The European Union member states are starting to implement the European Commissions updated “Eurovignette Directive” that entered into force in March 2022. The update includes a framework for reducing CO2 emissions, aiming to decrease the carbon footprint of road transportation in line with the European Green Deal and the Paris Agreement. As member states are starting to implement the updated directive, we are taking a closer look at the steps member states are taking and how they affect freight transport across Europe.

Key Objective of EU Directive: Climate Change Mitigation
The updated directive calls for climate change mitigation. Its key objectives, briefly summarized, are:

• Phasing out time-based fees (“vignettes”) for heavy and light goods vehicles
• Mandatory fee for external costs of heavy goods vehicles on transit routes
• Pricing differentiation based on vehicle’s CO2 emissions
• Fees collection to tackle congestion issues

Along these objectives of the updated directive, member states are given tools with which they can design or update their road charging solutions for the purpose of infrastructure financing and climate change mitigation. The update also supports the “polluter pays” principle. By 25 March 2024, road charging rates must be differentiated Europe-wide according to the vehicles’ CO2 emission class.

Transit Country Germany Increases Road Tolls to Maximum
Germany—the largest European Union member state and, due to size and central location, the number one transit country in the Union—takes the lead by updating its current road charging policy. Germany plans to increase road charging rates based on emissions to the maximum extent the EU Directive allows for, starting 1 December 2023. The CO2 surcharge amounts to 200 euros per emitted ton of CO2. Austria, among many other countries with a national tolling system for heavy goods vehicles, is planning slower increases.

Toll charges have doubled with the surcharge and the generated income will be used to co-finance rail and road infrastructure. Currently, the discussions among stakeholders along the value chain are heated – who will carry the cost? The producers, the logistics companies, or the consumer?

A different scenario presents itself to member states where major transit routes are operated by concessionaries and member states that still employ time-based vignettes. Broadly speaking, their timelines allow for more leniency. Many of the countries with a time-based vignette system are currently undergoing or considering a system change – Denmark, the Netherlands, Lithuania, and countries with concessionaries in place have time to consider next steps when road concession agreements are coming to an end or will be revised.

Make the Switch to Rail; Go Green with GATX
With all this uncertainty and toll prices rising across Europe, now is the time to make a switch to rail. At GATX, we maintain a dynamic role in rail related regulatory bodies, pursue railcar technology development, and rally for rail infrastructure improvement to welcome transport mode switchers. “We are ready to support organizations that want to go green and make the switch to rail,” says Jörg Nowaczyk, CCO of GATX Rail Europe. “Rail remains the most environmentally friendly transport mode. We don’t need emission classes for rail for transport pricing—rail is green, whether you transport one container or thousands.” The upcoming changes in European road transport present an opportunity for all companies transporting goods to evaluate their circular economy and to switch their transports to intermodal or rail transports. “It will certainly make an impact and set an example, so contact us,” concludes Jörg.

Our GATX teams are ready to support the switch. With our fleet of almost 30,000 railcars, GATX Rail Europe’s teams can select the right railcar for your transport needs with you – for A to B transfers as well as for intermodal transports, our teams guide you in finding the right solution. To learn more about how to make the switch visit our website or send us a support request.