Europe has long been at the forefront of innovation in renewable and low-carbon fuels. Today, it holds 60% of the world’s high-value patents in renewable fuels, demonstrating a leadership position that can be expanded with the right regulatory framework. Draghi’s report highlights this strategic advantage and calls for a revision to the EU’s carbon dioxide fleet emissions regulation with a technology-neutral lens. This change is essential to ensure that the potential of carbon-neutral fuels is fully recognized and integrated into Europe’s decarbonization strategy. A holistic EU strategy for transitioning liquid fuels, to decarbonize all transport sectors and support this process in other crucial industrial sectors, is urgently needed. Without such a plan, Europe risks missing out on one of the most effective paths to net zero. This is not just a matter of environmental stewardship; it is an industrial imperative that supports the circular economy, strategic autonomy and a competitive energy supply chain.
As outlined in Mario Draghi’s recent report, Europe’s future — its prosperity, competitiveness and capacity for innovation — depends on a renewed focus on strengthening industrial growth, ensuring economic security and driving decarbonization.
As Draghi rightly emphasized, technology neutrality in transport is key to fostering innovation and ensuring that all viable solutions, including renewable fuels, contribute to the energy transition. With energy security and resilience becoming increasingly urgent, the fuel manufacturing sector remains a cornerstone of Europe’s industrial ecosystem, offering critical support to the circular economy and a competitive energy supply chain.
Safeguarding energy-intensive industries
Europe’s energy intensive industries (EIIs) play a pivotal role in the economy and contribute significantly to the EU’s GDP. Unlike global competitors, many of whom benefit from significant public subsidies without equivalent decarbonization targets, EU-based EIIs are bearing disproportionate burdens in the shift toward a low-carbon economy.
Draghi’s report rightly underscores the need for public support to offset these challenges and prevent de-industrialization. However, support must go beyond funding. It requires dismantling unnecessary regulatory hurdles, ensuring affordable energy prices and addressing delays in permitting processes. We must also align with the Net Zero Industry Act to build critical infrastructure quickly and efficiently, making it possible for EIIs to innovate and thrive in a decarbonized future. A clean industrial deal is imperative in Europe and the liquid fuels manufacturing sector should have a clear role in it.
FuelsEurope, with its strategic industrial manufacturing assets across Europe, and a clear vision and transition plan, has long advocated for regulatory coherence and simplified legislation. In line with the Antwerp Declaration, the Draghi report recommends measures to streamline the complex regulatory landscape for EIIs, promoting a single market for energy and recycled materials and incentivizing innovation through mechanisms like regulatory sandboxes and intellectual property protections. It also seeks to avoid unnecessary administrative burdens that undermine European industries’ competitiveness.
