The Commission has made an important step towards a Renewable Liquid Fuels Strategy for Europe

Posted on 01/02/2021 in Press Release

Since the launch of its Clean Fuels for All pathway in June 2020, FuelsEurope has called for a high-level multi-stakeholder dialogue to design the required policy framework. The EU needs a renewable liquid fuels strategy. FuelsEurope welcomes the Commission’s intention to create a Renewable and Low Carbon Fuels Value Chain Alliance, a constructive step towards a robust renewable liquid fuels strategy in the EU.

FuelsEurope warmly welcomes the communication of the Sustainable and Smart Mobility Strategy from the Commission and in particular the proposal to create this Renewable and Low-Carbon Fuels Value Chain alliance.

John Cooper, Director General of FuelsEurope stated “as part of our Clean Fuels for All strategy for our industry, published in June 2020 and setting an ambitious pathway for growing the production of fully renewable and recycled carbon fuels, we have developed the clear view that Europe needs a renewable liquid fuels strategy.” He added, “in fact, we have good reasons to believe that liquid renewable energy will have a long term, enduring role, not just as transitional fuels.”

The share of liquid energy in each sector may evolve over time alongside the evolution of electrification, hydrogen, energy efficiency, the digital, smart, and connected technologies, and the very way that we use transport and mobility. However, the ability to use existing distribution and storage infrastructure and the ready interchangeability of liquid fuels across different uses means that a liquid energy strategy is a cost-efficient no-regret choice for the long term.

While the deployment of electrification in light-duty road transport is swiftly progressing, renewable and low-carbon liquid fuels represent a strategic and complementary solution. The growing availability of these fuels will be key in decarbonising the existing vehicle fleet, without the need to wait for its complete turnover. Moreover, the business case for investments in renewable fuels is more robust when the market is the combination of road, aviation, and maritime transport. For these reasons, we believe that the proposed Alliance should include in its scope all three transport sectors.
John Cooper remarked, “the creation of this Alliance is a milestone and critical step toward creating Europe’s Renewable Liquid Fuels strategy and toward achieving the right conditions and partnerships to drive investment at large scale and substantial growth in production.”

This Alliance materialises FuelsEurope’s call to EU policymakers to establish a high-level multi-stakeholder dialogue to create the necessary policy framework. Accordingly, FuelsEurope proposes that the Alliance should have within its remit an objective to develop proposals for the regulatory framework to give equal recognition to all renewable and low-carbon technologies, according to the Commission’s principle of technology neutrality.

John Cooper concluded: “We are looking forward to working with the Commission and the other key stakeholders to make the Low Carbon and Renewable Fuels Value Chain Alliance a resounding and early success.”