Push for EU investment in clean maritime fuels

The Clean Maritime Fuels Platform calls on EU policymakers to create the regulatory conditions to unlock investments in the production of clean maritime fuels in the EU.

The Draghi Report estimates that EUR 40 billion in annual investments will be needed between 2031 and 2050 for the energy transition of shipping. Building a supply chain for clean fuels in Europe is a priority for the industry to meet its decarbonisation targets and for Europe to achieve its climate targets.

Clean Maritime Fuels Platform supports the report’s conclusions regarding the need to:

• De-risk investments in renewable and low carbon fuels, for example via schemes based on Contracts for Difference and auctions as a service.
• Launch dedicated sectoral calls under the Innovation Fund for the first deployment of decarbonisation solutions. The 20 million EU ETS allowances allocated to the decarbonisation of the maritime sector until 2030 should be used as soon as possible.
• Expand existing funding mechanisms for refuelling and recharging infrastructure.
• Start building a supply chain for renewable and low-carbon fuels in the EU.

Available and affordable

European manufacturing capacity should match demand for clean shipping fuels in Europe as much as possible, in line with the benchmark of the Net-Zero Industry Act.

‘The Draghi Report has recognised the global leadership of European shipping and the need to remain internationally competitive,’ says Sotiris Raptis, ECSA Secretary General. ‘In order to meet our targets, we need clean fuels available in the market in sufficient quantities and at an affordable price. To ensure that the shipping energy transition happens, the EU should de-risk investment in renewable and low carbon fuels and start building a supply chain for renewable and low-carbon fuels in the EU. Moreover, existing funding mechanisms for refuelling infrastructure should be expanded to better ensure the security of supply of clean fuels for shipping.’

Liana Gouta, Director General of FuelsEurope, adds: ‘Mr. Draghi’s report acknowledges the strategic role of renewable and low-carbon fuels, particularly in decarbonising all transport modes. His report highlights the EU’s leadership in this area and calls for a truly technology-neutral approach. We, European Fuel Manufacturers, believe the right EU policy framework and subsidies can create a robust business case to attract private investments and avoid de-industrialisation, help the EU successfully deliver climate neutrality by 2050, ensure a secure supply of energy, and foster an innovative, EU-based, globally competitive industry for the welfare of EU economies and citizens.’

Clean Maritime Fuels Platform

The Clean Maritime Fuels Platform is a bottom-up industry initiative aiming to enhance communication between the shipping sector and fuel producers and to identify common challenges and possible solutions, considering the implementation of the Fit for 55 package and the transition to a net-zero economy by 2050. Its members include ECSA, the eFuel Alliance, EWABA, Hydrogen Europe, FuelsEurope, and the Methanol Institute.

Source: SWZ Maritime