This Week in Automotive — Brussels (#24, 2026)
UN Regulation 154 for EVs published; EU strengthens FDI screening (Reg. 2026/1386); tripartite agreement for energy storage; Environment Council reviews CO2 standards.
June 21, 2026 to June 27, 2026
UN Regulation 154 for EVs published; EU strengthens FDI screening (Reg. 2026/1386); tripartite agreement for energy storage; Environment Council reviews CO2 standards.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
European Commission
First-ever EU tripartite agreement signed to accelerate energy storage deployment
On 25 June, the European Commission coordinated the signing of the inaugural EU tripartite agreement on energy storage, involving 22 Member States, the energy sector, and financial institutions. The arrangement targets the creation of 30-35 GW of new storage capacity over two years to reinforce electricity system flexibility and security, supporting the integration of renewable energy. Developers of storage projects will issue yearly capacity estimates, while Member States committed to regulatory simplification and targeted funding aligned with State aid rules, including the Clean Industrial State Aid Framework (CISAF). Financial institutions will evaluate projects for investor appeal and funding impact, supported by the European Investment Bank and Industrial Decarbonisation Bank. The Commission will monitor progress annually through 2028 and facilitate exchanges via the Energy Union Task Force. The Council’s March 2026 conclusions had previously called for accelerated energy storage and renewables deployment.
Commission simplifies energy and tyre labelling requirements for vehicle dealers and manufacturers
On 23 June, the European Commission announced measures to simplify compliance for energy and tyre labelling. Under the proposals, vehicle dealers will no longer be required to display tyre labels when selling new cars, resulting in estimated annual administrative savings of €40 million. Tyre information will be integrated with vehicle emission and autonomy data. The simplification also provides flexibility in format, such as QR codes or electronic displays, for products not sold in physical shops. Enhanced use of the European Product Registry for Energy Labelling (EPREL) aims to boost market surveillance and consumer access to detailed product information. The revised rules are expected to lower industry and enforcement costs by €125 million over 10 years. The Commission cited studies confirming the effectiveness of labelling policies for consumer choices and energy efficiency, while acknowledging continued challenges in compliance, particularly for online sales.
EU Legislation (Official Journal)
Regulation (EU) 2026/1386 introduces harmonised screening of foreign investments in sensitive automotive/electric sectors
Regulation (EU) 2026/1386, adopted on 17 June 2026 and published on 26 June, mandates Member States to harmonise screening mechanisms for foreign investments affecting strategic sectors. The automotive industry is included via the coverage of semiconductor, battery, and AI technologies, as well as critical infrastructure and raw materials outlined in Section I of Regulation (EU) 2024/1252. The Regulation imposes upfront review for investments targeting entities in these domains, introduces a cooperation mechanism between national authorities and the Commission, and sets deadlines for review and reporting. It takes effect for filings from 17 January 2028, with preparatory provisions entering force from 16 July 2026.
UN Regulation No. 154 (WLTP) published: new approval criteria for electric vehicle emissions and efficiency
UN Regulation No. 154 was published in the Official Journal on 26 June 2026. The regulation details uniform approval processes for light duty passenger and commercial vehicles, covering criteria emissions, CO2 emissions, fuel consumption, as well as measurement of electric energy consumption and range using the Worldwide Harmonized Light Vehicles Test Procedure (WLTP). The standard is relevant for European manufacturers developing electric and hybrid vehicles.
Council Decision (EU) 2026/1411 confirms Union vote for June 2026 UN vehicle regulations
Council Decision (EU) 2026/1411, dated 22 June 2026, sets the EU position for the 199th session of the UN World Forum for Harmonization of Vehicle Regulations (UNECE WP.29). The Union will vote in favour of several proposals, including new regulations on liquid hydrogen, automated driving systems, tyre abrasion, and amendments to multiple UN regulations affecting vehicle standards and environmental compliance.
EU Council
Environment Council discusses CO2 emission standards for cars and vans, nature as economic asset, water resilience, and REACH
On 25 June, Environment ministers considered progress on amending CO2 emission standards for passenger cars and vans, strategies for recognising nature as an economic asset, and approaches to water resilience and the REACH chemicals regulation.
EP Committee Work
ENVI public hearing reviews legislative framework and business-policy engagement for circular economy
The ENVI Committee held a public hearing titled 'Less waste, more value: Towards an EU Circular Economy Act' on 23 June, with inputs from experts such as Janez Potocnik (International Resource Panel, UNEP) and Carsten Wachholz (Ellen MacArthur Foundation). Panel discussions focused on legislative lessons, innovative approaches, and implementation challenges, with further remarks by the Commission. This debate is relevant for automotive value chains, materials management, and sustainable manufacturing policies.
ITRE Committee backs new measures to secure critical raw materials supply for EV batteries and automotive value chains
On 24 June, the Industry, Research and Energy Committee approved amendments to the Critical Raw Materials Act. The revised draft introduces price-stabilisation mechanisms (e.g. Contracts for Difference), a conditional export control clause for permanent-magnet waste, and clarified responsibilities for companies using strategic raw materials. The Commission will identify large users and provide guidance for risk assessment. The regulation seeks to reinforce extraction, processing, and recycling capacities in sectors including automotive and batteries.
ENVI Committee ordinary meeting: consideration of draft reports on waste, packaging and battery regulations
The Committee on Environment, Climate and Food Safety (ENVI) met on 22 June to assess draft reports on extended producer responsibility for waste, packaging, and batteries. Lead rapporteur Ingeborg Ter Laak (PPE) outlined amending proposals for application suspensions and procedural simplifications, with deadlines for amendments set for July. These discussions impact compliance management for automotive manufacturers and importers.
ITRE Committee draft opinion on simplification of technical requirements and testing for motor vehicles
ITRE Committee published a draft opinion on 22 June regarding the regulation amending Regulations (EC) No 561/2006, (EU) 2018/858, (EU) 2019/2144, and (EU) 2024/1257, focused on technical requirements and testing simplification for motor vehicles. Rapporteur Giorgio Gori submitted proposals addressing the repeal of Directive 70/157/EEC and Regulation No 540/2014, which are relevant for conformity assessment in automotive manufacturing.
