Mario Draghi urges on more EU funded cross-border projects for mobility

In the 19-page chapter that Mario Draghi earmarked for transport-related issues in his report on competitiveness, the priority of planning a roadmap towards a competitive, efficient, and resilient climate risks system stands out as the main road to follow.

According to the text, the EU should build on the TEN-T process and rely on cohesion policy to secure minimum connectivity everywhere in the EU. “Projects identified based on this enhanced planning should be subject to accelerated project permitting procedures,” the text reads while proposing tools such as legal deadlines for critical projects).

Cross-border connections, national links with cross-border impact, military mobility, efficiency, and climate risk resilience are recommended as the criteria for allocating priority EU funding. The former ECB president suggested that “dedicated reforms beyond the application of EU law could be incentivized through performance-based mechanisms in the EU budget.”

Member States from their part should “implement the fourth Railway package, to ensure open, competitive markets at the national level” and ensure “the timely implementation of the recently agreed Single European Sky 2 Plus package, in particular concerning reliance on pan-European providers of data services for air traffic control and stronger collaboration with the European air traffic Network Manager”. The EU co-legislator are called upon agreeing on the pending proposal on international markets for bus and coach services“.

Digitalization is viewed “as a performance element.” In the report, artificial intelligence and cybersecurity measures are considered the basis for incentivizing the uptake of connected and automated vehicles and technologies for the smart enforcement of road traffic rules.

Draghi mentions a range of support tools to foster innovation until market deployment, including the piloting and new generation of sustainable renewable and low-carbon fuels, including eSAF—Sustainable Aviation Fuel—produced from renewables.

As for the financial sector, the report’s author stresses schemes to de-risk and finance decarbonization solutions in hard-to-abate segments such as aviation, maritime, and heavy-duty vehicle transports.
To de-risk investment in sustainable, renewable, and low-carbon fuels, contracts for Difference scheme-based and auctions as a service similar to those designed for the Hydrogen Bank are proposed. Draghi also recommends ensuring continuity and expanding existing funding mechanisms under the Connecting Europe Facility program. He mentions the current Transport Alternative Fuels Infrastructure Facility (AFIF).

Pilot projects in eSAF could be the purpose of dedicated sectorial calls under the Innovation Fund. Draghi suggests launching specific calls for each decarbonization-oriented technology.

The text adds that if Europe wants to reach the target of autonomy in sustainable renewable and low-carbon fuels, international partnerships cannot be ignored. “The EU should advocate for a global emissions pricing mechanism and fuel and energy efficiency standards in the ICAO and IMO,” it further reads.

The report also sets possible objectives in the sector. As far as shipbuilding is concerned, Europe should commit itself to maintaining the current industrial status and regain leadership in ferries, energy transport, and research vessels. Global leadership in the production of floating technologies and in the supply of vessels for installing and maintaining offshore wind is also crucial.

Maintaining and boosting current leadership in aviation is a goal. The EU should walk right into autonomy in the engine supply chain.

The former Italian prime minister did not mention road transport objectives. The stress is limited to hard-to-abate transport segments of the EU to secure a certain degree of EU autonomy in the supply chain for sustainable renewable and low-carbon fuels.