spain launches up to €1.78bn high-speed train tender to expand capacity and renew fleet
- UK reviews HS2 specification as programme reset exposes cost and delivery gaps
- EU road deaths fall 3% in 2025, but most Member States off 2030 target
- IOGP Europe warns against early CO₂ market regulation ahead of Commission proposal
- UK to issue guidance on street design for women’s safety, backed by active travel funding
- Wattlab moves to scale solar deck systems for bulk carriers after sea trials
IEA urges immediate demand cuts as Hormuz disruption removes major oil flows
The International Energy Agency has set out a package of immediate demand-side measures to reduce pressure on oil markets following what it describes as the largest supply disruption in the history of the global oil market.
In a report published on the 20th of March, the IEA said flows through the Strait of Hormuz, which normally account for around 20 million barrels per day or roughly one fifth of global oil consumption, have been reduced to a “trickle”, tightening supply and pushing crude prices above $100 per barrel, with sharper increases in diesel, jet fuel and LPG.
IEA member countries agreed on the 11th of March to release 400 million barrels from emergency reserves, the largest coordinated stock draw to date. The agency said this would help stabilise markets but would not fully offset the scale of the disruption, making demand reduction an immediate priority.
The report identifies ten measures that can be implemented rapidly across transport, aviation and industry, with a primary focus on road transport, which accounts for around 45% of global oil demand.
In road transport, the IEA highlights reduced speed limits of at least 10 km/h, increased remote working, modal shift to public transport, car sharing and more efficient freight and delivery operations as measures capable of delivering immediate fuel savings. It also points to traffic restriction schemes in urban areas to limit private vehicle use.
In aviation, the agency identifies reduced air travel where alternatives exist as a direct lever to ease pressure on jet fuel markets. In parallel, it recommends prioritising LPG use for essential applications such as cooking, including shifting transport use of LPG to other fuels where possible.
Industrial measures include switching petrochemical feedstocks away from LPG and implementing short-term efficiency and maintenance actions to reduce oil consumption.
The IEA said these measures are based on established crisis responses and can be deployed quickly by governments, businesses and households. It added that coordinated action would be required to maximise impact.
The agency stressed that demand-side measures cannot match the scale of lost supply but can reduce price pressures, preserve fuel availability for essential uses and limit economic impacts while disruptions persist.
Commission opens AFIR review, signals possible recalibration of targets and user requirements
The European Commission has launched a call for evidence to support the review of the Alternative Fuels Infrastructure Regulation, indicating that deployment targets, user provisions and reporting obligations may be revised ahead of a legislative proposal expected in the fourth quarter of 2026.
The review is required under Article 24 of Regulation (EU) 2023/1804, which has applied since April 2024. It will assess whether current targets and provisions remain appropriate to ensure “sufficient and user friendly” infrastructure across the EU, in light of evolving market uptake and technological developments.
The Commission pointed to early monitoring data suggesting uneven deployment across member states, with particular scrutiny on recharging infrastructure for heavy duty vehicles. It also flagged persistent issues linked to user experience, notably price transparency at publicly accessible charging points.
The review will examine whether existing target levels for road transport infrastructure should be adjusted, including for publicly accessible charging points for light-duty vehicles and both charging and hydrogen refuelling infrastructure for heavy-duty vehicles. Consideration will also be given to the extent to which infrastructure requirements adequately reflect recent developments in vehicle deployment.
Beyond road transport, the Commission will assess the need to update provisions for alternative fuels infrastructure in ports and airports, including alignment with FuelEU Maritime and ReFuelEU Aviation obligations. This includes evaluating infrastructure readiness for emerging fuel pathways and ensuring compliance with technical specifications to guarantee interoperability.
A further strand of the review will focus on enforcement and data. The Commission is considering measures to strengthen compliance with mandated standards, including potential certification schemes and improved access to real time data on recharging and refuelling points.
Simplification is also identified as a priority. The review will assess whether national planning, reporting and assessment requirements under AFIR can be streamlined, in line with broader efforts to reduce administrative burdens.
The initiative is framed as central to enabling the uptake of zero and low emission vehicles, vessels and aircraft, and to ensuring cross border connectivity along the Trans European Transport Network, including urban nodes. The Commission underlined that a coordinated EU approach remains necessary to avoid gaps in infrastructure deployment in lower demand markets and to ensure interoperability across member states.
The review will be supported by an impact assessment comparing policy options against a baseline scenario in which the current framework remains unchanged. Options are expected to range from targeted adjustments to more ambitious measures to accelerate infrastructure rollout and improve user conditions.
A 12-week public consultation will be launched in the second quarter of 2026, alongside targeted stakeholder interviews and an external study. The Commission noted that a full evaluation of AFIR is not yet possible due to limited implementation data, but said available evidence will be used to inform the review.
IRU urges EU transport ministers to act on fuel price surge and market distortions
The International Road Transport Union has called on EU transport ministers to convene urgently to address rising fuel prices and emerging market distortions affecting the road transport sector.
In a letter to the Cypriot Council Presidency, the organisation warned that fuel prices have increased by 30 to 35% across the EU, placing acute pressure on operators. It highlighted that fuel accounts for around one third of operating costs, while margins in the sector typically range between 1% and 3%.
The group said the impact is compounded by delayed fuel adjustment mechanisms in contracts and regulated pricing in some segments, including taxi and public transport services, limiting the ability of operators to pass on cost increases.
It also pointed to operational disruptions, including supply imbalances, restricted access to fuel and cross-border effects such as “tank tourism”, where operators refuel in lower-cost jurisdictions, exacerbating local shortages.
IRU called for coordinated EU-level action to avoid fragmentation of the internal market and ensure continuity of supply chains. It urged ministers to provide sector-specific input to a forthcoming Commission “toolbox” on energy measures, warning that horizontal approaches may not reflect transport-specific constraints.
Proposals include the development of a transport contingency plan, coordination on fuel prioritisation in case of shortages and more aligned fiscal responses across member states, including excise and VAT measures.
The organisation also called for adjustments to state aid rules, including a temporary increase in de minimis thresholds to €600,000, and the possible suspension of certain charges linked to road use.
It further urged stronger coordination on the use of strategic oil reserves to ensure the availability of refined products, including diesel, along key transport corridors.
The intervention comes amid broader EU discussions on energy market volatility, with the road transport sector warning of risks to supply chain continuity and passenger mobility in the absence of targeted measures.
T&E says EU three years behind China on EV uptake, warns against weakening CO₂ standards
The EU is around three years behind China on electric vehicle uptake but could close the gap before 2030 if current policy ambition is maintained, according to Transport & Environment’s annual State of European Transport report.
The analysis finds that while the EU and China were aligned on EV sales share in 2020, weaker European car CO₂ standards after 2022 allowed China to pull ahead. Stronger targets introduced in 2025 have since narrowed the gap.
T&E argues that maintaining current regulatory trajectories would allow Europe to recover competitiveness in electric vehicles while reducing oil dependence. Around 8 million electric cars in the EU avoided an estimated 46 million barrels of oil consumption in 2025.
The report links EV deployment directly to energy security, estimating that Europe’s oil import bill could reach €300 billion in 2026, including an €80 billion “crisis premium” linked to elevated prices.
It also highlights diverging trends across Member States. Countries with higher EV penetration, including Denmark and the Netherlands, are seeing reductions in transport emissions, while slower uptake in others, including Spain, is offsetting overall progress.
T&E rejects industry calls to weaken CO₂ standards for cars, arguing that existing regulation is a key driver of investment and competitiveness. It states that seven in ten electric vehicles sold in Europe are produced domestically, and that continued policy support is required to sustain industrial capacity.
The report comes amid broader concerns over Europe’s position in global clean technology supply chains, with China accounting for around 60% of global EV production and significantly higher battery manufacturing capacity.
Commission registers ECI proposing aviation fuel tax and EU rail funding mechanism
The European Commission has registered a European Citizens’ Initiative calling for EU legislation to introduce an aviation fuel tax, remove VAT exemptions for air transport and allocate revenues to a European rail structure.
The initiative, submitted on the 5th of February 2026, requests measures to make rail “a true alternative to aviation”, including the creation of a continental network and a European rail organisation with coordinating authority .
The organisers propose the introduction of an EU-wide kerosene excise duty, the removal of VAT exemptions for aviation and the allocation of resulting revenues to a European rail entity.
In an implementing decision adopted on the 25th of March, the Commission found that the initiative meets the admissibility criteria and falls within its powers to propose legislation under Articles 113 and 91 TFEU.
Organisers now have six months to open the signature-collection phase, followed by a 12-month period to gather at least 1,000,000 signatures across at least 7 Member States. If those thresholds are met, the Commission will be required to respond and indicate whether it intends to take action.
carbon management agenda.
Spain launches up to €1.78bn high-speed train tender to expand capacity and renew fleet
Spain’s Ministry of Transport and Sustainable Mobility has approved a tender for up to 40 next-generation high-speed trains, marking the largest rolling stock procurement in Renfe’s history.
The initial contract covers 30 units valued at €1.362 billion, with an option to expand the order to 40 trains, bringing the total potential value to €1.777 billion.
The procurement is aimed at accommodating expected demand growth, supporting further expansion of the high-speed network and replacing ageing rolling stock across the fleet.
The trains will be designed to operate at speeds of up to 350 km/h, subject to infrastructure readiness, and will be equipped with ERTMS/ETCS signalling systems and ASFA.
The tender places particular emphasis on delivery timelines, requiring the first five units within 40 months and full deployment within 78 months, with a supply rhythm of approximately one train every six weeks.
Each unit will provide a minimum of 450 seats across two classes and include accessibility features, bicycle space and onboard catering.
Award criteria combine technical, economic and maintenance elements, with weighting given to availability, operational reliability and compliance with delivery milestones.
The specification aligns with EU interoperability standards, allowing potential deployment beyond Spain, subject to certification and market access conditions.
The procurement signals continued expansion of high-speed rail capacity in Spain, as the operator responds to sustained demand growth and competitive pressure in the liberalised market.
UK reviews HS2 specification as programme reset exposes cost and delivery gaps
The UK government is assessing a reduction in the design speed of High Speed Two as part of a broader reset of the programme, following a reassessment of costs, scope and delivery timelines.
Transport Secretary Heidi Alexander said earlier plans underestimated the scale of remaining work, with HS2 Ltd lacking an accurate view of progress and outstanding delivery. The reset is intended to establish a more reliable cost and schedule baseline.
The current specification provides for operating speeds of up to 360 km/h, above typical high speed rail benchmarks of 300 to 350 km/h. The government has commissioned an assessment of whether aligning the specification with existing systems could reduce complexity and delivery risk.
Preliminary analysis indicates that a lower speed specification could generate savings in the low billions of pounds and enable earlier entry into service, including by avoiding constraints linked to testing infrastructure.
No decision has been taken. The HS2 chief executive is expected to report before the summer recess, with updated cost and schedule estimates to follow.
Total programme expenditure reached £43.6 billion by the end of February 2026. The Department for Transport said strengthened oversight and performance controls will remain in place pending the outcome of the reset.
