2030 Climate Ambition
FuelsEurope supports the Green Deal’s ambition for climate neutrality in 2050 and will work with the EU institutions, Member States, and stakeholders, to help create the essential enabling policy framework.
The European refining industry recognises that there is no business as usual and is ready to play a full role by developing low-carbon liquid fuels (including net-zero carbon fuels)*, as well as other products and services needed to achieve this the climate neutrality objective.
FuelsEurope welcome the EC’s commitment to present an impact-assessed plan before increasing the EU’s GHG emission reductions target for 2030. Setting the 2030 climate ambition is an important step that requires an informed process relying on a set of robust data.
The recently adopted Clean Energy for All Europeans package will have to be implemented while being reviewed and possibly revised, the impact-assessed plan should take into account the following elements:
- In the transport sector, the recognition of the contribution of low-carbon liquid fuels (including net-zero carbon fuels) to a possible increase of the 2030 CO2 efficiency standards for road light-duty vehicles;
- The impact assessment should consider the supply and demand of low carbon technologies across transport modes. The road sector, given its regulatory environment, price structure and scale, will be an important lead market that will be critical in mobilising investments and innovation in low-carbon fuels;
- Mobilising these investments will hinge critically on recognising the holistic contribution of transport fuels to GHG reductions in the regulatory framework (i.e. a well-to-wheel approach);
In the Emissions Trading System sectors:
- Whether a carbon border adjustment mechanism will be put in place or not;
- complementarity with existing carbon leakage schemes, and consider the transfer of production and investment outside the EU, as well as imports and exports within its scope;
- realistic expectations for the adoption of new low-carbon technologies and use of low and zero-carbon energy (before 2030), beyond what the current reduction trajectory (-43% in 2030 compared to 2005 levels) already requires
- Areas of potential overlap with the to-be-reviewed Energy Taxation Directive;
- Carbon leakage (CL) risk should be an inherent element of the impact assessments accompanying the decisions on climate targets rather than a separate initiative. Avoiding the risk of CL is a pre-condition for preserving the environmental integrity of EU energy and climate policy, and the global competitiveness of its Energy Intensive Industry. As such, we urge that CL measures need to remain commensurate with and effective for the level of the pursued climate ambition. Hence, a unilaterally increased climate ambition would require a strengthened framework of CL provisions if there are not comparable systems globally.
In performing this thorough assessment, it is imperative that the EU:
- ensure predictability for industry and investors to allow them to realise their investments and development,
- to reach future climate change targets, investment certainty is critical and any changes to legislation should not be retrospective; a grandfathering process is required to give investment and regulatory certainty; the introduction of new regulatory instruments needs to ensure complementarity and avoid regulatory overlaps;
- examine carefully the consequences on the EU’s industry competitiveness, the technical/economic achievability, the societal cost and the employment/social implications of any increased target;
- follow closely the better regulation guidance on involving all affected stakeholders in the legislative process;
- Consider the significant uncertainty associated with the current COVID-19 crisis and its expected effect on governments, industries, and citizens alike.
*Low-carbon fuels are able to reduce CO2 emissions during their production and use (also referred to as “well-to-wheel”) compared to conventional, fossil-based fuels.