The European Commission has once again demonstrated its commitment to transforming the transport infrastructure across the European Union (EU) by opening a new €2.5 billion call for proposals under the Connecting Europe Facility (CEF) programme. This ambitious funding initiative aims to modernize transport networks with a clear focus on sustainability, smart transport solutions, and resilience to natural disasters. With the ongoing geopolitical challenges in Europe, part of the funding will also target infrastructure development in Ukraine and Moldova, underscoring the EU’s broader commitment to regional stability and connectivity.

As climate change, technological advancements, and economic pressures continue to shape the future of transport, the CEF programme offers a pathway to reimagining how Europe’s infrastructure can adapt to these changes. By promoting projects that reduce carbon emissions, enhance the safety and efficiency of transportation, and build resilience against environmental disasters, the European Commission is setting the stage for a future where mobility is more sustainable, intelligent, and inclusive.

This blog post delves into the details of the new CEF funding call, exploring its objectives, the areas it prioritizes, and the broader implications for European transport infrastructure and the logistics industry.

What is the Connecting Europe Facility (CEF)?

The Connecting Europe Facility (CEF) is the EU's flagship funding programme designed to promote growth, jobs, and competitiveness through targeted infrastructure investments. Launched in 2014, CEF plays a crucial role in developing efficient, sustainable, and interconnected trans-European transport, energy, and digital networks.

In the transport sector, CEF provides financial support for the construction and modernization of projects that enhance the seamless movement of goods and people across borders. It focuses on the Trans-European Transport Network (TEN-T), which connects major cities, ports, and industrial centers through road, rail, maritime, and air transport networks.

With sustainability and smart transport solutions becoming more central to EU policy, CEF has evolved to prioritize projects that reduce greenhouse gas emissions, embrace digitalization, and build resilience to natural disasters.

The €2.5 Billion Call for Proposals: Key Areas of Focus

The latest €2.5 billion call for proposals under the CEF programme aims to address several critical areas that align with the EU’s long-term goals for transport modernization. Let’s take a closer look at the key areas of focus for this funding round:

1. Sustainability and Green Transport

At the core of the CEF programme is the commitment to making European transport infrastructure more sustainable. With the European Green Deal setting ambitious targets for reducing greenhouse gas emissions by 55% by 2030, the CEF funding supports projects that align with this agenda.

This includes promoting low-emission and zero-emission transport options, such as electrifying rail networks, improving intermodal transport systems, and encouraging the adoption of alternative fuels like hydrogen and electricity for road and maritime transport.

By prioritizing sustainable transport solutions, the EU is working to significantly reduce the environmental footprint of its transport sector, which accounts for nearly 25% of the EU’s total carbon emissions.

2. Smart Transport Systems and Digitalization

As part of the digital transformation agenda, CEF funding is increasingly focused on developing smart transport systems that leverage cutting-edge technologies like artificial intelligence (AI), the Internet of Things (IoT), and big data to improve transport efficiency and safety. These innovations help optimize traffic flow, enhance the management of freight and logistics operations, and reduce energy consumption.

Smart transport solutions also include upgrading the infrastructure required for the widespread adoption of connected and autonomous vehicles (CAVs), as well as ensuring seamless communication between vehicles, infrastructure, and transport management systems. The integration of digital tools into transport infrastructure is crucial to creating a future where traffic congestion is reduced, safety is improved, and fuel consumption is optimized.

3. Resilience to Natural Disasters and Climate Change

The increasing frequency and severity of natural disasters across Europe, such as floods, storms, and wildfires, have highlighted the need for resilient transport infrastructure that can withstand extreme weather conditions. The new CEF funding call places particular emphasis on projects that enhance the ability of transport networks to cope with climate change-related challenges.

This includes projects focused on flood protection for critical infrastructure, improving drainage systems, and reinforcing vulnerable bridges and tunnels. By investing in resilient transport infrastructure, the EU aims to minimize the disruptions caused by natural disasters, ensuring that the flow of goods and people remains uninterrupted, even in the face of adverse environmental conditions.

4. Supporting Ukraine and Moldova: Enhancing Regional Connectivity

The geopolitical challenges posed by Russia’s invasion of Ukraine have underscored the importance of improving infrastructure connectivity in Eastern Europe. The EU’s latest CEF funding call extends support to infrastructure projects in Ukraine and Moldova, helping these countries integrate more closely with the EU’s transport networks.

For Ukraine, which has faced significant infrastructure damage as a result of the ongoing conflict, EU support through CEF is crucial in rebuilding and modernizing critical transport links. This includes the reconstruction of railways, bridges, and highways that are vital for the movement of goods and humanitarian aid.

Moldova, a landlocked country with limited access to international markets, also stands to benefit from enhanced transport links that connect it to the broader European network. By improving infrastructure in these regions, the EU not only promotes economic recovery and growth but also strengthens its strategic ties with Eastern European neighbors.

Benefits for the Logistics Sector

The CEF funding programme holds several key benefits for the logistics sector, particularly in terms of improving the efficiency and sustainability of supply chains across Europe.

1. Improved Infrastructure for Freight Transport

Logistics companies stand to benefit from the modernization of freight transport infrastructure, especially as the focus shifts toward sustainability and smart solutions. Projects that improve rail freight corridors, upgrade intermodal hubs, and enhance the connectivity of ports and airports will contribute to faster, more reliable freight movements across the continent.

This is particularly important for sectors like e-commerce, manufacturing, and retail, where the speed and efficiency of logistics operations are critical to meeting customer demands. By reducing bottlenecks and enhancing cross-border connectivity, CEF projects will help logistics companies optimize their operations and reduce delays.

2. Reducing the Carbon Footprint of Logistics Operations

With the EU pushing for more sustainable transport solutions, logistics companies will have greater access to low-emission transport options. The expansion of rail freight, investments in electric vehicle (EV) charging infrastructure, and support for alternative fuels will allow logistics providers to reduce their carbon emissions and comply with stricter environmental regulations.

For businesses looking to enhance their sustainability credentials, the CEF programme provides an opportunity to transition toward greener logistics operations, thereby meeting the growing demand for environmentally responsible supply chains.

3. Increased Resilience of Supply Chains

Natural disasters pose a significant risk to supply chains, with disruptions to transport infrastructure often leading to costly delays. By investing in resilient infrastructure that can withstand climate-related shocks, the CEF funding programme helps safeguard supply chains against future disruptions.

This will be particularly beneficial for industries that rely on just-in-time delivery models or operate in regions prone to environmental hazards. By minimizing the risk of infrastructure failures, logistics providers can maintain continuity in their operations, even in challenging conditions.

Challenges and Considerations for Applicants

While the €2.5 billion CEF funding call presents a significant opportunity, potential applicants must navigate several challenges to secure funding for their projects.

1. Stringent Environmental and Sustainability Criteria

Given the EU’s commitment to achieving its climate goals, projects applying for CEF funding must meet stringent environmental and sustainability criteria. This requires careful planning and a clear demonstration of how the proposed infrastructure improvements will contribute to reducing carbon emissions, enhancing energy efficiency, and supporting the broader goals of the European Green Deal.

2. Cross-Border Collaboration

Many CEF-funded projects require collaboration between multiple EU member states, particularly for cross-border transport corridors. This adds a layer of complexity to project management, as stakeholders from different countries must coordinate their efforts to ensure seamless implementation.

Applicants will need to demonstrate strong partnerships and the ability to work across borders to address shared infrastructure challenges.

Conclusion

The European Commission’s new €2.5 billion CEF funding call represents a major investment in the future of transport infrastructure across Europe. By prioritizing sustainability, smart transport, and resilience to natural disasters, the CEF programme is helping to modernize Europe’s transport networks for a greener, more connected future.

For logistics companies, these developments offer significant opportunities to improve efficiency, reduce emissions, and strengthen the resilience of supply chains. As the EU continues to invest in modern infrastructure, the long-term benefits for both businesses and the environment are clear.