Executive summary sheet

Impact assessment on the proposal for a revision of Directive 2010/40/EU of the European Parliament and of the Council on the framework for the deployment of Intelligent Transport Systems (ITS) in the field of road transport and for interfaces with other modes of transport

A. Need for action

Why? What is the problem being addressed? Maximum 11 lines

This impact assessment is the basis for a legislative proposal to revise Directive 2010/40/EU on the framework for the deployment of ITS. It is a key action of the European Green Deal, the sustainable and smart mobility strategy, and making Europe fit for the digital age. The ITS Directive aims to increase the deployment and use of continuous ITS services across the EU to improve the functioning of the road transport system including its interfaces with other modes, and thus reduce the negative external effects of road transport. A 2019 evaluation confirms the relevance of the ITS Directive, but highlights that deployment of ITS remains slow and fragmented, arguing that this has led to missed opportunities to build an inclusive multimodal transport system. There is a need to include new developments in domains such as connected and automated mobility and mobility platforms. There is also a need to further improve, on the whole transport network, the accessibility and availability of: (i) infrastructure data; (ii) traffic data; and (iii) travel data.

What is this initiative expected to achieve? Maximum 8 lines

This initiative aims to increase the deployment and operational use of ITS services across the EU to: (i) improve road safety and the efficiency of transport; and (ii) foster a multimodal transport system. Its specific objectives are to increase interoperability and continuity of services (SO1), set up an effective coordination mechanism between all ITS stakeholders (SO2), and improve the availability and accessibility of data supporting ITS services (SO3). This contributes to the two key priorities for the transport system described in the sustainable and smart mobility strategy: greening and digitalising the EU transport sector. This will also help reduce accidents, achieve ‘Vision Zero - to reduce road deaths to almost zero by 2050’, and strengthen the internal market in fields such as cooperative, connected and automated mobility (CCAM).

What is the value added of action at the EU level? Maximum 7 lines 

CCAM and a seamless user experience along the European transport network for all transport users (ensured through continuity of interoperable ITS services across borders) are prerequisites to: (i) meet the European Green Deal’s goal on reducing transport greenhouse gas emissions; and (ii) develop a common EU transport market. Those objectives can only be reached by a common European legislative framework. The revision of the Directive will contribute to the coherent development and rollout of supporting infrastructure, ensuring interoperability of data and the provision of harmonised services to end-users.

B. Solutions

What legislative and non-legislative policy options have been considered? Is there a preferred choice or not? Why? Maximum 14 lines 

To adequately address the objectives of the ITS revision, three policy options (POs) have been assessed for their economic, social and environmental impacts. All options include: (i) strengthening the coordination and deployment principles; and (ii) expanding the ITS Directive operation in new and emerging ITS service areas (the basis of PO1). Additionally, stakeholder cooperation is institutionalised in all POs through measures to improve coordination and ensure the coherence of the Directive’s provisions with those of other existing legal instruments. PO2 also aims at mandating the availability and accessibility of crucial data. This represents a step change to improve data quality, data access, data exchange, and data use for the operation of ITS services. PO3 goes further by: (i) aiming to mandate the provision of essential ITS services, capitalising on the increased availability, quality, exchange and use of data in PO2, while (ii) aiming to further support the deployment of interoperable and continuous services, particularly those focused on road safety. PO3 is the preferred policy option, as it is the most ambitious and most effective option, best achieves the specific objectives of the ITS Directive, and best ensures the swift and coherent deployment of ITS services.

Who supports which option? Maximum 7 lines 

The results from the consultation activities show that stakeholders understand and support the opportunities and societal benefits offered by PO3. Public authorities embrace digitalisation and making transport smarter as a tool to improve sustainability and make a contribution by transport to the Green Deal objectives. Industry stakeholders require a return on investment in order to implement the services and systems envisioned under PO3. These industry stakeholders see business opportunities in emerging fields such as CCAM. Transport users welcome a safer and more inclusive mobility system.

C. Impacts of the preferred option

What are the benefits of the preferred option (if any, otherwise main ones)? Maximum 12 lines

PO3 brings significant benefits, notably in accident reduction (EUR 29.5 billion), time saved (EUR 144.5 billion), CO2 emissions (EUR 2.4 billion), other emission benefits (EUR 0.3 billion), fuel savings (EUR 2.4 billion) and GDP (EUR 17.3 billion) in the period 2021-2040 relative to the baseline. Total expected benefits are EUR 179.1 billion. There are unquantified costs related to: (i) updating and streamlining reporting obligations, mandating reporting in common format and KPIs; and (ii) measures to improve the coherence of the ITS Directive with existing frameworks and initiatives. These are expected to reduce the administrative costs of Member States and relevant stakeholders.

What are the costs of the preferred option (if any, otherwise main ones)? Maximum 12 lines

The costs of the preferred policy option are expected (between 2021-2040, relative to the baseline) to be in roadside units (EUR 1.1 billion), roadside infrastructure (EUR 3.3 billion), national access points (EUR 0.4 billion), central ITS subsystems (EUR 0.6 billion), and in-vehicle systems (EUR 15.4 billion). Administrative costs and costs for smartphones and applications are negligible. Total expected costs are EUR 20.8 billion. The benefit/cost ratio is estimated at 8.6.

How will businesses, SMEs and micro-enterprises be affected? Maximum 8 lines

SMEs are not a specific target of the policy measures and there is no indication that a differentiated impact can be expected for companies of different sizes. However, a fragmented market – as would have been the case without the introduction of new data specifications, new standard requirements, and the widespread use of national access points – may produce a comparative advantage for larger companies compared to SMEs. In a harmonised market with harmonised standards, SMEs will benefit from lower barriers to entry to expand their operations and compete on an equal basis with larger enterprises.

Will there be significant impacts on national budgets and administrations? Maximum 4 lines

Depending on implementation choices made in the Member States, the expected costs will largely need to be carried by public administrations for the investments in roadside infrastructure, national access points and central ITS subsystems. These add up to EUR 13.2 billion in total or EUR 5.3 billion above the baseline.

Will there be other significant impacts? Max 6 lines

The preferred option is expected to bring impacts on innovation, to be delivered through common data specifications and improved data availability and quality. Positive impacts on health are expected primarily as a result of reductions in air pollution. Impacts on employment are expected from the need to deploy infrastructure and collect data, while the accelerated deployment of ITS will benefit the internal market and the competitive position of businesses. Finally, people with reduced mobility will benefit from increased availability of multimodal transport information services.

D. Follow-up

When will the policy be reviewed? Maximum 4 lines 

Considering that ITS is a fast-moving sector, the Commission plans to report to EP and Council every 3 years on the implementation of the Directive and its delegated acts, taking into account the analysis of national reports on ITS deployment.