This Week in Automotive — Brussels (#25, 2026)
New benchmarks for EU ETS free allocation; Spanish state aid for road transport approved; Denmark completes RRF plan; UN Regulation on vehicle VRU detection enters into force; ENVI and ITRE reports on permitting and decarbonisation.
June 28, 2026 to July 04, 2026
New benchmarks for EU ETS free allocation; Spanish state aid for road transport approved; Denmark completes RRF plan; UN Regulation on vehicle VRU detection enters into force; ENVI and ITRE reports on permitting and decarbonisation.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
European Commission
Commission approves €402 million Spanish State aid for road transport companies facing increased fuel prices
On 28 June 2026, the European Commission approved a €402 million Spanish State aid scheme to support road transport companies affected by increased fuel prices linked to the Middle East crisis. The measure was authorised under the Middle East Crisis Temporary State Aid Framework (METSAF), adopted by the Commission on 29 April 2026, and will be in force until 31 December 2026. Under the scheme, eligible beneficiaries may claim direct grants to cover up to 70% of additional fuel costs for the period 1 March–31 December 2026, with alternative caps for companies outside the existing diesel tax refund scheme. The Commission found the measure compatible with Article 107(3)(c) TFEU and the METSAF, as the aid is proportionate and necessary to support economic activity in the transport sector without distorting competition. Spain’s notification was registered under case number SA.122730.
Commission greenlights Denmark's final payment request of €359 million under NextGenerationEU
On 29 June 2026, the Commission approved Denmark's fifth and final payment request for €359 million in grants under the Recovery and Resilience Facility (RRF), bringing total disbursements for Denmark to €1.63 billion. Denmark becomes the first Member State to fully complete all milestones and targets under its national RRF plan ahead of the end of August deadline. Supported activities include the green transition of agriculture, energy efficiency, digitalisation, and sustainable road transport, with a shift of over 250,000 zero-emission cars on Danish roads and thousands of homes upgraded for energy efficiency. The payment will be made after approval from the Economic and Financial Committee and a Commission decision.
EU Legislation (Official Journal)
Commission Implementing Regulation (EU) 2026/1412 – revised benchmark values for free allocation of ETS allowances for 2026–2030
Commission Implementing Regulation (EU) 2026/1412 of 26 June 2026 sets the revised benchmark values for free allocation of emission allowances under Directive 2003/87/EC (EU ETS) for the period 2026–2030. The review draws on data submitted for 2021–2022 and aligns reduction rates with the EU's 2030 climate targets. Benchmarks are determined for 54 sectors, reflecting updated methodologies, indirect emission inclusion, and changes introduced by Directive (EU) 2023/959 and Delegated Regulation (EU) 2024/873.
UN Regulation No. 166 – Approval of devices and vehicles for VRU awareness in close proximity [2026/1365]
UN Regulation No. 166, which entered into force on 12 June 2025 and was published in the EU Official Journal on 29 June 2026, sets uniform provisions for the approval of devices and motor vehicles concerning driver awareness of vulnerable road users near the front and lateral sides. The regulation outlines technical requirements for mirrors, cameras, detection systems, and activation procedures intended for vehicles of categories M1 and N1.
EU Council
Upcoming: Informal meeting of competitiveness ministers (Internal market and industry), Competitiveness Council on 9 July 2026
Competitiveness ministers will hold an informal meeting on 9 July 2026 to discuss issues related to the internal market and industry, including the functioning of the automotive and road transport sectors.
EP Committee Work
ITRE REPORT: Acceleration of permit-granting procedures for energy infrastructure
On 3 July 2026, the Committee on Industry, Research and Energy (ITRE) adopted a report on the proposal to amend Directives (EU) 2018/2001, 2019/944, and 2024/1788 for the acceleration of permit-granting procedures. Rapporteur Niels Fuglsang (S&D, Denmark) led the preparation of the report, which seeks to streamline permitting for projects including those in the road transport sector, in order to improve deployment of infrastructure such as recharging stations and grid connections.
ITRE OPINION: Proposal for a regulation establishing the Temporary Decarbonisation Fund
The ITRE committee issued an opinion on 3 July 2026 concerning the proposal to establish a Temporary Decarbonisation Fund, with rapporteur Massimiliano Salini. The opinion addresses funding mechanisms to support the decarbonisation of industry, energy, and transport sectors, focusing on facilitating the transition in line with EU climate objectives.
ENVI: Ordinary meeting on environment and climate
The Committee on Environment, Public Health and Food Safety (ENVI) met in Brussels on 2 July 2026 to discuss legislative developments and ongoing issues relating to environment and health. The agenda included topics relevant to the automotive sector, such as air quality and greenhouse gas reduction measures.
