Clean Maritime Fuels Platform: EU policymakers should unlock investments in production of clean maritime fuels

07.11.2024

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

The Draghi Report estimates that €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.

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. 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 happen, 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”, said Sotiris Raptis, ECSA Secretary General.

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-industrialization, help the EU successfully deliver climate neutrality by 2050, ensure a secure supply of energy, and foster innovative, EU-based, globally competitive industry for the welfare of EU economies and citizens”, stated Liana Gouta, Director General of FuelsEurope.

By linking the FuelEU Maritime with the supply mandates of the Renewable Energy Directive and abolishing stringent eligibility criteria, we can gradually increase eFuel capacities in the maritime sector.”, said Ralf Diemer, Managing Director of the eFuel Alliance.

The following decade will lead to a fundamental shift in the European maritime fuel supply structure owing to the introduction of new regulations. The Draghi report places renewable and low-carbon fuels at the forefront of decarbonisation for the hard-to-abate maritime sector, and our industry is fully ready to support European shipowners to achieve this transition in a sustainable and cost-efficient way”, said Angel Alvarez Alberdi, Secretary General of EWABA.

It is crucial to create a fertile environment for companies to invest in the production of competitive clean shipping fuels in Europe. Building on the Net-Zero Industry Act and the recommendations of the Draghi report, policymakers need to focus on to the importance of building a robust European supply chain for hydrogen and hydrogen derivatives in the maritime sector”, said Daniel Fraile, Chief Policy Officer of Hydrogen Europe.

In the spirit of the Draghi-report, and for stimulating public and private investments, the EU should ensure that its regulations are in line with global developments, also in the maritime domain and notably with the IMO”, said R. Tim Eestermans, Managing Director Europe, Methanol Institute.

About us:

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.

ECSA represents 21 national shipowners’ associations based in the EU and Norway. European shipowners represent 39.5% of the global commercial fleet and provide 2 million Europeans with careers both on board and ashore. ECSA strives for a regulatory environment that fosters the international competitiveness of European shipping, to the benefit of the EU.

FuelsEurope represents the EU conventional and renewable fuels & industrial value chains products manufacturing industry in the policy debate with EU Institutions and other stakeholders, providing an expert opinion on the production process, distribution and use of our industry’s products, in order to contribute to a regulatory framework that promotes the energy transition, boosts sustainable development through supporting a competitive EU industry and establishes effective, technically feasible and sustainable requirements.

The eFuel Alliance is an interest group committed to promoting political and social acceptance of eFuels and to securing their regulatory approval. We represent more than 170 companies, associations and consumer organizations along the eFuel production value chain. We stand for fair competition and equal competitive condition for all relevant emission reduction solutions. We are firmly committed to further climate change mitigation and seek recognition for the significant part eFuels can play in sustainability and climate protection. Our aim is to create the conditions for the industrial production and widespread use of CO2-neutral fuels from renewable sources of energy.

EWABA is a Brussels-based association representing the interests of the European waste-based and advanced biofuels industry before EU institutions, national governments, industry, civil society and the media. We promote the inclusion of waste-based and advanced biofuels in the EU fuel mix as a sustainable means of reducing greenhouse gas emissions in EU transport. Our +55 members active in most EU Member States collect and use waste and advanced feedstocks listed in parts A and B of Annex IX of the Renewable Energy Directive (REDII) to produce sustainable biodiesel with the highest GHG savings (up to +90%) when compared with fossil fuels, thus enabling “near-term decarbonization” of the EU road and maritime transport sectors.

Hydrogen Europe is the leading association representing European based companies and stakeholders from the hydrogen sector that are committed to moving towards a carbon neutral economy by accelerating the European hydrogen industry. With more than 600 members, Hydrogen Europe encompasses the entire value chain of the hydrogen ecosystem: from production, distribution to end uses, including Industry, EU regions & H2 National Associations.

Methanol Institute is the global trade association, representing the world’s leading methanol producers and distributors, transporters, shipowners, and technology companies. With over 100 members and offices in Washington D.C, Brussels, Delhi, Singapore, and Beijing, we serve as the voice of the global methanol industry, promoting methanol as a key chemical building block and an alternative fuel for transportation and power generation.

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