Recent climate events in Europe and beyond have underscored the urgency of tackling climate change and cutting emissions, POLITICO writes in its introduction to “More than a Manifesto”. At the same time, conflicts in Europe and the Middle East have exposed the vulnerabilities of Europe’s energy system. To address these challenges, Europe must achieve climate neutrality by 2050 while ensuring the EU’s economy, citizens, and critical infrastructure have access to sustainable, affordable, and resilient energy and industrial products.
Climate neutrality is essential
According to Politico, the path to climate neutrality by 2050 is not optional for the EU. The industry understands the necessity of reducing emissions and has clear strategies for achieving this goal. The EU economy must transition away from fossil fuels in an equitable and orderly manner, replacing them with renewable, sustainable, and circular alternatives. This transition must occur without disrupting Europe’s energy supplies and industrial value chain.
Fuel manufacturers are already making strides by gradually phasing out fossil feedstocks and scaling up the production of renewable alternatives like biofuels and synthetic fuels. In the EU, the share of energy from renewable liquid fuels used in transport has risen to 8.7%, primarily in road transport. According to the International Energy Agency, EU-based companies are leading in clean energy investments, with some dedicating 15-25% of their total capital spending to clean energy projects, compared to the global average of 2.7%.
Several European facilities have been converted to biorefineries, utilizing 100% sustainable biomass, while others are co-processing a mix of fossil raw materials and sustainable biomass. To accelerate this transition, the EU needs to establish a clear and predictable regulatory framework, provide temporary public support for clean technology development, and adopt a technology-open approach to legislation, POLITICO adds.
Boosting Europe’s energy resilience
Europe’s energy system has faced multiple shocks in recent years, from the pandemic to the war in Ukraine and the subsequent surge in energy prices. These events have highlighted the need for a strong, diversified domestic energy industry. The EU’s fuel and products manufacturing sector, with its extensive distribution and storage infrastructure, plays a crucial role in the region’s energy security. Even during recent crises, European fuel supplies remained stable.
As Europe replaces fossil fuels with more sustainable feedstocks, energy security will improve. Most of these feedstocks, such as municipal, agricultural, and forestry waste, are produced domestically. Producing renewable fuels at European facilities using local feedstocks can enhance energy security, foster the circular economy, and create high-skilled jobs.
Supporting national economies and local jobs
The EU faces the risk of essential industries moving abroad due to attractive subsidies and regulatory incentives in other regions. If EU industrial assets relocate, jobs will be lost, and Europe will become more dependent on imports for strategic goods.
Furthermore, relocating to markets with less stringent environmental and social standards could harm the environment and reduce worker welfare.
The EU has the potential to lead global innovation in advanced biofuels and synthetic fuels, leveraging the technological expertise of its industry. This transition can provide well-paid, high-quality jobs and ensure that the energy transition is just. By transforming existing assets to produce renewable fuels and products, the sector can mitigate cost impacts on citizens and businesses, expand consumer choice, and support the circular economy.
Many facilities are already being converted to produce renewable fuels compatible with existing road, aviation, and marine fleets, as well as the current storage and fueling infrastructure. This accelerates the decarbonization of the transport sector.
A comprehensive strategy for transition
To remain internationally competitive and supply both the transport sector and other industries, the EU needs a Strategy for the Transition of Liquid Fuels and Products. This strategy should complement other sectoral decarbonization strategies within the Green Deal, providing a regulatory framework to unlock necessary investments. It should support new value chains, ensure access to finance and funding, develop workforce skills, and maintain the international competitiveness of the industry. More on this one can be found in “More than a manifesto” by POLITICO.
