Road transport is an essential trigger for unlocking the production of ReFuels at industrial scale

FuelsEurope published its contribution to the decarbonisation of transport in the framework of the “Fit for 55 package” expected on the 14th of July. This comprehensive overview of the role and benefit of different policies shows that no single policy will be sufficient to create momentum for change throughout a sectoral value-chain: close coordination and integration between policies that impact OEMs, fuels, infrastructures and customer choices are needed. The combination of multiple policy tools should be calibrated for an effective stimulus for investments.

There is a widespread recognition of the fact that Low-Carbon Liquid Fuels, also called ReFuels, are a key instrument for the decarbonisation of aviation, maritime and long-distance road transport. However, road transport at large, including passenger cars and vans, is an essential trigger for unlocking the production of these fuels at industrial scale.

The uptake of electrification will require time for vehicle fleet turnover and distribution infrastructures deployment. During the transition of passenger cars and vans to electric powered vehicles, low-carbon liquid fuels are the most efficient way to cut emissions from vehicles with an internal combustion engine and to allow the optimization of the implementation plan of infrastructures for electricity and hydrogen.

Low-carbon liquid fuels are a no-regret option: the build-up of production capacity for these fuels will progressively reduce their cost, through the creation of economies of scale and through the repayment of the capital cost. Over time, the reduction of demand for fuels from road transport will free up growing volume for aviation and maritime, at an affordable price.

Alessandro Bartelloni, FuelsEurope Director, explained “building on the recommendations of our Clean Fuels for All strategy which outlines how the adoption of low-carbon technologies using low-carbon and sustainable, renewable feedstocks, has the potential to substantially cut GHG emissions from refineries and fuels, we are now making specific regulatory proposals for the decarbonisation of transport.”

Alessandro Bartelloni furthermore said “the transition should carefully address the societal aspects deriving from changes in employment pattern, skills requirements and inequalities between EU regions and sectors of society. No one should be left behind, and access to affordable mobility should be protected as one of the fundamental rights of all citizens.”