Biofuels and e-fuels still key to EU CO2 reduction targets: Industry groups
Industry groups representing the biofuel and e-fuel sectors have called on the European Union to maintain its support for these technologies, arguing that they will be essential to achieving the bloc's CO2 reduction targets.
In a joint statement, the groups said that biofuels and e-fuels "can play a significant role in decarbonizing the transport sector, which is responsible for around a quarter of the EU's greenhouse gas emissions."
They added that biofuels and e-fuels are "mature technologies that are already available on the market," and that they can be used to replace fossil fuels in a variety of applications, including road transport, aviation, and shipping.
The groups' call comes as the EU is reviewing its Renewable Energy Directive (RED), which sets out the bloc's targets for renewable energy use. The European Commission is expected to publish a proposal for a revised RED in June.
The biofuel and e-fuel industries are hoping that the Commission will maintain its support for these technologies in the revised RED. They argue that biofuels and e-fuels will be essential to achieving the EU's target of reducing greenhouse gas emissions by 55% by 2030.
What are biofuels and e-fuels?
Biofuels are liquid fuels that are produced from biomass, such as plants, algae, or animal fats. E-fuels are synthetic fuels that are produced using renewable electricity and hydrogen.
Both biofuels and e-fuels can be used to replace fossil fuels in a variety of applications, including road transport, aviation, and shipping.
Biofuels are currently the most widely used renewable fuel in the EU. In 2020, biofuels accounted for around 10% of the bloc's total transport energy consumption.
E-fuels are still in the early stages of development, but they have the potential to play a major role in decarbonizing the transport sector in the future.
Why are biofuels and e-fuels important for the EU?
Biofuels and e-fuels are important for the EU because they can help the bloc to reduce its greenhouse gas emissions and achieve its climate targets.
Biofuels can reduce greenhouse gas emissions by up to 90% compared to fossil fuels. E-fuels can reduce greenhouse gas emissions by up to 100% compared to fossil fuels.
In addition, biofuels and e-fuels can help the EU to reduce its dependence on imported fossil fuels.
What are the challenges facing the biofuel and e-fuel industries?
The biofuel and e-fuel industries are facing a number of challenges, including:
- The high cost of production
- The availability of sustainable feedstocks
- The lack of infrastructure
- The competition from fossil fuels
Despite these challenges, the biofuel and e-fuel industries are growing rapidly. The global biofuel market is expected to reach $243 billion by 2027, and the global e-fuel market is expected to reach $2.5 trillion by 2050.
What can the EU do to support the biofuel and e-fuel industries?
The EU can support the biofuel and e-fuel industries by:
- Investing in research and development
- Providing financial incentives for the production and use of biofuels and e-fuels
- Creating a supportive policy environment
- Raising awareness of the benefits of biofuels and e-fuels
By supporting the biofuel and e-fuel industries, the EU can help to reduce its greenhouse gas emissions, achieve its climate targets, and reduce its dependence on imported fossil fuels.
Conclusion
Biofuels and e-fuels are essential to achieving the EU's CO2 reduction targets. They can help to decarbonize the transport sector, reduce the bloc's dependence on imported fossil fuels, and create jobs. The EU should continue to support the biofuel and e-fuel industries by investing in research and development, providing financial incentives, and creating a supportive policy environment.