PowerUpEurope Mobility

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POSITION | TRANSPORT POLICY | EUROPEAN ELECTION 2024

PowerUpEurope Mobility

Our recommendations for sustainable mobility, competitive logistics and global connectivity

June 2024

Mobility and logistics as a requirement for economic success

The economic success of the European Union is based on the efficiency of our transport systems. The transport sector makes the European internal market possible, generates jobs and added value, creates mobility for people and goods and is a requirement for the success of our industries in international competition The transport sector contributes around 5 percent to the EU's GDP and currently employs around 10 million people – 5 percent of the total EU workforce. The coronavirus pandemic and Russia's invasion of Ukraine have clearly demonstrated the importance of resilient logistics chains for the European economy and society The free movement of people and goods is therefore rightly part of the four fundamental freedoms of the EU.

The foundations for efficient and sustainable transport are not only laid by decisions in the area of EU transport policy. A sustainable, resilient, and affordable supply of energy and raw materials, the realisation of the potentials of the circular economy and progressive digitalisation are requirements for the competitiveness of the sector and its successful transformation to climate neutrality. Furthermore, the removal of bureaucratic hurdles and the reduction of reporting obligations to reduce administrative burdens and increase efficiency are of great importance. In order to improve the framework conditions for mobility within the EU, it is essential to overcome the Commission's previous divisional thinking, intensify dialogue between departments and refine coordination processes.

Therefore, please also note the cross-sectoral recommendations of our BDI campaign #PowerUpEurope, as well as the focus on transport in our BDI recommendations on EU energy and climate policy.

Anna Baierl | Mobility and Logistics Department | a.baierl@bdi.eu | www.bdi.eu

Priorities for the coming legislative period

European perspective on mobility and logistics

▪ Strengthening and financing a reliable and efficient transport infrastructure and intermodal interfaces

▪ Advancing sustainability and climate protection through the monitoring, consistent implementation, and necessary readjustments of the Fit for 55 package while adhering to the principle of technological openness

▪ Consistently exploiting the potential of digitalisation in the mobility sector

Road transport

▪ Ensure defossilisation of road transport by ramping up alternative drive systems and renewable fuels

▪ Ensure ramp-up of alternative drives and fuels by expanding the charging and H2 refuelling infrastructure

▪ Set clear CO2 price signals for road transport via ETS 2 and a CO2-orientated energy tax on fuels

▪ Optimising the legal framework for weights and dimensions in road freight transport

▪ Investment ramp-up for the resilience of the Trans-European Road Network (TERN) and promotion of low-carbon, robust and durable construction methods

Rail transport

▪ Reliable and high-quality European rail infrastructure through more digitalisation and interoperability

▪ Strengthening the attractiveness and competitiveness of combined transport by modernising the legal framework

Air transport

▪ Ensuring connectivity and sovereignty by refocussing on international competitiveness

▪ Promoting the availability of Sustainable Aviation Fuels (SAF) through incentives, reliable financing instruments and flexible rules for the market distribution

▪ Enabling technology leadership and continuous innovation through a European ecosystem for climate-neutral aviation and infrastructure for alternative drive systems

▪ Organising air traffic management and aviation security efficiently and balancing noise protection with economic interests

Maritime Transport

▪ Strengthen international competitiveness, enable climate-neutral maritime transport, and ensure the availability of renewable fuels

▪ Strengthening the resilience of maritime supply chains and competition in the sea freight market

European

perspective on mobility and logistics

Strengthening and financing a reliable and efficient transport infrastructure and intermodal interfaces

High-quality transport infrastructure across the EU is crucial for safety, sustainability, competitiveness, and efficient cross-border transport. The EU and its Member States must ensure adequate funding to prepare infrastructure networks for future transport needs and to promote environmental and climate protection in transport

Recommendations for action

▪ Renewal and significant increase of the Connecting Europe Facility (CEF) as part of the next longterm EU budget for the period 2028-2035

▪ Timely completion of the trans-European transport network (TEN-T) with the respective deadlines of 2030 for the core network, 2040 for the extended core network and 2050 as the latest date for completion of the entire network

▪ Strengthening the infrastructure, efficiency, and availability of intermodal freight terminals, including the modernisation and optimisation of existing facilities

▪ Appropriate funding and framework conditions for the advance, EU-wide and needs-based development of the necessary refuelling and charging infrastructure for alternative drive systems and fuels for all modes of transport, at least at the target level defined in the Alternative Fuels Infrastructure Regulation (AFIR), as an essential requirement for achieving the climate protection targets in transport and for meeting specific regulatory requirements such as the EU-wide CO2 fleet limits for passenger cars, light and heavy commercial vehicles.

Advancing sustainability and climate protection through the monitoring, consistent implementation and necessary readjustments of the Fit for 55 package while adhering to the principle of technological openness

Mobility and logistics play a key role in achieving the climate protection targets. European companies are investing in more climate and environmentally friendly production processes and logistics to support the goal of EU climate neutrality by 2050. At the same time, manufacturers of innovative drive technologies and fuels as well as mobility service providers are enablers for successful climate protection in transport. Therefore, it is crucial to secure an ecologically, economically and socially balanced transformation path for future mobility The EU has a responsibility to provide incentives and specific support measures to ensure that charging and refuelling infrastructures - for all modes of transport and all drive systems and fuels - are developed in advance, in line with demand and across the board throughout the EU

Recommendations for action

▪ Closely monitor and evaluate the implementation and impact of the transport policy-relevant dossiers of the Fit for 55 package on the EU economy and the transport sector and, if necessary, correct them using the review clauses included. The aim here is to ensure that the previously lacking balance of ambitions and coherence between the dossiers is achieved and that negative effects on international competitiveness are corrected.

The measures should focus on the following dossiers in particular:

- the AFIR

- CO2 fleet regulations for passenger cars and light commercialvehicles as wellas for heavy duty vehicles

- the ReFuelEU Aviation

- the FuelEU Maritime

- the RED III

- ETS 2 and the ETS for air transport and shipping

▪ Quickly launch a new initiative to revise the EU Energy Tax Directive (ETD) for road, rail, and inland waterway transport, which will create clear incentives to avoid fossil fuels in these modes of transport. The BDI rejects national or European taxation of fuels for air and sea transport, as this would inherently lead to disadvantages for European companies in international competition. A pragmatic approach focussing on the climate protection potentials in road, rail and inland waterway transport should therefore be chosen.

▪ Support the defossilisation1 of all modes of transport through tailored incentives and supportive policy measures as well as a continuous and appropriate financing framework, in particular for the rapid ramp-up of charging and refuelling infrastructures as well as alternative drive systems and renewable fuels, including the necessary energy infrastructures such as grid connections and H2 and CO2 infrastructures.

▪ The strategy for defossilisation must also include off-road vehicles and work machines that will be dependent on the use of carbon-neutral fuels in the foreseeable future

▪ Increased efforts are needed for all modes of transport to achieve the goals and ambitions set out in the AFIR:

- In road transport, the development of an EU-wide charging infrastructure for passenger cars, light commercial and heavy-duty vehicles for direct electrification is required simply to fulfil the minimum targets along the TEN-T and in both urban and peri-urban areas. However, the minimum targets are not sufficient to support an ambitious ramp-up of electric vehicles. The level of ambition for the charging infrastructure must therefore be raised further. In addition, an H2 refuelling infrastructure is needed for gaseous (350 bar and 700 bar) and liquid hydrogen as well as for natural gas and bio natural gas as bridging technologies.

- In aviation and sea transport, the expansion of alternative drive systems, including direct electrification and hydrogen applications as well as renewable fuels, must be facilitated by an appropriate charging, refuelling and bunkering infrastructure at airports, seaports, and inland ports.

- In the railway sector, enough charging stations for battery-powered trains and hydrogen refuelling stations must be installed if direct electrification of railway lines is not possible.

▪ Implement technological openness as a guiding principle for a sustainable mobility sector.

▪ Enable and further promote climate protection contributions from the existing fleets of all modes of transport by blending renewable fuels, by increasing efficiency and by using the potentials of digitalisation

▪ Expand cooperation with PtL-producing countries through energy partnerships and the establishment of international markets for renewable fuels of non-biological origin (RFNBO) and CO2 and develop efficient transport infrastructures for renewable fuels to enable the cost-efficient supply of

1 Instead of decarbonisation, we use the term defossilisation. This is because hydrocarbons will continue to be required for many areas of application in the future, for example for basic chemical products, lubricants or e-fuels. In addition to energy, carbon from fossil sources must also be replaced by renewable carbon. The term defossilisation, i.e. the move away from fossil energy and carbon sources, describes this situation more accurately.

RFNBO in the EU. To this end, trade barriers must be removed, and a harmonised regulatory framework created. For example, Delegated Act 2023/1185 restricts the crediting of hydrogen derivatives containing CO2 from industrial sources if the producing country does not have an effective pricing system for carbon emissions As only a few countries outside the EU currently fulfil this criterion, the European Commission must find practical solutions for the market ramp-up phase

▪ Accompany European climate protection initiatives with corresponding international climate protection initiatives at ICAO and IMO level to ensure the international competitiveness of European companies.

▪ Continue a high level of European funding for research and development for innovations in the mobility sector.

▪ Achieve transparent and harmonised calculation of transport-related greenhouse gas emissions via CountEmissions EU. An internationally recognised, technology-open and unbureaucratic approach must be chosen to ensure it provides effective incentives for climate protection in passenger and freight transport and is applied across all modes of transport with broad impact.

▪ Revise the taxonomy criteria for the transport sector in a practical and technology-neutral manner to enable broad implementation of the criteria and mobilise investment in the transformation of the sector.

Consistently exploiting the potential of digitalisation in the mobility sector

The ongoing digital transformation also offers great opportunities for the mobility sector in Europe. As the driving force behind innovation and growth, the industry has the opportunity to not only optimise processes through the consistent use of digital technologies - such as the integration of intelligent transport systems, the increased networking of transport modes and the introduction of automated vehicles - but also to make them sustainable and at the same time offer new, data-based value-added services. The EU should play a leading role here in order to strengthen the competitiveness of the European economy and at the same time respond to the pressing issues of climate change.

Recommendations for action

▪ Continue to promote and incentivise the further expansion of digital infrastructures for modes of transport, including across the board in airspace and along road, rail, and urban mobility, in the European Member States and across borders in the TEN-T network, in particular via CEF

▪ Ensure EU-wide availability of high-quality public transport infrastructure data in digital, machinereadable format

▪ Advancing connected and automated driving through:

- Further support the path for automated and connected driving on road and rail and ensure a harmonised approach, at least at European level.

- Harmonise and standardise physical and digital characteristics of transport infrastructure across the EU and improve access to this data for third parties

- Place a special focus on promoting the increased use of automated underground, suburban and long-distance railway operations, and autonomous shuttles in public transport

- Consistently pursue the path towards a legal framework for the authorisation of digital vehicles with highly automated functions

- Clarify European data protection and security issues.

▪ Maintain a high level of support for research and development, including support for pilot projects and the exchange of best practices between Member States.

▪ Support the establishment of voluntary data and service platforms for data exchange in the mobility sector at EU level, which are based on European values and consider the interests of the players while respecting market economy and security aspects, especially those relevant to cyber security.

▪ Continue to politically support the harmonisation of standards and regulations at EU level

Road transport

Ensure defossilisation of road transport by ramping up alternative drive systems and renewable fuels

As part of the Fit for 55 package, the EU has agreed on extremely ambitious CO2 fleet limits for new cars and light commercial and heavy duty vehicles. At the same time, climate protection options are still needed for existing fleets. In addition to the maximum ramp-up of electromobility, the use of lowCO2 fuels and increasingly CO2-neutral fuels in the existing fleets of passenger cars and commercial vehicles is crucial for the defossilisation of road transport in the next EU legislative period. EU policy is called upon to set the right course for a rapid ramp-up of alternative drive systems and renewable fuels. There is also a need to incentivise investment in new technologies, including the ramp-up of a European hydrogen economy and CO2-neutral fuels.

Recommendations for action

▪ Closely monitor the ramp-up of alternative drive systems and the expansion of charging infrastructure. The review of the CO2 fleet regulation for passenger cars and light commercial vehicles (2026) and the CO2 fleet regulation for heavy duty vehicles (2025 report on renewable fuels and 2027) should focus primarily on progress in the expansion of the charging infrastructure and other supporting framework conditions

▪ Development of incentives and financing mechanisms to promote and secure long-term investment in climate-friendly technologies and in the ramp-up of a European hydrogen economy and CO2neutral fuels This also includes the timely legal implementation of a new vehicle category for vehicles running exclusively on CO2-neutral fuels, including a practicable and realistic definition for CO2-neutral fuels - both for passenger cars and light commercial vehicles as well as for heavy duty vehicles

▪ Provide incentives for EU Member States to ensure a largely harmonised and ambitious implementation of RED III for road transport across Europe, particularly with regard to the contribution of existing fleets of passenger cars, light commercial and heavy-duty vehicles to defossilisation.

▪ Create a secure investment condition by updating RED III for the transport sector regarding requirements beyond 2030

▪ Increase the contribution of existing fleets of passenger cars, light commercial, and heavy-duty vehicles to defossilisation, also through bridging technologies, in particular by blending low-CO2 fuels and increasingly CO2-neutral fuels.

▪ Conclude raw material and energy partnerships to ensure a secure supply and enable further diversification.

Ensure ramp-up of alternative drives and fuels by expanding the charging and H2 refuelling infrastructure

In addition to CO2 pricing in road transport, the advance development of charging and H2 refuelling infrastructures is a key requirement for the ramp-up of alternative drives and fuels. The development must be secured through efficient energy infrastructures such as grid connections and H2 transport infrastructures. In regulatory terms, the AFIR is the central lever for the ramp-up of the charging and

H2 refuelling infrastructure. However, the expansion targets set there do not meet the necessary demand for either passenger cars or heavy-duty vehicles.

Recommendations for action

▪ Significantly increase the level of ambition for the expansion of the alternative H2 refuelling and charging infrastructure during the AFIR review (2026) in line with the ambitious targets of the two fleet regulations.

- Just to fulfil the minimum targets along the TEN-T and in both urban and peri-urban areas, the development of an EU-wide charging infrastructure for cars, light commercial and heavy-duty vehicles for direct electrification is required. However, the minimum targets are not sufficient to support an ambitious ramp-up of electric vehicles. The level of ambition for the charging infrastructure must therefore be raised further.

- In addition, a comprehensive H2 refuelling infrastructure for gaseous (350 bar and 700 bar) and liquid hydrogen is needed

- Refuelling infrastructures for natural gas and bio natural gas as bridging technologies also need to be considered

▪ Realise appropriate funding and further framework conditions for the advance, EU-wide and demand-oriented development of the H2 refuelling and charging infrastructure for passenger cars, light commercial, and heavy-duty vehicles, at least at the target level defined in the AFIR

▪ Ensure renewable energy sources and efficient grid connections for electromobility. In doing so, focus on better local dovetailing between energy generation and consumption systems in conjunction with battery buffer storage in order to specifically relieve the burden on electricity grid expansion.

Set clear CO2 price signals for road transport via ETS 2 and a CO2-orientated energy tax on fuels

In addition to the advance development of charging and H2 refuelling infrastructures, CO2 pricing in road transport is a key requirement for the ramp-up of alternative drive systems and fuels. The EU remains called upon to set clear CO2 price signals through a largely standardised implementation of ETS 2 for road transport and a reform of the EU Energy Tax Directive in the EU Member States.

Recommendations for action

▪ Quickly launch a new initiative to revise the EU Energy Tax Directive, which will create clear incentives to avoid fossil fuels in road transport thanks to a CO2 steering effect.

▪ Provide incentives for EU Member States to ensure a largely harmonised implementation of ETS 2 for road transport from 2027 without double national burdens.

Optimising the legal framework for weights and measures in road freight transport

Greater harmonisation of the European legal framework for weights and measures in road freight transport offers fundamental potential for increasing efficiency, which can also have a positive impact on the carbon footprint of intermodal transport chains Particularly during the revision of the EU directive on weights and measures, previously untapped potential for increasing efficiency and thus optimising CO2 emissions in the transport sector should be exploited. It is important to ensure that an adaptation of the European legal framework for weights and measures is in line with the revision of the Combined Transport Directive and that the compatibility of the modes of transport remains guaranteed.

Recommendations for action

▪ Facilitating the cross-border use of long trucks between EU states, which already permit their use today, and creating European regulations for the standardised use of vehicle combinations such as the Type 1 long truck

▪ The increase in weights in conventional road freight transport must be intensively analysed with regard to the impact on the road infrastructure and possible intermodal effects. The definition of a positive network beyond the TEN-T network, especially in the area, could be a suitable instrument to qualify and refute concerns regarding the resilience of the infrastructure.

▪ Setting up support programmes for CO2-saving measures on trucks in order to increase the market penetration of aerodynamic measures that have already been approved, for example

Investment ramp-up for the resilience of the Trans-European Road Network (TERN) and promotion of low-carbon, robust and durable construction methods

As part of the EU's Global Gateway connectivity strategy, greater consideration must be given to the resilience of transport modes. In 2022, the European Commission only made around 1.5 billion euros available for investment in all modes of transport. An investment ramp-up is therefore not only necessary, but urgently required. In our view, an increase in the investment budget by a factor of three to four is urgently needed.

The road infrastructure forms the backbone of our economic and military resilience. Investments in an efficient road infrastructure must therefore not be delayed any longer. The expected increase in panEuropean supply chains and the desired strengthening of the regional economy can only go hand in hand with the parallel expansion and maintenance of the TERN. It should be noted that the EU must take greater account of CO2-saving construction processes in its funding environment.

Recommendations for action:

▪ Quadrupling the investment budget to promote national investment in a resilient and conductive network of heavy goods corridors.

▪ Long-term promotion of the expansion of the TERN with a common load standard in order to map the required heavy goods capacities and secure trans-European transport.

▪ Setting up a transformation programme to reduce CO2 emissions in the construction of road infrastructure.

Rail transport

Reliable and high-quality European rail infrastructure through more digitalisation and interoperability

The EU strategy for sustainable and intelligent transport has already set ambitious targets. High-speed transport is to double by 2030. In addition, rail freight transport in the EU is to grow by 50 % by 2030 and achieve a modal split share of 30 % By 2050, the volume of high-speed transport should triple and that of rail freight transport double. These ambitious goals must be reflected more strongly in EU transport policy in the coming legislative period.

Recommendations for action

▪ The development of a high-performance, fully interoperable, and digitalised rail network

▪ Development and construction of cross-border high-speed rail lines between European metropolitan regions

▪ A well-structured, transparent, and practicable procedure for managing and coordinating European railway capacities and the recognition and greater prioritisation of rail freight transport, particularly in cross-border traffic

▪ Rapid, dedicated, and adequate funding and efficient management of the European Rail Traffic Management System (ERTMS)

▪ Ensuring the coordinated European introduction of the Digital Automatic Coupling (DAC) through the establishment of a central European competence centre and sufficient financial support in the multiannual financial framework

▪ Ensuring sufficient funds for the efficient expansion of railway in Europe, in addition to increasing the CEF funds, also through the targeted use of revenues from the EU ETS via the EU Innovation Fund for innovative or digital railway projects such as the DAC

Strengthening the attractiveness and competitiveness of combined transport by modernising the legal framework

The historically evolved patchwork of national regulations and incentive systems as well as inadequate infrastructure prevent intermodal solutions from realising their full potential. A swift adoption of the revision of the Combined Transport Directive is therefore urgently needed in order to update the current and very outdated legislation and thus increase the competitiveness of rail freight transport and especially combined transport between all modes of transport - without imposing additional administrative or financial burdens on unimodal transport finance mechanisms

Recommendations for action

▪ Creation of a common, ambitious framework for combined transport at EU level with a focus on standardisation and mass suitability

▪ Provision of harmonised economic incentives and financial mechanisms to promote national and cross-border intermodal freight transport

▪ Toll exemption for roadside pre- and on-carriage in combined transport.

Aviation

Ensuring connectivity and sovereignty by refocussing on international competitiveness

The Fit for 55 package provides important impulses for investments in the key levers for climate-neutral aviation: highly efficient aircraft, Sustainable Aviation Fuels (SAF) and alternative drive systems in the medium to long term. However, the EU has failed to ensure that the revision of the European Emissions Trading Scheme for aviation (EU ETS Aviation) and, in particular, the quota obligations for the use of SAF (ReFuelEU Aviation) are designed in a competition-neutral manner and that the aviation-specific targets and regulations are adequately interlinked with other relevant regulations (e.g. RED III). The current design of the ETS and ReFuelEU Aviation increases the costs via European hubs and thus incentivises the circumvention of cost-intensive European climate protection instruments. As a result, there is a risk of traffic being shifted to non-European hubs where less ambitious climate protection requirements apply (carbon leakage).

The EU must therefore use the coming legislative period to refocus on Europe's international competitiveness, correct policy measures that are harmful to climate and European industry and support the aviation industry on the path to climate neutrality Further one-sided burdens that result in competitive disadvantages for European companies and carbon leakage and thereby bind capital that is urgently needed for investments in climate protection must be avoided

Recommendations for action

▪ Strengthening the commitment for internationally harmonised and effective climate protection policy at the level of the International Civil Aviation Organisation (ICAO)

▪ Utilising the opportunity provided by ReFuelEU Aviation to introduce an instrument to correct the distortions of competition resulting from the SAF blending quotas for EU airports from 2025 onwards as quickly as possible One way to establish a level playing field is to introduce a European, final destination-based, and earmarked levy to finance the SAF ramp-up The levy should replace the existing national aviation taxes Additional instruments fair competition, such as the extension of the Carbon Border Adjustment Mechanism (CBAM) to international passenger flights, should be examined. The functionality and practicability of the instruments must be guaranteed.

▪ Lifting the cap or at least a significant increase the compensation for the use of Sustainable Aviation Fuels via the free certificates in the ETS (SAF Allowances) The 20 million SAF Allowances available to date will not be nearly enough to offset the additional costs of SAF.

▪ Avoiding non-CO2 effects by integrating of non-CO2 optimisation approaches into flight planning and routing. When designing policy instruments, the avoidance of non-CO2 effects must take priority over pricing. Carbon leakage and distortions of competition must be avoided

▪ Maintaining the intra-European scope of the EU ETS Aviation

▪ The exclusion of national and European taxes on jet fuel.

Promoting the availability of Sustainable Aviation Fuels (SAF) through incentives, reliable financing instruments and flexible marketing rules

Sustainable Aviation Fuels are the only option available to achieve extensive defossilisation of air transport - even when battery-electric or hydrogen-based drive systems become available for short distances However, the amount of SAF is currently limited and the costs are considerably higher than for conventional jet fuel Investments in RFNBO are very risky for first movers. The EU must therefore ensure the ramp-up of SAF through effective incentives, reliable financing instruments and flexibility for the distribution of SAF Quota obligations alone will not result in a market ramp-up of SAF.

Recommendations for action

▪ Supporting first movers via funding programmes for research and demonstration plants on an industrial scale

▪ Introducing a European, final destination-based, and earmarked levy to reliably finance the SAF ramp-up

▪ Carbon Contracts for Difference and the expansion of SAF Allowances to reduce the price difference between sustainable and fossil aviation fuels.

▪ The pragmatic design of the SAF flexibility mechanism set out in ReFuelEU Aviation through flexible deployment and crediting options for SAF (book & claim).

Enabling technology leadership and continuous innovation through a European ecosystem for climate-neutral aviation and infrastructure for alternative drive systems

The European aviation industry is leading in global competition To strengthen its position in a rapidly growing international market, the EU must set suitable frameworks for an accelerated market introduction of innovative, sustainable and efficient aircraft (SAF-based, electric, hybrid-electric, hydrogenbased) and the ramp-up of SAF. This should also include research and innovation on other environmental impacts of aviation, such as non-CO2 effects or noise.

Recommendations for action

▪ The establishment and funding of a European ecosystem for testing and demonstrating the potential of climate-neutral flying, for example within the European Framework Programmes for Research and Innovation and the maintenance of successful instruments and partnerships (currently Horizon Europe and the successor programme FP10 with its Clean Aviation, SESAR and Collaborative Research instruments in particular). Funding must be expanded accordingly.

▪ The targeted use of revenues from the EU ETS Aviation for the defossilisation of aviation via the EU Innovation Fund

▪ The development of charging and refuelling infrastructures for alternative drive systems at airports

▪ The practical and technology-open revision of the taxonomy criteria for aviation to enable their implementation. In addition, all aviation segments, e.g. business aviation, should be included

Organising air traffic management and aviation security efficiently and balancing noise protection with economic interests

Efficient airports are crucial for Europe's competitiveness and sovereignty Cuts in airport operations should therefore only be made after a comprehensive assessment of the social, economic, and environmental impacts of all available measures to solve noise and environmental protection problems. The European security architecture for air transport must be designed in an effective and unbureaucratic way and must be implemented in a harmonised manner across Europe and at an international level to achieve cross-border security gains while ensuring international competitiveness. Furthermore, the EU and its Member States finally need to realise the possible efficiency gains within the air traffic management system (ATM).

Recommendations for action

▪ The full implementation of the Single European Sky (SES) to enable more efficient flight and thus lower fuel consumption and higher punctuality

▪ The maintenance of the internationally recognised ICAO approach to aircraft noise management (Balanced Approach) by the EU and its Member States, federal states, and local authorities

▪ More resource efficiency as well as European and international harmonisation of the security regime with a focus on real potential risks in air transport and along the supply chain.

Maritime transport

Strengthen international competitiveness, enable climate-neutral maritime transport, and ensure the availability of renewable fuels

With the extension of the European Emissions Trading System (EU ETS) to maritime transport from 2024 as well as the introduction of greenhouse gas intensity targets and RFNBO quotas via FuelEU Maritime, the EU is providing impulses for the defossilisation of shipping. This creates investment

security for shipowners, manufacturers, and distributors of renewable fuels. However, the EU has failed to ensure that its requirements are competition neutral The design of the ETS and FuelEU Maritime also sets requirements for shipping in third countries which risks traffic being shifted to non-European ports where less ambitious climate protection requirements apply (carbon leakage). The EU must closely monitor and correct these developments.

Like aviation, maritime transport faces the challenge that renewable fuels, the key lever for defossilising the sector, are only available in insufficient quantities and at high cost. The EU must therefore create suitable framework conditions to accelerate the market ramp-up of innovative drive systems and sustainable marine fuels.

Recommendations for action

▪ Strengthening the commitment to internationally harmonised and effective climate protection measures at the level of the International Maritime Organisation (IMO).

▪ Supporting first movers in the production of sustainable fuels through funding programmes for research and demonstration plants on an industrial scale, effective incentive systems, reliable financing instruments and flexible marketing options

▪ Ensure the availability of renewable fuels for maritime transport in third countries through international energy partnerships.

▪ The establishment and financing of a European ecosystem for testing and demonstrating climateneutral shipping and the ramp-up of renewable fuels through the targeted use of revenues from the EU ETS via the EU Innovation Fund

▪ The development of charging, refuelling and bunkering infrastructures for alternative drives and renewable fuels.

▪ The pragmatic and efficient organisation of the placing on the market of sustainable fuels through flexible use and crediting options (book & claim).

▪ Utilising the climate protection potential of intermodal transport, including in short sea shipping. Efficient harbours and waterways are urgently needed for this.

▪ The extension of the EU ETS and FuelEU Maritime to ships with a gross tonnage of less than 5 000.

▪ The exclusion of national and European taxes on fuels in maritime transport.

▪ The practical and technology-neutral revision of the taxonomy criteria for shipping to enable their implementation. In addition, all shipping segments should be included - even if they are not defined in the EEDI/EXI

Strengthening the resilience of maritime supply chains and competition in the sea freight market

Reliable and robust maritime supply chains are of fundamental importance to the shipping industry. This is particularly true considering the current economic and geopolitical uncertainties. The coronavirus pandemic has highlighted a fundamental competitive deficit in international container shipping, which has manifested itself in a lack of transport capacity, unpunctuality, and quality deficits. The EU should therefore continue to emphasise greater transparency and competition in international maritime transport even after the expiry of the Consortia Block Exemption Regulation (CBER) and closely monitor developments in the sea freight market

Imprint

Federation of German Industries (BDI)

Breite Straße 29, 10178 Berlin

www.bdi.eu

T: +49 30 2028-0

Lobby registration number: R000534

EU Transparency Register: 1771817758-48

Editorial team

Uta Maria Pfeiffer

Head of Department Mobility and Logistics

T: +49 30 2028-1436 u.pfeiffer@bdi.eu

Petra Richter

Deputy Head of Department Mobility and Logistics

T: +49 30 2028-1514

p.richter@bdi.eu

Anna Baierl

Senior Manager EU Transport Policy Mobility and Logistics

T: +32 2 792 10-09 a.baierl@bdi.eu

Raffael Kalvelage

Senior Manager Logistics, Road and Rail Transport Mobility and Logistics

T: +49 30 2028-1528 r.kalvelager@bdi.eu

Marco Kutscher

Senior Manager Air and Sea Transport Mobility and Logistics

T: +49 30 2028-1751

m.kutscher@bdi.eu

BDI document number: D 1937

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