To help meet decarbonisation targets, a European Commission proposal would give shipping priority access to low- and zero-emissions fuels over sectors which have access to other decarbonisation solutions like electrification, as a recognition of the hard-to-abate nature of emissions from assets with high power demands moving around the world with long periods away from land-based infrastructure.
The policy appeared in a communication from the Commission to the European Parliament setting out plans for a 2040 emissions reduction target of 90% to ensure the bloc meets its goal of climate neutrality by 2050. The proposal also noted the importance of fuel prices to competitiveness in maritime and aviation transport, and that access to sufficient volumes of sustainable fuels is key to reaching climate ambitions.
“Bioenergy should go in priority to sectors where the potential for electrification is limited, such as air or maritime transport”, the Commission said.
The proposal noted the existing mechanisms for carbon emissions reduction in the EU, including Fit for 55 measures, FuelEU Maritime, ETS, and the use of ETS revenues to organise calls for proposals under the innovation fund with specific maritime topics.
The European Community Shipowners Association (ECSA) welcomed the Commission’s recognition of the cost impact of greener fuels and its commitment to considering regulatory support.
“It’s the first time we see such a strong commitment to give shipping priority access to low- and zero-emission fuels such as advanced biofuels and e-fuels. The price gap is immense, as the cost of sustainable fuels can be four times higher compared to fuels currently used in shipping. We look forward to working with the Commission to translate this commitment into immediate action, and to leverage the earmarked ETS revenues through dedicated calls already under the current Innovation Fund” said Sotiris Raptis, ECSA’s secretary general.