Eurofuel Newsletter #1
Dear reader,
Welcome to the first newsletter of 2025.
This newsletter delivers critical updates on two significant events poised to redefine the future of our industry: the launch of the Clean Industrial Deal and the Affordable Energy Plan, both integral components of the newly unveiled European Commission's work programme.
Additionally, Dan Jørgensen, the new Commissioner for Energy and Housing, has presented an ambitious agenda that includes setting renewable energy targets for the EU by 2040, simplifying regulatory processes, and launching a comprehensive European Affordable Housing Plan.
To support these priorities, Eurofuel will collaborate closely with EU policymakers to enhance the recognition of liquid fuels in the decarbonization process and the transition to renewable energy. By promoting policy frameworks that favor sustainable liquid fuel technologies, Eurofuel aims to contribute to a balanced and pragmatic approach to Europe's energy future.
As the EU moves forward with its ambitious agenda, integrating renewable liquid fuels into the broader decarbonisation strategy will be essential to achieving both environmental and economic sustainability.
Happy reading!
Yours,
Dr Ernst-Moritz Bellingen
The Clean Industrial Deal officially launched
On 26 February, the European Commission published the Clean Industrial Deal, which outlines a comprehensive plan to turn decarbonisation into an opportunity for European industries, ensuring affordable energy, creating quality jobs, and providing businesses with the right conditions to thrive.
A key focus of the Clean Industrial Deal is supporting energy-intensive industries such as steel, metals, and chemicals. The clean-tech sector, which plays a crucial role in industrial transformation and circularity, is also at the heart of the strategy.
To stimulate demand for clean products, the Industrial Decarbonisation Accelerator Act introduces sustainability, resilience, and 'made in Europe' criteria in both public and private procurement.
Financing the clean transition is another pillar of the Clean Industrial Deal, with over €100 billion earmarked to support clean manufacturing in the EU. Additionally, the Innovation Fund will be strengthened, and an Industrial Decarbonisation Bank will be proposed, leveraging existing resources such as parts of the Emissions Trading System (ETS) and revised InvestEU funding to mobilise €100 billion in financing.
The Clean Industrial Deal emphasises cutting regulatory burdens and improving policy coordination between the EU and national governments to further enhance economic competitiveness.
A Call to Action: Recognising Renewable Liquid Fuels in Europe's Energy Transition
Achieving climate neutrality requires a comprehensive strategy that includes all energy solutions. Eurofuel, in an open letter, urges EU leaders to recognise renewable liquid fuels as a critical part of the energy transition, especially for the 20 million European households dependent on liquid fuels, many in rural or off-grid areas unsuitable for electrification.
Renewable fuels like Hydrotreated Vegetable Oil (HVO), Fatty Acid Methyl Ester (FAME), and Power-to-Liquid (PtL) offer up to 100% lower greenhouse gas emissions and are compatible with existing heating systems and distribution networks. These fuels provide a cost-effective, scalable alternative for regions where expanding electricity or gas infrastructure is unfeasible and can also be hybridised with other renewables for flexibility.
However, legislative barriers hinder the scale-up of these technologies. Eurofuel calls for a dedicated EU action plan to ensure their viability, emphasising the need for stable policy frameworks, technology neutrality, life-cycle emissions assessments, support for innovation, consumer choice, and socially responsible building efficiency standards.
Incorporating renewable liquid fuels is essential for a fair, cost-effective transition that enhances energy security, reduces emissions, and supports vulnerable communities without costly infrastructure changes. Eurofuel remains committed to collaborating with stakeholders to promote a holistic energy transition.
Affordable Energy Action Plan revealed
On 26 February, the European Commission adopted the Affordable Energy Action Plan to lower energy costs for businesses and households while facilitating the transition to a low-carbon economy.
Measures include accelerating the deployment of clean energy, expanding electrification, strengthening the internal energy market with enhanced interconnections, and increasing energy efficiency to reduce dependence on imported fossil fuels.
The plan comprises eight targeted actions, many of which will be implemented in 2025.
One of the primary objectives is to make electricity bills more affordable by optimising network charges and reducing national taxes on electricity. This will immediately lower costs for consumers while ensuring a more efficient energy grid.
The plan also focuses on ensuring well-functioning gas markets, as gas prices remain above pre-crisis levels, impacting industrial competitiveness.
Completing the Energy Union is another key priority, as energy prices vary significantly across EU countries.
Competitiveness Compass sets out the Commission’s plans for 2025
On 29 January, the European Commission presented the Competitiveness Compass, the first major initiative of this mandate, setting a strategic framework to guide its work. The Compass outlines a path for Europe to become a global leader in future technologies, services, and clean products while achieving climate neutrality.
European Commission President Ursula von der Leyen highlighted that the Competitiveness Compass translates the recommendations of the Draghi Report into a concrete roadmap, emphasising the need for speed and unity to implement the necessary reforms.
The Compass identifies three key areas for action: innovation, decarbonisation, and security. The EU will introduce a Start-up and Scale-up Strategy to streamline regulations and remove barriers to growth. In parallel, the Commission will focus on reducing energy costs and supporting the transition to clean technologies through the upcoming Clean Industrial Deal, an Affordable Energy Action Plan, and targeted measures for energy-intensive industries like steel, metals, and chemicals.
The strategy is reinforced by five horizontal enablers: simplifying regulatory and administrative processes, improving the Single Market’s efficiency, securing financing for competitiveness, investing in skills and workforce mobility, and enhancing coordination between EU and national policies.
A Competitiveness Coordination Tool will ensure effective policy implementation across Member States, while a new Competitiveness Fund will streamline EU financial support.