Independent journal on economy and transport policy
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TRANSPORTATION
ECSA, A4E and T&E implore the EU Commission to promote the production of clean fuels for maritime and air transport
Raptis: we need huge investments, certainties and simplification of access to public and private funding
Bruxelles
February 13, 2025
ECSA, the trade association of shipping companies
Airlines for Europe (A4E), the association that represents
European airlines, and Transport & Environment (T&E),
the independent European environmental association committed to
in reducing the environmental impact of transport, have
published a joint statement strongly urging the
European Commission and EU states to increase production
of clean fuels for maritime and air transport in
Europe.
'As representatives of the sectors of the
maritime transport and air transport and organizations
- reads the statement - we reaffirm the
our commitment to climate and industrial goals
of the EU. To achieve the objectives of the European Green Deal and the
Net-Zero Industry Act (NZIA) and ensure that these sectors
remain competitive, we must now prioritise the
clean fuels for maritime transport and aviation at the
to decarbonise these transport sectors that are "hard
to abbot". A strong European industrial base for
clean fuels - underline ECSA, A4E and T&E - is
essential to achieve climate objectives and ensure the
leadership in green innovation. These fuels
will need to be produced on a large scale to meet the objectives
climate standards for aviation and shipping'.
"The
Europe's potential leadership in fuel technologies
- the document continues - offers a unique opportunity
to build a supply chain that improves energy security, creates
jobs and promote climate goals. However, the
large-scale green fuel projects face significant
uncertainties that discourage private investment. These
include technological risks and initial capital requirements
that disadvantage the "first movers", whether they are
producers, financiers or end users. Additional obstacles
include the high production costs of clean fuels and a
misalignment of business models between manufacturers, which
are looking for long-term contracts at high prices, and users, for
short-term commitments for lower fuel volumes
involve less risk. These factors create high
Financial risks and uncertainty that could be insurmountable
without more personalized public support than that
provided by the current EU Hydrogen Bank and ETS Innovation programmes
Fund».
"To face these challenges - wrote the three
associations - we urge the European Commission to: include
Scalable renewable fuels and innovative technologies
necessary for maritime transport and air transport, two of the
sectors that are more difficult to decarbonise than the economy,
as part of the next Clean Industrial Deal; take advantage of the
Sustainable Transport Investment Plan (STIP) in line with the
Competitiveness Compass to reduce investment risk
needed to rapidly scale up production and distribution
of scalable renewable fuels for shipping and
aviation. Based on the NZIA, the STIP should require that
at least 40% of the scalable renewable fuels needed to
comply with FuelEU Maritime and ReFuelEU Aviation is produced
in the EU'.
In addition, ECSA, A4E and T&E call on the European Commission to
'To create a European industrial base for fuels
Scalable renewables for maritime transport and transport
reducing project risks through support
public finance and national revenues of the ETS, as well as
mechanisms for revenue certainty, such as contracts for
differences. This, in particular, should address
uncertainty arising from the high production costs of
scalable renewable fuels, from long-term purchase commitments
required time frame and market volatility, which
currently in Europe prevent projects from providing large
volumes of renewable fuels, in particular
of hydrogen".
The three associations then urge to "develop a
Built-in matchmaking platform for easy access
aggregated with the funding programmes of Europe and the Member States
Member States according to the one-stop-shop principle. What
update of the Hydrogen Bank - they explain - this mechanism
simplify applications, increase transparency and
it would improve communication between companies and authorities"
and, finally, they call for "facilitating the role of airports and
ports as energy hubs through infrastructure works to
renewable fuels and promoting cooperation
between ports".
"The Draghi report
- recalled the Secretary General of ECSA, Sotiris Raptis, in
Presentation of the Joint Statement today
Referring to the Future of Competitiveness Report
presented last September by Mario Draghi -
found that European shipping alone needs 40
billion euros per year to decarbonise. Il Clean Industrial
Deal must set the conditions for making fuel available
clean for sea transport. We need huge
Investments in clean fuels, certainty through solid
binding requirements and simplification of access to finance
public and private. This is essential to maintain the
internationally competitive European maritime transport,
while ensuring a thriving industrial cluster and
innovative".
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