Industry Associations Lobby EU for Enhanced Low-Carbon Fuels Certification
Key Ideas
- Industry associations urge the EU to refine the Low-Carbon Fuels Delegated Act for alignment with energy and climate goals.
- Calls for greater transparency, fair practices, and traceability systems to support renewable energy growth without burdening operators.
- Emphasis on recognizing better performance of projects, GHG intensity calculation, hydrogen leakage detection, and traceability provisions.
- Need for regulatory certainty and clarity for project developers beyond 2030 review highlighted, alongside the establishment of stakeholder dialogue and forum.
Industry associations, including the Methanol Institute, Europex, and Hydrogen Europe, have come together to appeal to the European Union (EU) to refine the Low-Carbon Fuels Delegated Act. They aim to ensure that the Act is effective, inclusive, and aligned with Europe's energy and climate objectives. The associations emphasize the importance of transparency, fair market practices, and robust traceability systems to support the growth of renewable energy while avoiding unnecessary burdens for economic operators.
Key points raised by the industry players include the necessity to showcase better project performance at each production step, calculation of GHG intensity on a granular basis, consideration of hydrogen leakage detection technologies, and ensuring traceability provisions for both renewable and low-carbon gases. They also stress the need for regulatory certainty beyond the 2030 review of the Delegated Act, advocating for stability in regulatory requirements for projects with extended timelines.
Furthermore, the associations highlight the significance of creating a collaborative dialogue and forum for stakeholders, offering additional input into the Act. Noteworthy is the representation of various parties involved in low-carbon fuels, including low-carbon hydrogen, project developers, producers, infrastructure operators, market stakeholders, and users.
Low-carbon fuels, which must meet a 70% GHG emissions reduction threshold, encompass products like low-carbon hydrogen and its derivatives. These fuels can be derived from different energy sources and production pathways. The European Commission's call for feedback on the certification draft, particularly focused on evaluating emission savings of low-carbon hydrogen and fuels, signifies a step towards refining regulations. Additionally, the commission's terms and conditions for the IF24 Auction under the European Hydrogen Bank further support the production of renewable hydrogen as a non-biological renewable fuel.