How is Europe adapting to the demands of greener fuels?  

The number of discussions about households, businesses, countries and continents becoming more environmentally friendly is increasing and becoming more important. Not only did COP26 shine a light on the need for the world to work together to tackle the rising carbon emissions, but it also highlighted the current irregular approaches taken globally. Europe and the European Union are trying to bring its member states back in line to work together toward their new targets of cutting carbon emissions. But what do the current and future plans for fuel look like within this mix?  

Does Europe have a consistent approach to green fuels?

Yes and no – this isn’t easy to answer. In 2019, the European Commission put together a package of proposals called the European Green Deal to reduce net greenhouse gas emissions by at least 55% by 2030. The idea is to bring European Union member states together to make the transition to greener ways of living and working cohesive and complementary.

There is also a European Climate Law to back this deal up, and that aims to ensure all sectors and states play their part. However, this only binds EU member states, not the whole of Europe. Plus, member states are divided on how to implement the changes. For example, neither the law nor the deal set out a step-by-step policy for green fuels. Therefore, although each country is legally bound by the European Climate Law, they have some freedom on how they reach the target and this focus may not be on the same green fuels and technology.

For UK-based fuel businesses with European partners or supply chains, it’s important to note there will probably be different processes and procedures to contend with in the not-too-distant future. We’re still waiting on the UK Government to lay out clear plans and guidance for businesses looking to transition towards greener fuels, and whether these will marry up with the EU is hard to say. Until we know more, there is little that businesses can do but wait.  

What is REPowerEU?

Earlier in 2022, the European Commission announced the REPowerEU plan in response to the current global energy market disruption caused by the war in Ukraine. It sets out a proposal of ending the EU’s dependence on Russian fossil fuels and urgently transform Europe’s energy system. The plan’s aim is not only to transform the current energy system but also to bring in an age of green transformation that will increase Europe’s economic growth, and security and take a massive step towards climate action. It’s broken into several chapters:

• Saving energy – introducing energy-efficient and energy-saving measures, such as heating systems, insulation and appliances.
• Diversifying supplies and supporting international partners – continuing to introduce new supplies such as LNG (liquified natural gas) and hydrogen, as well as making them more accessible.
• Accelerating the rollout of renewables – increasing the speed of the renewable energy rollout through solar, heat pumps and hydrogen.
• Reducing fossil fuel consumption in industry and transport – not just focusing on homes but also on how to replace current fuels in the industry with more energy-efficient sources.
  
• Smart Investment – increasing investment in the private and public sectors to support the development of the green transformation.

For the fuel industry, the REPowerEU plan is going to have massive consequences. On one hand, encouraging households and businesses to reduce their fossil fuel usage will mean the types of fuel needing to be transported will change. There is likely to be a higher demand for fuels like hydrogen and LNG which will change how fuel businesses store, transport and unload fuel. On the other hand, the plan also urges businesses to accelerate the move toward zero-emission vehicles such as transportation lorries. The European Commission is even looking at legislation to enforce this move. For businesses, this is likely going to need large investments in new vehicles and force a new way of working for many.  

What does the future hold for green fuels in Europe?

The push toward green fuels across Europe is clearly going to keep moving forward, with many initial deadlines coming up in around 8 years. Although this originally comes from the drive to decrease existing carbon emission levels, the current Russian invasion of Ukraine has highlighted Europe’s dependency on fossil fuels and the need for change to be accelerated compared to the current plan.

Although the exact plan of action is unclear, there is certainly a renewable fuel revolution coming. This will come in many forms such as:

• Lorries powered by renewable sources instead of fossil fuels
• Households and businesses looking to invest in other fuel types requiring new transportation methods
• New partnerships and supply chains to transport and power future technologies

Exact details and plans will develop over the coming years and businesses will continue to develop with them to remain relevant.  

How we can help?

In a changing world, it can be difficult to know what will happen. However, here at TouchStar, we are always here to help digitise and optimise your logistics. Our team of experts are on hand and more than happy to discuss any queries you may have. Get in touch today to find out more.