Newsletter 4.2020
Dear reader,
Welcome to the fourth EUROFUEL newsletter of 2020. In this edition, we look more closely at the EU’s objective to relaunch the economy while seeking an ambitious climate agenda. While necessary, this approach needs to be balanced with a pragmatic strategy aimed first and foremost at preserving EU’s industrial competitiveness and jobs.
This will be crucial to ensure that all sectors can both decarbonise and thrive in such an uncertain period. For this to happen, a technology neutral approach acknowledging the contribution of all energy sources is necessary. We hope that taking on board all sectors to address the twin challenge of economic recovery and decarbonisation will be a priority of the German Presidency of the Council of the EU.
On our side, we are making the biggest efforts to communicate to policymakers the readiness of our sector to take up cleaner technologies as well as the essential role we play in providing heat to around 20 million households. To this end, we have developed an interactive webpage which has just been made available. The latter gathers’ contributions of liquid heating fuel professionals active along the entire value chain showcasing the best practices our sector is currently developing. I’d like to personally thank each of you for making the creation of this valuable resource possible!
Yours,
Dr Ernst-Moritz Bellingen
Push for green recovery grows
After the presentation of the Commission’s Recovery Plan at the end of May, discussions are continuing at the EU level on the measures needed to address the twin challenges of relaunching the economy while supporting a decarbonisation pathway for all the industrial sectors. A strong focus is currently given to the energy sector, for which the Commission is developing a variety of initiatives.
The issue was discussed in a dedicated EU Energy Ministers meeting on “Economic Recovery and the European Green Deal” held on 15 June. Member States “agreed that innovative energy technologies such as smart grids, hydrogen (particularly from renewable sources) and offshore as well as onshore renewable energy will be of great importance for Europe's job creation, competitiveness and decarbonisation”.
Ministers also emphasized that “investments in the renovation of buildings will have a key role for the broader economic recovery”, expressing a strong interest for the upcoming Renovation Wave strategy expected in September. The Commission is currently gathering stakeholder feedback through a public consultation. The latter is a great opportunity to provide policymakers with concrete examples on the solutions our industry is developing to decarbonise heating by bringing to the market innovative low carbon fuels. This is extremely important as the Commission is exploring measures to reduce the use of conventional fuels for heating, which would be counter-productive.
While the EU wants to show leadership for a green recovery, a strong push is coming also from other institutions. One of them is the International Energy Agency, which in June published a special report suggesting a set of policies to foster a global sustainable recovery. According to the Paris based agency, governments have a unique opportunity to boost economic growth, create millions of new jobs and put global greenhouse emissions into structural decline. Amongst the measures indicated, the IEA suggests governments to improve the energy efficiency of buildings and appliances as well as make the production of fuels more sustainable. Thanks to the availability of highly efficient condensing boilers and the development of low carbon fuels, these are objectives that our industry can deliver on.
The importance of supporting the production of more sustainable fuels has been acknowledged also by an independent study recently published by the European Commission: Energy Storage Study - Contribution to the security of electricity supply in Europe. The latter reminds from 2030 onwards the importance of developing of P2X technologies for indirect electrification, leading to the production of synthetic fuels such as e-gases and e-liquids from electrolysis, replacing their fossil counterparts in the industry, heating and mobility sectors.
Germany to shape the EU recovery plans
A major role in shaping the EU recovery plan will be played by Germany, who as of 1 July until the end of 2020 will hold the EU Council Presidency. This will give Berlin a leading role in finding a compromise amongst Member States on the Recovery Plan. Ensuring that the EU response is adequate to relaunch the economy will be the number one objectives of the German Presidency.
While a detailed programme has not been published yet, on 24 June the German Government presented a set of high-level objectives which will be pursued in the next six months:
- Coping with the corona consequences and rebuilding the economy
- Agree on the next Multiannual financial framework for the period 2021-2027
- Raise ambitions on climate protection
Germany has also made clear that it will aim at scaling up the production of clean energy technologies. An example is the recent Hydrogen Strategy presented by German government which promises to promote ‘green’ hydrogen with €7 billion of investments. With this initiative, Berlin is trying to influence the publication of the EU Hydrogen Strategy, expected on 8 July. Therefore, it seems that making the case for the transformation of the energy sector will be one of the priorities for German Council Presidency.
Our commitment for a clean energy future
Thanks to the contribution of several members and professionals across the heating oil industry, Eurofuel has just released an interactive webpage showcasing the best practices of our industry in developing low carbon heating fuels.
Including interviews, infographics and videos, the webpage clearly shows the concrete solutions provided by our sector to decarbonise heating. Now it is the moment to amplify our messages disseminating the webpage to all the relevant stakeholders both at national and European level.