MEPs seek €91.28 billion infrastructure fund with separate military mobility pillar

The EU’s next Connecting Europe Facility should receive €91.28 billion for 2028–2034, with separate allocations for transport, military mobility, and energy, under a draft position adopted by the European Parliament’s industry and transport committees.

The committees backed an increase from the €81.42 billion proposed by the European Commission, approving the text by 101 votes to one, with 17 abstentions. MEPs want €37.96 billion allocated to transport, €19.78 billion to military mobility, and €33.53 billion to energy, in current prices.

Transport funding would prioritise the timely completion of cross-border sections of the trans-European transport network, TEN-T. Eligible activities would include multimodal freight terminals and passenger hubs, maritime and inland waterway ports, recharging and refuelling infrastructure, road safety measures, interoperability, and digital transport services.

The military mobility pillar would support infrastructure serving both civilian and military purposes, particularly projects identified as priorities under the forthcoming military mobility regulation. Investment would help adapt TEN-T infrastructure to military requirements through reinforced road and rail bridges, enlarged infrastructure, upgraded tunnels, and improved access to ports and airports.

Energy funding would support cross-border electricity interconnections, grid development, and renewable and low-carbon energy projects. It would also cover the production, storage, and transport of EU-produced renewable and low-carbon fuels, alongside physical protection, preparedness, and cybersecurity measures.

MEPs want projects contributing to several programme objectives to qualify for higher co-funding rates. They also propose setting funding criteria in the regulation and requiring multiannual Commission work programmes to strengthen accountability.

The committees separately endorsed a mandate for negotiations with the Council by 85 votes to 24, with nine abstentions. That mandate still requires approval by the full Parliament. The proposed regulation forms part of negotiations on the EU’s 2028–2034 long-term budget.

Commission schedules ReFuelEU Aviation and truck CO₂ initiatives for 2027

The European Commission plans to bring forward a transport simplification package, a legislative initiative on ReFuelEU Aviation, and a review of heavy-duty vehicle CO₂ standards in 2027, according to its work programme and accompanying annex.

The 2027 work programme, dated the 4th of November, schedules the transport simplification package for the first quarter, the ReFuelEU Aviation initiative for the second, and the truck CO₂ review for the third. All three are listed as legislative initiatives accompanied by impact assessments.

The annex places the ReFuelEU Aviation initiative under the objective of simplifying the regulatory environment in transport. It does not specify proposed changes to fuel requirements or other obligations. Similarly, the work programme commits to reviewing heavy-duty vehicle CO₂ standards to advance climate neutrality while preserving automotive competitiveness, without setting out revised targets.

A post-2030 energy framework and simplification package is scheduled for the first quarter. The Commission says the framework should simplify rules while ensuring that the 2040 framework delivers on decarbonisation objectives. It also intends to pursue voluntary demand aggregation and joint procurement schemes.

The programme links these measures to efforts to address high energy prices and pressure on fuel availability. It refers to the proposed postponement of certain methane regulation obligations, a review of temporary state aid arrangements for exposed industrial sectors, and a short-term framework to optimise EU refineries.

For industrial supply chains, the Commission plans to establish a European Corporation on Critical Raw Materials, working with the Critical Raw Materials Centre. The communication identifies electric cars and batteries among the sectors dependent on securing those resources, although the annex does not assign the initiative a quarter.

Further measures to accelerate permitting are scheduled for the third quarter, with the Commission leaving open whether these will be legislative or non-legislative. Transport is also among five sectors identified for a proposed blueprint on industrial artificial intelligence.

The timetable remains indicative and subject to preparatory work, including impact assessments. The work programme does not itself amend existing transport or energy obligations.

Steel producers and civil society seek safeguards for green steel credits under car CO₂ rules

Steel industry and civil society organisations have urged EU lawmakers to restrict additional flexibility under car and van CO₂ standards, warning that alternative compliance routes could undermine demand for low-carbon steel credits.

In a joint letter dated the 11th of November, the organisations argue that the proposed steel mechanism could support investment in European production, but only if manufacturers have a sufficient incentive to use it.

The signatories estimate that the proposed 7% compensation mechanism would generate demand for 15 million tonnes of primary green steel by 2035. They compare this with potential European lower-carbon steel supply of 21.7 million tonnes, conditional on planned projects moving to green hydrogen. Around half of those projects have not yet reached a final investment decision, the letter says.

Their central concern is that steel credits would require additional industrial investment and impose a compliance cost on carmakers, while other forms of flexibility could offer cheaper alternatives. Lower overall ambition, wider fuel-related exemptions, or weaker plug-in hybrid rules could therefore leave the steel mechanism unused, they argue. The organisations also oppose a supercredit system, saying it would generate limited demand and weaken the investment signal.

The letter proposes starting the mechanism in 2030, with credits limited to compensating no more than 3% of fleet emissions during 2030–2034. Projects using a combination of green hydrogen and natural gas could qualify during that period if they had committed to fossil-free ironmaking and steelmaking. Mass balancing at direct reduced iron plants would allow transitional production to be recognised.

From 2035, eligibility should be reserved for fossil-free production pathways. The signatories seek emissions-intensity labelling that takes account of scrap content, allowing primary and secondary steel production to be compared fairly.

They also want an EU-origin requirement covering steelmaking and the direct reduced iron stage. However, the letter allows for limited use of green iron from outside the EU, citing constraints on European iron supply. The recommendations seek to link automotive compliance spending to European industrial investment while preserving incentives to electrify vehicles.