EU eyes 26pc renewable transport by 2030

The European Commission has delayed until mid-July its presentation of a legislative proposal to boost renewables. A draft document indicates a 26pc target share for renewables in transport by 2030.

A 312-page draft staff working document drawn up by the commission substantiates a forthcoming proposal to revise the EU's renewables directive as part of a wider package of measures to reach a 2030 target to reduce greenhouse gas (GHG) by 55pc. The document confirms a target share for renewables in overall energy consumption of at least 38-40pc in 2030, hinted at last year when the 55pc GHG cut was proposed.

Options include boosting, from 14pc to 26pc, the target share of renewables in the transport sector by 2030, with the sub-target for advanced biofuels increasing from 3.5pc to 5.5pc, albeit taking into account the amount of advanced biofuels estimated for use in the aviation and maritime sectors.

Achieving the transport targets would require EU member states to set out obligations on fuel suppliers with various sub-options, including a requirement to obtain minimum shares for advanced biofuels and renewable fuels of non-biological origin (RFNBOs). Fuel suppliers could also face an obligation to reduce the emission intensity of fuels sold, with no sub-targets for advanced biofuels and RFNBOs.

The draft leaves a cloud over the future of the fuel quality directive (FQD) which, in addition to fuel quality standards, sets a target to reduce GHG emissions of transport fuels by 6pc but has an "outdated" set of sustainability criteria and administrative burden, according to the draft. One of the options considered to increase the share of renewables in transport to 26pc — with new fuel blends and a dedicated supply obligation for renewable aviation fuels — explicitly removes the FQD's 6pc emissions reduction target.

Also relevant is revision of existing fuel technical standards to facilitate introduction of B10 diesel, albeit with the introduction of an EU-wide B7 diesel protection grade for the significant share of vehicles not compatible with B10 by 2030, estimated at some 28pc.

The commission is expected to outline a raft of measures on 14 July aimed at achieving the 55pc GHG emissions reduction target by 2030. They include revisions to legislation covering sectors under the EU Emissions Trading System (ETS) and other sectors — including transport, buildings, agriculture, non-ETS industry and waste — that account for almost 60pc of total domestic EU emissions.

The commission will also make proposals for a carbon border adjustment mechanism and a revision to the renewable energy efficiency directives. A revision of the energy taxation directive will give favourable tax treatment to "sustainable biofuels, bio-liquids and biomass as well as for to renewable hydrogen and less favourable treatment to fossil fuels". The latter would require EU member states to unanimously agree. The commission has previously withdrawn a proposal to revise energy taxation due to opposition from a few member states.

By Dafydd ab Iago