The International Association of Public Transport (UITP) has endorsed the principle of a European preference policy under the European Union’s emerging “Made in EU” agenda, while urging policymakers to adopt a gradual and pragmatic approach that does not hinder public transport decarbonisation efforts.
In a newly released position paper titled “Made in EU: The Vision of the Public Transport Sector,” UITP argues that measures designed to strengthen European industrial competitiveness should avoid creating additional costs, administrative burdens, or procurement barriers for public transport authorities (PTAs) and public transport operators (PTOs).
The document comes as European institutions continue discussions on the proposed Industrial Accelerator Act, unveiled by the European Commission in March 2026, which seeks to strengthen domestic manufacturing capabilities in strategic sectors including automotive, buses, and heavy-duty vehicles.
Support for European Industrial Capacity
UITP said it supports the broader objective of strengthening Europe’s industrial base and improving supply chain resilience through targeted European preference measures.
However, the association stressed that any future framework should be carefully designed to preserve operational efficiency, competition, and financial sustainability within the public transport sector.
According to the position paper, European preference requirements should not automatically apply to all procurement activities.
Concern Over Impact on Decarbonisation
A central theme of UITP’s position is the need to ensure that industrial policy does not undermine climate objectives.
The association warned that overly restrictive local-content requirements could slow the deployment of zero-emission public transport fleets, particularly in areas where European manufacturing capacity remains limited.
Balancing Industrial Policy and Climate Goals
UITP emphasized that procurement frameworks must support the transition to low-carbon mobility rather than create obstacles to it.
“The procurement framework must support, not hinder, the speed of decarbonisation of the public transport sector,” UITP stated in its position paper.
“A European preference should not lead to increased costs, reduced competition or administrative burden that would put at risk the decarbonisation targets, such as the transition to zero-emission fleets.”
The association noted that strict “Made in EU” requirements could delay access to certain low-carbon technologies and components, including battery technologies where European supply chains are still developing.
UITP therefore advocates maintaining procurement approaches that evaluate factors beyond price alone, including sustainability, innovation, lifecycle performance, and the Most Economically Advantageous Tender (MEAT) methodology.
Gradual Implementation and Flexible Thresholds
To improve supply chain resilience while avoiding market disruptions, UITP recommends introducing any European preference mechanism gradually.
The association argues that origin requirements should reflect actual market conditions and the availability of products from European suppliers rather than theoretical production capacity.
It also called for flexible derogation mechanisms that would allow transport authorities and operators to bypass European-origin requirements under specific circumstances.
These situations could include insufficient product availability, limited competition, procurement processes resulting in a single bidder, innovation constraints, excessive costs, or broader market shortages.
Focus on Genuine European Value Creation
UITP also argues that European preference rules should prioritize genuine value creation within the European Union and European Economic Area.
According to the association, final assembly alone should not automatically qualify a product as European if key activities such as research, development, engineering, and manufacturing occur elsewhere.
Instead, policymakers should recognize investments, innovation activities, and employment generated within Europe when assessing compliance with future “Made in EU” requirements.
Simplified Compliance Needed
The association further warned against introducing complex compliance procedures that would require transport authorities and operators to conduct extensive supply chain investigations.
UITP said many public transport organizations lack the resources to verify product origin independently and called for simplified certification systems and third-party verification mechanisms.
The group also stressed the importance of maintaining fair competition between public and private buyers, noting that additional procurement obligations should not place publicly funded transport operators at a disadvantage.
Strategic Assets Should Be Prioritized
While supporting European preference in principle, UITP opposes a blanket mandatory approach across all public procurement activities.
Instead, the association believes any mandatory rules should be limited to genuinely strategic sectors where sovereignty, security, or service continuity are at stake.
Examples cited include digital systems, energy infrastructure, and critical transport assets.
Outside these areas, UITP argues that contracting authorities should retain discretion in selecting procurement criteria that best meet operational and public service requirements.
The position paper concludes by calling for a “pragmatic, gradual and targeted” implementation of European preference measures that strengthens industrial competitiveness while preserving the public transport sector’s ability to deliver affordable, efficient, and sustainable mobility services across Europe.