ENVI divided over technological neutrality in revised CO2 standards for cars and vans

MEPs in the European Parliament’s environment committee expressed mixed views on the technological neutrality of the Commission’s proposal to revise CO2 standards for new passenger cars and light commercial vehicles during an exchange of views with climate commissioner Wopke Hoekstra on the 28th of January 2026.

Presenting the proposal, Hoekstra said the revised framework was intended to provide predictability for manufacturers while expanding compliance options, without undermining the objective of CO2 neutrality. He said alternative fuels were not excluded in principle, but that e-fuels were omitted because they currently lack sufficient market value and commercial viability.

Several MEPs questioned whether the proposal was genuinely technology-neutral. EPP coordinator Peter Liese welcomed the overall structure, arguing it allowed continued use of combustion engines while maintaining climate targets. He nevertheless pressed the Commission on the limited role assigned to biofuels and questioned whether the fuel credit mechanism sufficiently differentiated between manufacturers. Liese also supported the inclusion of green steel provisions, while warning that the approach could disadvantage manufacturers choosing alternative materials to improve vehicle efficiency.

S&D’s Tiemo Wölken challenged the fuel credit mechanism, arguing that existing transport fuel obligations would already result in biofuel shares above the levels assumed in the proposal by 2035. He said this risked granting manufacturers compliance credits without additional effort, effectively weakening the CO2 targets. He also questioned whether slower uptake of battery electric vehicles could have knock-on effects for fuel demand.

Renew’s Gerben Jan Gerbrandy argued that market dynamics were already favouring electrification and questioned whether the proposal sent a sufficiently clear signal to industry. He said electric vehicles’ superior energy efficiency and growing market share suggested manufacturers should focus investment on electrification rather than extending combustion engine development.

Hoekstra defended the proposal’s approach to technological neutrality, arguing that neutrality must still deliver CO2 neutrality. He said hybrid and range extender configurations could be scalable within the framework. On market outcomes, Hoekstra said he expected the majority of consumers to choose electric vehicles by 2035 based on performance and cost developments, adding that he had not yet seen a viable business case for electro fuels at scale.

European airports face €360bn investment gap as growth slows and costs rise, ACI Europe report warns

European airports face a structurally altered economic outlook that threatens their long-term financial viability and investment capacity, according to a new report published by ACI Europe based on research by the Boston Consulting Group.

The report argues that the post-COVID period marks the start of a new long-term cycle for Europe’s airports, characterised by slower traffic growth, rising capital and operating costs, and sustained downward pressure on revenues. It estimates that airports will need to invest around €360 billion by 2040 to modernise infrastructure, address capacity constraints, strengthen security, adapt to climate risks and deliver decarbonisation objectives.

While passenger traffic has largely recovered since the pandemic, many airports remain below 2019 levels. At the same time, the report finds that traffic growth is expected to slow structurally as a result of decarbonisation policies and changing market dynamics. Average annual passenger growth of 5.3% in the decade before 2020 is forecast to fall to between 2% and 2.5% through to 2043.

The study highlights sustained downward pressure on both aeronautical and non-aeronautical revenues. User charges and revenue per passenger have failed to keep pace with inflation in recent years, while changes in airline business models and increased competition between airports are eroding pricing power. Low-cost carriers are projected to account for around 60% of the European market by 2043, compared with 47% today, further intensifying competitive pressures.

At the same time, the cost of expanding and maintaining airport infrastructure is rising sharply. According to the report, capital expenditure per additional passenger is increasing significantly due to higher energy, materials and labour costs, longer planning procedures, climate adaptation requirements and the growing share of investments unrelated to capacity expansion. The analysis concludes that economies of scale traditionally associated with airport growth no longer apply.

The report estimates that between €45 billion and €75 billion in value generation could be at risk if current revenue and cost trends continue without corrective measures. It warns that this would undermine airports’ ability to finance required investments and reduce their attractiveness to private investors, with broader implications for connectivity, competitiveness and economic growth.

The findings are published as the European Commission prepares a new EU Aviation Strategy. The report argues that airports will need to reduce their reliance on volume growth and increase unit revenues to sustain investment, while regulators reassess approaches to airport charges, capacity planning and infrastructure approvals.

Airline lobbying against EU ETS aviation extension intensified ahead of 2025 review, InfluenceMap analysis finds

Airlines and aviation industry groups intensified lobbying efforts in 2025 against extending the EU Emissions Trading System to cover all flights departing the European Economic Area, according to a new analysis by InfluenceMap of regulatory submissions and public positions.

The analysis finds that legacy airlines and industry associations maintained long-standing opposition to expanding the geographical scope of the EU ETS, while support for the extension among low-cost carriers weakened, narrowing a previously observed split within the sector.

The EU ETS for aviation, originally proposed in 2008 with a global scope, currently applies only to intra-EEA flights. Its full implementation has been repeatedly delayed following industry pressure, including the suspension of coverage for long-haul flights in 2012 and the failure of a further expansion attempt in 2023. Emissions from flights outside the EEA are instead addressed through the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation, a voluntary offsetting mechanism introduced in 2016.

InfluenceMap reviewed responses to the European Commission’s July 2025 call for evidence on the EU ETS, alongside corporate statements and lobbying positions. It concludes that easyJet and Ryanair did not actively support extending the ETS to all departing flights in 2025, despite previously backing such an extension between 2021 and 2024.

Ryanair argued for aligning EU ETS compliance costs with CORSIA levels, a position also promoted by Airlines for Europe. This would significantly lower carbon costs for intra EEA flights compared with the current ETS framework. EasyJet, while supporting continued application of the EU ETS to intra-EEA flights, did not take a clear position on extending its scope and shifted towards supporting a strengthened CORSIA.

At the same time, long-haul airlines and industry associations continued to oppose any expansion of the ETS. Airbus and International Airlines Group opposed applying the ETS to all departing flights, while Air France KLM raised multiple concerns about the proposal. Airlines for America, Airlines for Europe and the International Air Transport Association argued for repealing the EU ETS for intra-EEA flights and replacing it with CORSIA, a move that would substantially weaken emissions constraints.

The analysis notes that a smaller group of actors, including Schiphol Airport, Wizz Air, the SASHA coalition and SkyNRG, continued to support extending the ETS to all departing flights, citing regulatory certainty and the potential to mobilise climate finance.

Under current legislation, the European Commission is due by July 2026 to assess whether CORSIA delivers emissions reductions consistent with the Paris Agreement. If it is deemed insufficient, the Commission could propose extending the EU ETS to all flights departing from the EEA. Long-haul flights currently account for the majority of aviation emissions but remain largely outside binding EU carbon constraints.