The EU legislates to boost the use of renewable fuels
In July 2021, the European Commission proposed the ‘Fit for 55’ package to meet the new EU objective of a minimum 55% reduction in greenhouse gas (GHG) emissions by 2030.
One piece of the package is the revision of the Renewable Energy Directive (RED II), which will help the EU deliver the new 55% GHG target. Under RED II currently in force, the EU is obliged to ensure at least 32% of its energy consumption comes from renewable energy sources by 2030.
The EU Council’s Position
In June, the Council adopted its negotiating position on the RED II. The Council agreed to set a binding EU-level target of 40% of energy from renewable sources in the overall energy mix by 2030.
Regarding the sub-targets for transport, the Council introduced the possibility for member states to choose between:
- a binding target of 13% greenhouse gas intensity reduction in transport by 2030;
- or a binding target of at least 29 % renewable energy within the final consumption of energy in the transport sector by 2030
The Council set a binding sub-target for advanced biofuels in the share of renewable energies supplied to the transport sector at 4.4 % in 2030. Regarding renewable fuels of non-biological origin in transport (mostly renewable hydrogen and hydrogen-based synthetic fuels), the Council agreed on an indicative sub-target of 5.2% by 2030.
The Council set an indicative target of a 1.1%t annual average increase in renewable energy use for industry. It also agreed that 35% of the hydrogen used in industry should come from renewable fuels of non-biological origin by 2030 and 50% by 2035.
The Parliament’s position
The EU Parliament voted to raise the share of renewables in the EU’s final energy consumption to 45% by 2030.
In the transport sector, deploying renewables should lead to a 16% reduction in greenhouse gas emissions, through the use of higher shares of advanced biofuels and a more ambitious quota for renewable fuels of non-biological origin such as hydrogen.
Fuel suppliers would be obliged to ensure that the share of renewable fuels of non-biological origin in the energy supplied to the transport sector is at least 5.7 % in 2030.
According to the Parliament, from 2030 onwards, fuel suppliers should deliver at least 1.2% of renewable fuels of non-biological origin and renewable hydrogen to the maritime transport mode.
Next steps
The Council and the Parliament will now enter negotiations to agree on the final text.
EU Commission new “European Hydrogen Bank”
“Hydrogen can be a game changer for Europe” said European Commission President Ursula von der Leyen during her State of the Union speech on September 14th. The Commission will create a new European Hydrogen Bank, which will help guarantee the purchase of hydrogen and invest €3 billion to construct a future hydrogen market.
Sources
EU COMMISSION/ Proposal for a review of the Renewable Energy Directive (RED)
EU COUNCIL/ General approach on renewable energy directive
EU PARLIAMENT/ Decision by Parliament, 1st reading
EU COMMISSION/ Von der leyen 2022 State of the Union speech
