Eurofuel Newsletter #6
Dear reader,
Welcome to this sixth and last Eurofuel newsletter of 2024.
As we approach the end of the year, we are starting to have a look to the next year, with particular attention on the significant transformation of the energy and climate policy landscape, both within the European Union and on the global stage.
This month's newsletter brings you the latest updates from two major events that will shape our industry's future: the approval of the new European Commission and the outcomes of COP29 in Baku.
The approval of the new College of Commissioners for 2024-2029 marks a pivotal moment for EU policymaking. With a strong mandate, the new Commission, led by President Ursula Von der Leyen, is set to tackle key policy challenges with a renewed focus on energy and housing. Notably, Dan Jørgensen, the new Commissioner for Energy and Housing, has outlined an ambitious agenda that includes setting 2040 EU renewable energy targets, simplifying regulatory processes, and launching a comprehensive European Affordable Housing Plan.
These initiatives promise to drive significant advancements in our sector, offering numerous opportunities for Eurofuel to engage and contribute.
Simultaneously, the COP29 U.N. climate conference held in Baku highlighted the ongoing global divisions in addressing the climate crisis. Despite the significant setback in global climate commitments, there were notable strides in climate finance, with the New Collective Quantified Goal on Climate Finance aiming to triple support to developing countries by 2035.
However, the contentious issue of phasing out fossil fuels remains unresolved and will be revisited at COP30 in Brazil. The return of Donald Trump to the U.S. presidency has further complicated the negotiations, emphasizing national interests over global cooperation.
In light of these significant developments, we are eager to continue our efforts in highlighting the importance of low-carbon liquid fuels, ensuring that our industry remains a key player in the discussions about the future of the EU energy system.
Happy reading!
Yours,
Dr Ernst-Moritz Bellingen
The EU's new Commissioners ready for action
Big news from Brussels! On 27 November, the European Parliament in Strasbourg approved the new College of Commissioners for 2024-2029. With 370 MEPs in favour and 282 against, the vote in the plenary confirmed the candidates proposed by Ursula Von der Leyen in October.
The new College of Commissioners started its work on 1 December, with a clear focus on addressing key policy challenges and fostering cooperation within the EU.
The Commission President got the backing of her centrist coalition, including the EPP, Renew, and S&D, with some support from the Greens and Conservatives (ECR), but securing support from the Parliament has not been that straightforward.
The parties struggled to reach a compromise due to the obstacles represented by the evaluation of Teresa Ribera, stalled by the Spanish EPP’s demand for a resignation clause if indicted for the Valencia flood disaster, and the opposition from the Socialists and Renew to Raffaele Fitto’s appointment as Executive Vice-President. Concerns were also raised about the Health Commissioner Olivier Várhelyi due to his ties to the Hungarian President Viktor Orbán.
The discussion resulted in a “coalition agreement” between EPP, S&D, and Renew based on nine areas on which the parties pledged to collaborate during the parliamentary term. Despite the new alliance, the Parliament will be all about shifting majorities on a case-by-case basis, with the EPP playing a key role and potentially forming ad hoc coalitions with the far-right. With these new power considerations, the debate regarding energy transition is likely to be less “dogmatic” on how to best achieve climate goals in a technologically neutral way.
Against this background, Dan Jørgensen (Denmark), the new Commissioner for Energy and Housing, will base his agenda on four guiding principles: the necessity of long-term structural changes, delivering fast and tangible results, putting people at the centre, and ensuring inclusivity by engaging with all stakeholders. Regarding energy, Jørgensen is all in for setting 2040 EU renewable energy targets to hit climate goals but was skeptical about updating energy efficiency targets.
He committed to simplifying regulatory processes and reducing administrative burdens to facilitate the energy transition and plans to lower energy prices through the Clean Industrial Deal, phasing out Russian oil and gas imports, and decoupling electricity prices from the gas market. He also emphasised upgrading energy infrastructures and increasing funding for renewable energy projects and energy efficiency enhancements.
On housing, Jørgensen outlined a comprehensive European Affordable Housing Plan, including a construction strategy, a pan-European investment platform with the European Investment Bank, and increased funding for energy-efficient renovations. He will also push for an electrification action plan and a geothermal power strategy to decarbonise heating and cooling.
Meanwhile, other key candidates have successfully passed the committee's scrutiny. Wopke Hoekstra, the Commissioner for Climate, Net-Zero, and Clean Growth, is on a mission to establish 2040 climate targets within the EU Climate Law. He aims to contribute to the Clean Industrial Deal to encourage investment in green technology and affordable energy. Additionally, he intends to advance the Energy Taxation Directive and the Carbon Border Adjustment Mechanism (CBAM). Executive Vice Presidents Séjourné and Ribera will also be involved with energy-related matters, particularly those concerning the decarbonization of energy-intensive industries.
Some of Eurofuel's priorities, such as the Action Plan on Affordable Energy under the Clean Industrial Deal, are scheduled for discussion in the first 100 days of the incoming Commission. Regardless, 2025 is expected to be a crucial year for significant changes in the energy and housing sectors, presenting many opportunities for Eurofuel to establish itself as a balanced and experienced advocate for a cost-effective and affordable transition to low-carbon heating.
COP29 in Baku: Climate commitments weaken amid global divisions
On November 11, Azerbaijan's capital, Baku, hosted the COP29 U.N. climate conference, which aimed to evaluate the global climate situation and create an action plan to tackle the climate crisis. However, the conference faced a notable setback in global climate commitments, especially with the return of Donald Trump to the U.S. presidency, a figure known for his skepticism regarding climate change.
The summit revealed a significant division among countries, particularly between those supporting the role of fossil fuels in their national economies and those advocating for more ambitious climate goals.
U.S. lawmakers echoed Trump’s rhetoric, prioritizing national interests and economic concerns over global cooperation and collective climate action.
Several countries have aligned with the U.S. stance by emphasising the importance of fossil fuels in their economies. This includes the hosting country Azerbaijan and various right-wing governments in Europe, such as Hungarian Prime Minister Viktor Orbán, which contrasts with the commitments made by the European Union.
In contrast, Woepke Hoekstra, the returning Commissioner for Climate, Net-Zero, and Clean Growth, welcomed the progress made in climate finance and urged wealthier nations to make more commitments to combating climate change. Additionally, China and Brazil supported more ambitious climate goals and expressed their intention to increase investment in energy technologies aimed at reducing their greenhouse gas emissions.
The outcome of the negotiations is a compromise that leaves both developed and developing countries feeling dissatisfied. The final text remains unchanged from last year and lacks concrete follow-up actions. However, COP29 did achieve a significant agreement on climate finance, known as the New Collective Quantified Goal on Climate Finance. This goal aims to increase financial support for developing countries from USD 100 billion annually to USD 300 billion by 2035, which is much lower than the initial target of USD 1.3 trillion.
Countries have established common standards for a global carbon market, as outlined in Article 6 of the Paris Agreement. However, no agreement has been reached on the phase-out of fossil fuels, which will be revisited at the upcoming COP30 in Brazil.
Heating with Liquid Fuels brochure: A step towards a greener future for Europe's heating sector
As Europe confronts the pressing challenge of achieving its climate goals, the demand for sustainable solutions in the heating sector has become more essential than ever. The "Heating with Liquid Fuels" brochure represents a significant milestone in the effort to decarbonise Europe’s heating systems.The brochure is a collaborative document that outlines a shared vision for the future of heating in Europe. It combines the expertise of various industry stakeholders, including Eurofuel, ECFD, Fuels Europe, and UPEI, to present clear, actionable steps for decarbonising the heating sector.
A key message of the brochure is the importance of adopting a technology-neutral approach to achieve Europe’s climate goals. This approach encourages policymakers to avoid limiting specific fuels or technologies. Instead, they should concentrate on establishing ambitious and flexible targets that permit the use of the most appropriate solutions tailored to local conditions and energy needs.
The brochure also highlights the role of renewable liquid fuels, such as HVO (Hydrotreated Vegetable Oil) and FAME (Fatty Acid Methyl Ester), in enabling the decarbonisation of existing oil heating systems. To ensure a smooth transition to low-carbon heating, the brochure suggests a three-step approach:
Step 1: Maximise Boiler Efficiency
Step 2: Move to Hybrid Heating Systems
Step 3: Introduce Renewable Liquid FuelsTransitioning to low-carbon heating fuels will benefit the environment and create new opportunities for the European economy.
The heating sector currently supports hundreds of thousands of jobs, including those of installers, fuel distributors, and equipment manufacturers. Moving towards renewable liquid fuels and new heating technologies will generate even more green jobs across the continent.
The joint brochure outlines a clear pathway for decarbonising Europe’s heating systems. However, the success of this transition will heavily rely on support from policymakers. It is crucial for EU policymakers to implement the necessary financial incentives and establish regulatory frameworks that will facilitate the increased production and deployment of renewable liquid fuels.By adopting renewable liquid fuels, upgrading heating systems, and endorsing policy initiatives that encourage innovation, Europe can reach its climate-neutral goals while ensuring that everyone benefits from the energy transition.
The future of heating is green, and the "Heating with Liquid Fuels" brochure is designed to guide the way.