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GBTA Meeting with Magda Kopczyńska, Director General of DG Move, on multimodal travel
On February 6, 2024, Fulvio Origo, regional lead for GBTA Italy attended a meeting in Brussels on behalf of GBTA Europe with Magda Kopczyńska, the European Commission’s top official overseeing EU transport policy. Together with a group of stakeholders in the travel sector, they discussed the Commission's plans to incentivise multimodal travel through a legislative proposal called the Multimodal Digital Mobility Services (MDMS) regulation. GBTA has strongly supported the concept of this proposal as it would make it much easier for business travellers to choose sustainable travel options by making multimodal tickets more accessible through convenient online booking channels. The proposal, set to be presented last
year, has however been postponed without a clear timeline for its introduction.
Ms. Kopczyńska explained that the Commission still intends to go ahead with the proposal but suggested that it would not be published before the European Parliament election in June. She added that the Commission is evaluating the proper balance between market needs and regulations, and the market’s ability to find the right balance. Ms. Kopczyńska said that they need more data on whether passengers are willing to choose multimodal options. Fulvio referred to business travel’s market volumes, to corporate and business travelers' needs during the selection, the booking, the on-trip, and reporting process, and to GBTA’s State of Climate Action in Business Travel report. He conveyed that businesses are already
encouraging or mandating the use of more sustainable travel options such as rail and argued that MDMS would facilitate a further shift in this direction.
GBTA will coordinate with its partners in the “Friends of MDMS” coalition to ensure the Commission receives the appropriate data to back up the need for a strong legislative proposal to incentivise multimodal travel in Europe and will meet again with Ms. Kopczyńska later this year.
Why it matters: An EU law to facilitate the booking of multimodal trips would make it easier for business travellers to combine different modes of transport, making business travel more sustainable and efficient.
Key Points
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➤ Latest news on Net-Zero Industry Act (NZIA)
What is new: On the 6th of February 2024, the EU Council and European Parliament reached a preliminary agreement on the Net-Zero Industry Act (NZIA), which aims to bolster Europe's green industries to meet the EU’s climate goals and enhance Europe's leadership in green industrial technologies. Key provisions include a single list of net- zero technologies that will be supported (including sustainable aviation fuels), streamlined permit procedures for strategic projects, initiatives to enhance workforce skills, and platforms to coordinate EU action. The agreement also sets benchmarks for production targets and CO2 capture. Additionally, it introduces measures such as fast- track permits,
creation of net-zero industrial valleys, and guidelines for public procurement.
The aviation industry celebrated the inclusion of SAF in the Act, allowing more incentives to produce less-polluting alternatives to kerosene. “The inclusion of SAF in the NZIA is all the more timely following the release of the EU’s recommendation to update the 2040 climate targets this week,” they added, noting the new target “expressly recognised the need to address barriers to SAF deployment at scale, giving the aviation sector priority access to feedstocks, and putting incentives in place to close the price gap between SAF and conventional kerosene.”
Why it matters: The production of sustainable aviation fuels should be ramped up thanks to the advantages that the NZIA will grant to companies producing it. This in turn will help airlines achieve the goals for SAF usage established by the EU under the ReFuelEU regulation and likely reduce the high price of SAF. In short, it will benefit GBTA’s members as more flights using SAF will be available, making business travel more sustainable.
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➤ EU agreement on postponement of sustainability reporting (CSRD)
The Council and European Parliament agreed to delay the adoption of sustainability reporting standards for the mining, oil and gas sectors and for third-country companies by two years. This provisional deal pushes the adoption date to June 2026, providing companies with more time to implement the European Sustainability Reporting Standards (ESRS) and prepare for sector-specific standards. The agreement supports the objectives of the Commission's proposal but modifies the legal nature of the text and allows the Commission to publish sector-specific reporting standards as they become available before the new deadline.
Why it matters: The delay will give more time to the companies affected to prepare to comply with the reporting requirements.
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➤ Vote on Corporate Sustainability Due Diligence Directive (CSDDD) delayed
The Belgian presidency of the EU Council has once more delayed a crucial vote on new regulations for business supply chain oversight, casting doubt on its passage this legislative term. The vote, originally set for Wednesday, has been postponed for the second time, with Germany's Free Democratic Party advocating against the rules.
Germany's coalition deadlock led to signals of abstention, prompting the postponement. This delay suggests insufficient support for the proposal. Negotiators reached a deal in December, but final approval from member states and EU lawmakers is pending. Time constraints loom, with the European Parliament election approaching in June. Additionally, a vote in the European Parliament's legal affairs committee has been postponed pending a decision from member states.
Why it matters: The unexpected delay makes it unlikely that the new Directive will be approved before the election, pushing the deadline for compliance with its requirements further into the future.
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➤ European Commissions announces 2040 climate target
On 6 February 2024, the Commission released a Communication that initiated the groundwork for formulating its 2040 emission reduction target. Based on the assessment, the Commission suggests pursuing a 90% reduction in net greenhouse gas emissions by 2040 compared to 1990 levels, ahead of the 100% objective in 2050. Additionally, the Commission has published an in-depth impact assessment outlining potential routes to achieve climate neutrality by 2050. This assessment will serve as a crucial resource in shaping the ongoing debate and influencing forthcoming legislative and policy decisions.
For the transport sector specifically, the goal is to reduce emissions by close to 80% by 2040. The Commission plans to achieve this via electrification and a combination of technological solutions, carbon pricing and an efficient and interconnected multimodal transport system, for both passengers and freight. The proposal also mentions the need for investments in the transport sector, particularly in the shift towards the production of more sustainable alternative fuels.
Why it matters: The plan reiterates the EU’s commitment to work towards the decarbonisation of the transport sector through measures including multimodality and SAF production, in line with GBTA’s priorities. While the legislation to achieve these 2040 objectives will be introduced by the next Commission, the target shows the direction of travel in the EU for decades to come.
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➤ Updates on the Green Claims and Empowering Consumers Initiatives
Green claims
The European Commission presented in March 2023 the Green Claims Directive, which establishes rules to ensure that businesses making environmental claims about their products provide clear, science-based evidence to back these up. When businesses compare their products to others, the comparisons will have to be fair and based on the same kind of data. The rules also aim to control the number and quality of environmental labels; only those that meet strict standards will be allowed.
The Parliament’s committees on the Environment (ENVI) and the Internal Market (IMCO) have suggested amendments to the Directive, demanding the following.
- Explicit environmental claims on “neutral, reduced or positive” environmental impact for a product based on the use of carbon credits should be banned.
- However, companies can still use “climate-related compensation and emission reduction claims” based on carbon credits but only for residual emissions in accordance with the EU carbon removal certification framework (CRCF). Carbon credits other than those certified under the CRCF can be used in duly justified cases where those schemes are recognised by the Commission as part of the list of compliant schemes corresponding to equivalent requirements to those provided by the CRCF. The Commission shall adopt delegated acts to list recognised carbon credit schemes.
In contrast with the Parliament, the EU Council, representing Member States, has not yet agreed on its position on this file. When they do, they will initiate negotiations with the Parliament to agree on a final version of the legislation, but the process is not expected to be finalised before the June EU election given the little time left.
Why it matters: The most relevant issue for business travellers in this proposed Directive is the way it will regulate claims based on carbon offsetting. Companies are allowed to buy carbon credits, but they cannot make claims that their products have a neutral, reduced, or positive environmental impact based on this. They can, however, communicate about the climate-related compensation and emission reduction from these carbon credits but only for residual emissions, that is, for emissions that cannot be eliminated.
Empowering Consumers for the Green Transition Directive
In March 2023, together with the Directive on Green Claims, the Commission presented a Directive on empowering consumers in the green transition, aimed at complementing and operationalising the former. It is set to bolster consumer rights by introducing requirements for disclosure regarding product durability and reparability.
Overall, the law seeks to enhance legal certainty for traders, facilitate enforcement against greenwashing and premature obsolescence, and empower consumers to choose products based on genuine environmental performance. The directive will impose bans on various misleading claims, such as very general claims (“climate neutral”, “environmentally friendly”), and those suggesting a product has neutral, reduced, or positive environmental impact based on carbon offsetting. To avoid the proliferation of unreliable labels, the directive only allows sustainability labels based on official certification schemes or established by public authorities.
Why it matters: This Directive will impact companies that make very broad environmental claims or those that claim that their products have neutral, reduced, or positive environmental impact based on carbon offsetting, including in the travel sector.
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➤ Payment Services Regulation
In June 2023, the European Commission presented a proposed Payment Services Regulation, that will update the EU’s payment legislation to make it fit for the digital age. It will also tighten the security measures surrounding Merchant Initiated Transactions (MITs) and Mail Order or Telephone Orders (MOTOs). Most of the transactions in the business travel sector are processed as Mail Order and Telephone (MOTO) even if they are not initiated by mail or telephone, owing to a loophole in the previous Payment Services Directive 2. The new Payment Services Regulation may close this loophole. The new proposal does not require a “Strong Customer Authentication” in mail orders irrespective of whether the execution of the transaction is performed electronically, but only as long as “security requirements and checks are carried out by the payment service provider of the payer
allowing a form of authentication of the payment transaction”.
After its presentation, the proposed PSR was sent to the European Parliament and the Council of the EU, representing Member States. The Parliament’s Committee on Economic Affairs (ECON) adopted its position on it on 14 February 2024 and proposed amendments to add that national competent authorities will define the possible forms of alternative authentication that replace SCA in MOTOs.
Why it matters: The PSR is not expected to be adopted before the EU election in June 2024, but its future approval could affect the business travel sector. With the new requirements, regulators could notice the incorrect use of MOTO by the business travel industry and may decide to close the loophole, with consequences for the whole sector. The sector should adapt before the legal changes have negative consequences for its customers.
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➤ European Elections
The European Parliament election scheduled for June 6-9, 2024, will shape the EU's political course for the next five years. Ahead of this significant vote, here's the latest news shaping what could be a defining moment for the bloc.
What is new: The European Greens officially adopted their manifesto on the 4 February 2024. In it, they push for bolder climate action in Europe despite a growing backlash. For the transport sector, they ask for massive investment in and coordination of rail transport to connect Europe, with particular emphasis in underserved regions. They call for the promotion of sustainable long-distance travel, by investing in night train infrastructure and creating a European Ticketing Platform to make booking cross-border journeys on sustainable transport straightforward. They would also “tax air travel and fuel properly where efficient climate-friendly alternatives cannot be put in place”, introduce a frequent flyer levy, with exceptions for island regions, and ban short-haul where alternatives are available and a ban on private jets. However, the Greens are
facing growing “green fatigue” across Europe, with recent farmers’ protests highlighting many citizens’ concerns about strict climate regulations. The polls predict a loss of a third of their seats and the group going from the fifth to the seventh largest in the European Parliament, this would leave them with little influence in the legislative process. Further analysis here.
Why it matters: Even though the Greens are predicted to take losses in the European Parliament election in June, they could still have some influence in shaping the EU agenda during the mandate 2024-2029. Their proposals for the transport sector may be taken up to some extent by the next European Commission.
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