ARTICLE
17 December 2025

Horizon Scanner: Energy, Planning, Infrastructure And Construction December 2025 - Transport

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As part of the European Green Deal, the EU designed an "ETS2" to impose a cost of carbon on suppliers of fossil fuels used for buildings and road transport. The EPA is the national competent authority...
European Union Transport
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EU

Emissions Trading System 2

As part of the European Green Deal, the EU designed an "ETS2" to impose a cost of carbon on suppliers of fossil fuels used for buildings and road transport. The EPA is the national competent authority in Ireland. Monitoring and reporting requirements currently apply and the system was scheduled to become fully operational in 2027.

However, in the context of amendments being made to the European Climate Law, co-legislators have agreed that full operation of the ETS 2 should be postponed to 2028. To support a gradual and smooth launch of the ETS2, the Commission has also adopted a proposal to amend the Market Stability Reserve Decision as regards ETS2.

Alternative fuels infrastructure

Road vehicles

Transport Ministers adopted a Council position on amendments to Directive 96/53/EC on maximum authorised dimensions and weights for certain road vehicles. Proposed amendments include incentives for the road transport sector to invest in zero-emission technologies.

Ministers also adopted Council positions to update EU rules on inspections of vehicles and their registration. The "roadworthiness package" consists of two proposals to update three directives on periodic roadworthiness testing for motor vehicles; roadside inspections of commercial vehicles; and registration documents for vehicles.

The Council will negotiate with the Parliament to agree final texts. The Irish Minister's statement on the proposals is available here: Minister Canney welcomes key EU Transport agreements to advance road safety and support decarbonisation.

Rail

EU institutions have agreed a new Regulation to harmonise, simplify and rationalise the management of available capacity for trains on the EU's rail network, within and across Member States. Further information is available here: Council and Parliament agree on rules for a better management and increased use of Europe's railway infrastructure.

Defence

As mentioned in the Procurement p, the European Commission will present a proposed Regulation on military mobility to the Council and the European Parliament. The proposed Regulation lays down measures relating to dual-use equipment, means of transport and infrastructure to facilitate military transport in the EU and across its external borders. The proposal is part of a defence package which also comprises an EU defence industry transformation roadmap and a joint communication on military mobility.

Infringement procedures: energy efficiency and renewable energy

The European Commission opened infringement procedures by sending letters of formal notice to several States, including Ireland, for failure to transpose the amendments to Annex IX of the Renewable Energy Directive (EU) 2018/2001 made by Delegated Directive (EU) 2024/1405. Annex IX lists feedstocks mainly used to produce biogas and advanced biofuels (Part A), and other biofuels and biogas (Part B). Biofuels and biogas produced from feedstocks listed in Annex IX are used in the transport sector and promoted in the Directive because they have a better environmental effect than conventional biofuels (biofuels produced from food and feed crops). The Delegated Directive introduced new feedstocks to the list. Ireland has two months to respond and transpose the provisions.

Carbon report

The European Commission adopted the 2025 Carbon Market Report. It indicates that the EU Emissions Trading System continued to drive emission reductions in power and industry in 2024. However, emissions in the aviation sector increased in 2024 by around 15% above 2023 levels. Free allocation of carbon allowances to aircraft operators were phased down and the system started rewarding airlines for use of sustainable aviation fuels. Emissions from maritime transport were included in the EU ETS for the first time. Shipping companies surrendered allowances for more than 99% of their relevant surrendering requirements.

IRELAND

Accelerating infrastructure

The Accelerating Infrastructure Report and Action Plan was approved by the Cabinet. It addresses the transport sector through several actions intended to streamline and simplify the consenting of infrastructure projects. Specific actions include establishment of a new Joint Utilities and Transport Clearing House to enhance collaboration between utilities (action 21) and greater consideration of the use of internationally recognised forms of contract for transport projects (action 25).

Investment

The Government approved a €24.3 billion Sectoral Investment Plan for Transport 2026-2030. This includes €2 billion from the Infrastructure, Climate and Nature Fund to support MetroLink. The Government approved the establishment of a new dedicated MetroLink delivery body.

Heavy loads

It was reported in the Irish Times that officials are considering imposing limits of between 400 and 450 tonnes on Irish roads when transporting extra-heavy loads, and that permits are sought up to 12 months in advance.

Climate resilience

A Transport Sectoral Adaptation Plan (T-SAP II) sets out 40 actions to provide framework for building climate resilience across all transport modes in Ireland.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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