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Fit for 55: Deal on New EU Rules for Cleaner Maritime Fuels

(European Parliament) Big ships to gradually reduce greenhouse gas (GHG) emissions; Containerships and passenger ships at major EU ports to use on shore power supply as of 2030; Ships fuel mix to have at least 2% of specific renewable fuels as of 2034 — Parliament and Council reached a deal on cleaner maritime fuels, asking to cut ship emissions by 2% as of 2025 and by 80% as of 2050, to help the EU become climate neutral.

A provisional agreement reached on early Thursday morning between the European Parliament and Council negotiators sets up a fuel standard for ships to steer the EU maritime sector towards the uptake of renewable and low-carbon fuels and decarbonisation.

Cutting maritime emissions

During the talks, MEPs succeeded in ensuring that ships will have to gradually reduce greenhouse gas (GHG) emissions by cutting the amount of GHG in the energy they use (below 2020 level of 91.16 grams of CO2 per MJ) by 2% as of 2025, 6% as of 2030, 14,5% as of 2035, 31% as of 2040, 62% as of 2045 and 80% as of 2050. This would apply to ships above a gross tonnage of 5000, which are in principle responsible for 90% of CO2 emissions, and to all energy used on board in or between EU ports, as well as to 50% of energy used on voyages where the departure or arrival port is outside of the EU or in EU outermost regions.

MEPs also ensured that the Commission will review the rules by 2028 to decide whether to extend emission-cutting requirements to smaller ships or to increase the share of the energy used by ships coming from non-EU countries.

Thanks to MEPs, the deal gives more credits, as an incentive, in the form of offsetting emissions to those ship owners who use renewable fuels of non-biological origin (RFNBO) from 2025 to 2034. The deal also set a 2% renewable fuels usage target as of 2034 if the Commission reports that in 2031 RFNBO amount to less than 1% in fuel mix.

Plugging ships to on shore power supply

According to the preliminary agreement, containerships and passenger ships will be obliged to use on-shore power supply for all electricity needs while moored at the quayside in major EU ports as of 2030. It will also apply to the rest of EU ports as of 2035, if these ports have an on-shore power supply. This should significantly reduce air pollution in ports.

Certain exemptions, such as staying at port for less than two hours, using own zero-emission technology or making a port call due to unforeseen circumstances or emergencies, will apply.

Quote

EP rapporteur Jörgen Warborn (EPP, SE) said: “This agreement sets out by far the world’s most ambitious path to maritime decarbonisation. No other global power has drafted such a comprehensive framework to tackle maritime emissions. This is truly ground-breaking.”

“This regulation will force others to move too. Europe will do its fair share, but European citizens and companies should not foot the bill for the entire world’s climate efforts.”

“We guarantee the sector long-term rules and predictability, so that they dare to invest. Shipping companies and ports can focus their resources on delivering the greatest climate benefits and the most value for money. This protects the jobs of seafarers, dockworkers and workers in the export industry, and sets an example for other countries to follow.”

Next steps

The informal deal on sustainable maritime fuels rules still needs to be approved by the Council Committee of Permanent Representatives and Parliament’s Transport and Tourism Committee, and then the Parliament and Council as a whole.

Background information

Transport was responsible for about a quarter of the EU’s total CO2 emissions in 2019, of which 14% came from water navigation, according to European Environment Agency. New rules on alternative fuel infrastructure and maritime fuel are part of the “Fit for 55 in 2030 package”, which is the EU’s plan to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels in line with the European Climate Law. READ MORE

European Ports Welcome FuelEU Maritime Agreement (Maritime Logistics Professional)

Excerpt from Maritime Logistics Professional: The European Sea Ports Organisation (ESPO) has welcomed the preliminary agreement between EU co-legislators on the FuelEU Maritime regulation.

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ESPO says the ambitious requirements for ships to reduce emissions starting in 2025 will help drive the uptake of alternative fuels in shipping, as well as help ensure the use of shore power. The organisation further welcomes the requirement for ships to use shore side electricity at berth in Trans-European Transport Network (TEN-T) ports as well as in other ports which installed this infrastructure starting in 2030.

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The political agreement reached on FuelEU Maritime must now be formally adopted. Once this process is completed by the European Parliament and the Council, the new rules will be published in the Official Journal of the European Union and enter into force 20 days after publication.

“With the long-term outlook of this agreement, we are sending a clear signal to the sector across the value chain, from shipowners and operators to fuel producers, shipyards and equipment manufacturers, that it is worthwhile and necessary to invest in sustainable maritime fuels and zero-emission technologies,” said Adina Vălean, Commissioner for Transport. READ MORE

Brazil Flex-Fuel Cars Helping Drive Green Future

by Laura Guedes and Vinicius Damazio (Argus Media) The transformation to a greener future for cars will require time and a steadfast policy commitment, but the sustained popularity of flex-fuel vehicles (FFVs) has already put Brazil some way down the road towards sustainability.

As it turns 20, the flex-fuel engine is at the center of a debate that divides the Brazilian automotive industry, as to which solution will drive the country’s transition to a cleaner mobility model.

Some automakers defend a transition model based on the ethanol hybrid as the appropriate solution for most drivers in the medium term, leaving fleet electrification for another moment.

Others claim that Brazil may be seen as a “late mover” on the electric vehicle (EV) market and risks losing strategic advantage if it does not get into gear soon.

For major European automaker Stellantis chief executive Carlos Tavares, the flex-fuel vehicle is the most cost-effective and affordable option for decarbonization in Brazil.

“The electric vehicle makes no sense compared to a car that can run on 100pc ethanol — not to mention that it is much more expensive for the middle class,” Tavares said during a roundtable discussion in February.

Stellantis is the fourth-largest automaker in the world and is the result of a 2021 merger between Fiat Chrysler and Peugeot Citroën.

Tavares believes 100pc ethanol should play a larger role in Brazil, on the belief that there is minimal difference in total carbon emissions between flex-fuel vehicles and electric vehicles, while flex fuel vehicles present a significant cost savings.

Still, Stellantis expects to have the technologies needed to develop hybrid ethanol-electric vehicles in Brazil by the end of 2023, erasing the barrier between electric and flex-fuel cars.

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Government energy research agency EPE is more in line with the ethanol-friendly position that Stellantis advocates, arguing that the country should not jostle for first mover advantage.

“The ample availability of renewable fuels produced domestically, as well as the widespread flex-fuel technology, allows the country to wait for the development of the global industry [of electric cars] before committing to a route,” EPE says, adding that ample ethanol availability obviates the need to develop retail chains to support EVs.

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In fact, nationwide availability of ethanol established back in the late 1970s was a key element in the success of flex-fuel vehicles, which now account for 85pc of all cars on the road in Brazil, and 83pc of all new light vehicle sales in 2022, data from Brazil vehicle association Anfavea says.

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FFVs went on from selling just 48,178 units in 2003, or 3.6pc of total light vehicle demand, to 1.63mn vehicles last year. The domestic car industry also reached a milestone of having delivered 40mn flex-fuel vehicles as of February since 2003, according to Anfavea.

The flex-fuel motor should also attract more attention as a solution to decarbonizing other major emerging economies.

“India and countries in southeast Asia expressed great interest in the flex technology,” Anfavea says. “They are under pressure to decarbonize but are unable to quickly electrify the fleet.”

For Brazil, EPE expects internal combustion engines and flex-fuel motors to dominate vehicle sales for the next decade, with innovations like micro-hybrids and mini-hybrids representing just an incremental portion of total demand.

FFVs will account for almost 89pc of the Brazilian car fleet, according to the agency. READ MORE

A new IFPEN study confirms the essential role of bioethanol in reducing automotive CO2 emissions (Bioethanol Collective (Google Translation))

Renewable ethanol is EU’s most cost-effective solution for reducing car emissions, new research shows (ePURE)

A New IFPEN Study Confirms the Essential Role of Bioethanol in Reducing Automotive CO2 Emissions

(Bioethanol Collective (Google Translation)) As the final European negotiations begin on the rules concerning CO2 emissions from new cars until 2035, a study shows that plug-in hybrid vehicles running on Superethanol-E85 are as beneficial for the climate as 100% electric.

Plug-in hybrid vehicles running on Superethanol-E85 are as beneficial for the climate as 100% electric according to an IFPEN study .

The study carried out by IFPEN’s Economics and Environmental Assessment Department measured and compared the greenhouse gas emissions of 3 types of compact cars (segment C): thermal vehicles running on fossil fuel, hybrids rechargeable using Superethanol-E85 and 100% electric cars, in life cycle analysis. This method takes into account all the greenhouse gas emissions due to vehicles and the battery (from manufacturing to recycling) as well as those from the energies used (from production to use). The study covered both the cases of the French and European electricity mixes (see the infographic below).

This comparison made for 2022 with projections for 2040 demonstrates that plug-in hybrid vehicles using Superethanol-E85 and covering 40% of the distances in electric mode are at least as beneficial for the climate as the corresponding 100% electric vehicles, with the electric mix French and a fortiori with the more carbon-intensive European mix.

These results are essential as the “trilogue” negotiations begin between the European Parliament, the Council and the Commission on the CO2 regulation for light vehicles which will determine the types of new vehicles sold from 2035.

What is the status of the draft European Regulation on CO 2 emissions from light vehicles?

With the aim of reducing the climate impact of motoring, the European institutions are in the process of drawing up new regulations on CO 2 emissions from light vehicles. The initial project of the Commission and that of the European Parliament provide that all vehicles sold by 2035 should emit zero CO 2 at the exhaust. This measure favors only the electric vehicle. While maintaining this objective of total decarbonization of new buildings by 2035, the project of the European Council, representing the Member States, leaves the door open to two alternative solutions : continue to use fuels provided that they are completely carbon neutral and authorize plug-in hybrid vehicles, the place of which could be redefined in 2026, depending on the progress of electric vehicles. These proposals will be discussed during the trialogue.

The Collective of Bioethanol and ePURE ask:

that the European institutions respect the commitment to produce a method for evaluating greenhouse gas emissions in life cycle analysis for light vehicles in 2023
that the openings towards carbon-neutral fuels and plug-in hybrids are effectively applied.

Why bioethanol is one of the sustainable solutions to decarbonize the car fleet:

A plug-in hybrid car that runs on Superethanol-E85 does at least as well as an electric car in aiming for carbon neutrality… if we analyze their emissions throughout their life cycle!

A study carried out by IFPEN shows that today and in 2040, “compact” plug-in hybrid vehicles running on Superethanol-E85 are as good for the climate as long-range 100% electric vehicles . And this, even with the very carbon-free French electricity mix, when we measure emissions in life cycle analysis, and a fortiori with the European mix which is less good.

A carbon-neutral Superethanol-E85 is feasible for plug-in hybrids.

Bioethanol produced in Europe achieves an average reduction of 77% in greenhouse gas emissions according to the report published by the European association ePURE for 2021. It improves each year to move towards carbon neutrality. In France, there is already bioethanol which reduces greenhouse gas emissions by more than 100% compared to fossil gasoline (Source DGEC, CarbuRe 2020 and 2021 ). In addition, Superethanol-E85, which contains 75% bioethanol on average, can be made 100% renewable by replacing the average 25% share of fossil gasoline with other renewable fuels (synthetic gasoline from renewable energies… ).

The plug-in hybrid running on Superethanol-E85 offers other advantages

The plug-in hybrid running on Superethanol-E85 combines additional advantages :

It is more practical when the charging stations are busy because it allows you to drive over long distances without recharging the battery, by refueling with Superethanol-E85.
Its battery being smaller, it consumes less mineral resources produced outside the European Union and energy for its manufacture.
It is less expensive than 100% electric, which is beneficial for state budgets and motorists, as shown by a recent study.

Superethanol-E85 could drive 5 million plug-in hybrids by 2040

Superethanol-E85 reached nearly 7% of the gasoline market in France in June/July 2022 (compared to 4% in 2021). Available at 34% of service stations, it has become a practical and economical alternative for French motorists. By using it in very fuel-efficient vehicles such as plug-in hybrids, we could run more than 5 million flex-E85 vehicles in 2040, i.e. 15% to 20% of the vehicle fleet , by consuming ethanol from only 1% French useful agricultural area net of associated food co-products.

Plug-in hybrids running on bioethanol are an effective solution for reducing the impact of vehicles on the climate and better meeting certain needs of motorists. The CO2 regulations for light vehicles must preserve their place.

Focus on the IFPEN study:

IFPEN has studied family vehicles (compact cars – segment C) used both for short daily journeys and longer journeys weekends and holidays. The study assumes that these plug-in hybrid vehicles operate 40% in electric mode and 60% with the internal combustion engine, as recommended by the European Commission. The battery being smaller, its initial carbon footprint is divided by four, which offsets most of the fuel emissions. The reduction in CO2eq emissions from ethanol compared to gasoline improves from 67% in 2022 to 90% in 2040. The carbon footprint of Superethanol-E85, which contains on average 75% bioethanol, decreases with the time, just like that of the battery and electricity with the French mix much better than the European one. The 25% fossil fuel share of E85 is half replaced by other renewable components in 2040. Thus, both solutions remainequivalent in 2040 . NB: to compare 2022 and 2040 over the same distance of 150,000 km, multiply the 2022 figure by 0.6

Infographics available on bioethanolcarburant.com

About the Bioethanol Collective

The Bioethanol Collective is represented by the Interprofessional Association of Beets and Sugar (AIBS) and the National Union of Agricultural Alcohol Producers (SNPAA). Its objective is to inform professionals and the general public about the bioethanol industry. Bioethanol is currently incorporated into gasoline in France, pure or in a derivative, up to 7.5% (including a maximum of 5% pure ethanol) in SP95 and SP98, up to 10% in SP95-E10 and up to 85% in Superethanol-E85. For more information: https://www.bioethanolcarburant.com/

About ePURE – European Renewable Ethanol

ePURE represents the interests of European renewable ethanol producers to European institutions, industry players, media, academia and the general public. Based in Brussels, ePURE speaks on behalf of 39 member companies and associations, with around 50 plants in the EU and UK, representing around 85% of EU renewable ethanol production. The organization, established in 2010, promotes the beneficial uses of ethanol across Europe. READ MORE

Etude des émissions de Gaz à Effet de Serre des véhicules Superéthanol-E85 en Analyse de Cycle de Vie (IFPEN)

Renewable ethanol is EU’s most cost-effective solution for reducing car emissions, new research shows (ePURE)

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