Source: European Parliament
Several initiatives that promote the use of e-fuels have already been adopted over recent years. The revised Renewable Energy Directive[1] notably sets targets for the uptake of renewable fuels of non-biological origin in transport and industry.
The RefuelEU Aviation Regulation[2] sets targets for the increased use of sustainable aviation fuels and includes specific targets for e-fuels.
The FuelEU Maritime Regulation[3] sets targets for the use of renewable, low-carbon fuels and clean energy technologies for ships.
‘Zero rating’ these fuels in the Emissions Trading System (ETS) provides them with a significant financial incentive. 20 million ETS allowances have been set aside for covering part or all of the price gap between sustainable aviation fuels and fossil fuels in the aviation sector.
The Innovation Fund already provides support, including around EUR 1 billion for 16 sustainable fuel projects (including e-fuels and biofuels) and EUR 2 billion to 30 projects producing hydrogen as principal product. The transport industry will benefit as potential fuel user of these projects.
The Commission plans to propose an initiative to boost renewable energy, including a 2040 renewable energy target. Getting to the 2035 climate neutrality target for cars will require a technology-neutral approach, in which e-fuels have a role to play, through a targeted amendment of the regulation on CO2 standards[4] as part of the foreseen review in 2026.
The Commission is aware of the projected scarcity of these fuels and the need for their availability in other sectors without technical alternatives.
To support sustainable transport fuels in the hard-to-abate sectors (aviation and maritime), the Commission will put forward a ‘Sustainable Transport Investment Plan’.
- [1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023L2413
- [2] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R2405
- [3] https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=CELEX:32023R1805
- [4] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02019R0631-20240101