Eurofuel Newsletter #5
Dear Reader,
Welcome to this fifth edition of the Eurofuel newsletter.
As we navigate through a period of significant legislative and regulatory developments within the European Union, I am pleased to present our latest updates on the most pressing issues that will shape our industry and broader European policy landscape in the coming years.
With a new European Parliament finally up and running, the focus in Brussels is now concentrating on the appointment of the new Commissioners for the 2024-2029 legislative cycle. On 17 September, President Ursula von der Leyen presented her team for the next mandate unveiling the long-waited portfolios allocation. Among the Commissioners-designate of major interest for Eurofuel, Dan Jørgensen will deal with energy and housing, while Teresa Ribera has been put in charge of supervising the green transition along with the highly coveted competition portfolio. However, other Commissioners such as Wopke Hoekstra, (Climate) Stéphane Séjourné (Industrial policy) and Jessika Roswall (Environment & Circular Economy) will likely play a significant role in defining some of the initiatives that will impact our sector.
At the same time, as we prepare for the upcoming confirmation hearings in November to better assess how these new Commissioners envision the future of the EU Green Deal, we must as well take a look as the long-awaited Draghi report on the future of European Competitiveness, unpacking what is said s - or not- about heating and low-carbon energy solutions. All the while, updates are also coming on the Energy Taxation Directive after the Hungarian Council presidency proposed a new compromise text in an attempt to break the gridlock on this critical file.
Against the backdrop of these fundamental developments, we look forward to continuing our work in raising awareness on the role of low-carbon liquid fuels, ensuring that our industry is front and centre in the debate over the future of the EU energy system.
Happy reading.
Yours,
Dr Ernst-Moritz Bellingen
Von der Leyen presents her new Commissioners to deliver on a pragmatic and technology-neutral European Green Deal
On 17 September, President von der Leyen presented the new Commissioners team for the next legislative term (2024-2029) unveiling the final allocation of the portfolios.
The leader of the European Commission, during her introductory speech has reiterated her vision of a Europe committed to social fairness, citizen support, and the equitable implementation of agreements. Most notably, she emphasised a pragmatic, technology-neutral, and innovative approach to the European Green Deal’s objectives, making it a recurring theme in all the mission letters sent to the Commissioners designate.
One point has been made particularly clear: all the Commissioners have been asked to show a “very clear dedication to... low-carbon technologies”. Whether this commitment will be translated into tangible policy initiatives remains to be seen, but it is certainly a welcomed signal for our industry. Key names for Eurofuel will be Dan Jørgensen (DK, S&D), who will take on the crucial role of Commissioner for Energy and Housing, and Teresa Ribera (ES, S&D), nominated Executive Vice President (EVP) for Clean, Just, and Competitive Transition.
What’s on the agenda for Jørgensen? simplifying the governance of the EU’s Energy Union, boosting energy storage, creating an “Electrification Action Plan,” helping businesses decarbonize, and increasing carbon capture and storage. NGOs and green energy firms are thrilled, but enforcing these priorities won’t be a walk in the park, especially with resistance from some countries.
Teresa Ribera’s portfolio, on the other hand, will go beyond energy, covering competition, net-zero transitions, and economic transformation. Potential files on her agenda include the Clean Industrial Deal, Merger Control Guidelines, and the European Competitiveness Fund. However, her anti-nuclear stance has raised eyebrows among some MEPs and Member States, particularly those from nuclear-loving France. A point on which she be surely challenged during the confirmation hearings in November.
But it won’t be so easy to find the right doorbell to ring to discuss about energy and green transition. Wopke Hoekstra (NL, EPP), in charge of Climate, Net Zero, and Clean Growth, will lead efforts to implement the existing legal framework for 2030 and enshrine the 2040 target in the European Climate Law. Stéphane Séjourné (FR, Renew) as EVP for Prosperity and Industrial Strategy, and Jessika Roswall (SE, EPP) as Commissioner-designate for Environment, Water Resilience, and a Competitive Circular Economy, will play a significant role, especially in areas like eco-design, decarbonisation, and a just transition. This fragmented distribution of responsibility will certainly create challenges for those willing to engage with the new Commission.
Eurofuel priorities remain clear, with several initiatives deserving particular attention, including the European Affordable Housing Plan, which aims to double EU cohesion policy investments in new homes; the Action Plan for Affordable Energy Prices, designed to support households during the transition; and the Citizens Energy Package, which seeks to enhance citizen participation and address energy poverty. All in all, a busy agenda for the next 5 years!
Draghi’s Plan for EU Competitiveness lacks heat
On 9 September, Mario Draghi presented his comprehensive plan to boost EU competitiveness to the European Parliament, addressing key challenges such as the EU's static industrial structure and innovation issues. Decarbonisation shapes Draghi’s strategy, which he considers as an opportunity for European industry growth and a means for Member States to reduce dependencies on energy and raw materials by diversifying supply chains.
The following plenary session debate put the feasibility of Draghi’s proposal in terms of targets, regulation, and funding under the spotlights. Greens and Renew Europe supported Draghi’s call for increased investment in clean tech and renewable energies. In contrast, right-wing parties like ECR and ID advocated for reduced regulation and a climate policy more aligned with the realities of European industry. MEPs from the EPP generally agreed with Draghi’s recommendations, supporting green investments and reduced regulatory burdens for companies without taking a specific stance.
Regrettably, Draghi and his team overlooked completely the heating sector in favour of mainstream approach to electrification. Nonetheless, the report does contain several points of relevance for Eurofuel. While the focus is primarily on renewables and hydrogen, low-carbon fuels are indicated as a necessary component of the decarbonisation process.
Fuels are also a key issue mentioned in the report, in the context of aviation and maritime transport, where Draghi called for concrete actions to increase the market penetration of low-emission fuels to offset the slower-than-expected uptake of electric vehicles. This could serve as a boost to investments in the whole low-carbon fuels sector. Including low-carbon liquid fuels.
Finally, the report proposed significant changes to the European energy system that could inevitably affect our industry, including decoupling renewable energy prices from fossil fuel-sourced electricity, reducing energy taxation by setting a common maximum level of surcharges across the EU, and revising the governance of the Single Market for energy to ensure EU-level decision-making.
Overall, Draghi’s report is likely to become part of Von der Leyen’s agenda for the next mandate. However, his 800 billion investment plan to boost Europe’s industrial competitiveness is not going to be smooth sailing. Some Member States, like Germany, are already gearing up to oppose the idea of creating more common debt to fund this program.
On the other hand, multiple stakeholders and decision-makers in Brussels have already started to cherry pick their preferred solutions from the 400plus pages report, disattending Draghi’s call for a radical change to avoid a slow agony.
Commissioner-designate Dan Jørgensen receives green light from MEPs
Dan Jørgensen, the Commissioner-designate for Energy and Housing, received a positive response from MEPs following his confirmation hearing in the European Parliament on Tuesday, 5 November (EUROPE 13518/5). Jørgensen made a strong impression, with coordinators of the political groups from the Committee on Industry, Research and Energy (ITRE) and the Committee on Employment and Social Affairs (EMPL) voting in favor of his appointment by the required two-thirds majority. Only the Patriots for Europe group and about two-thirds of The Left MEPs opposed his nomination.
For European Socialists, Jørgensen’s confirmation is seen as a victory. Gaby Bischoff (S&D, German) praised his “excellent performance,” while Christian Ehler, the ITRE coordinator for the EPP group, acknowledged Jørgensen as a competent candidate who presented himself “in a reasonable and well-prepared manner” during the hearing. However, Ehler expressed disappointment that Jørgensen had not fully addressed the issue of hydrogen, particularly the delegated act on low-carbon hydrogen.
Supporters of nuclear power, such as Renew Europe's ITRE coordinator Christophe Grudler (French), were reassured by Jørgensen’s commitment to “technological neutrality.” Nonetheless, they noted some “inconsistencies” in his responses and expect further clarity on European nuclear financing.
The Role of Low-Carbon Liquid Fuels and Eurofuel's Transatlantic Cooperation
As Europe aims to be the first climate-neutral continent by 2050, its roadmap outlines ambitious emission reduction targets, grounded in the European Green Deal and the Paris Agreement.
This roadmap is not only about cutting emissions but also about ensuring a fair, accessible, and secure transition to cleaner energy. The EU’s climate strategy, underpinned by the European Climate Law and the Fit for 55 Package, mandates a 55% emissions reduction by 2030, setting a decisive course for net-zero by 2050.
In the heating sector, which accounts for approximately 50% of Europe’s energy demand, low-carbon liquid fuels offer a practical, efficient, and cost-effective solution. Roughly 15 million oil-fired heating systems remain in use across the continent, many in rural areas without access to natural gas infrastructure. Low-carbon liquid fuels provide a near-term answer to reducing emissions and preserving infrastructure, supporting a smooth, inclusive shift toward sustainability.
To advance technical expertise and foster international collaboration, Eurofuel recently participated in the National Oilheat Research Alliance (NORA) technical workshop in the United States. This collaboration reflects a shared commitment to technological innovation, safety improvements, and the transition to low-carbon solutions in heating across the Atlantic.
By joining efforts, Eurofuel and NORA are better equipped to influence energy and environmental policies, share best practices, and address common challenges in reducing emissions. The exchange of knowledge and strategies between Eurofuel and NORA highlights the global dimension of the climate challenge and underscores the potential of transatlantic partnerships to accelerate the adoption of low-carbon liquid fuels.
For households facing energy poverty, low-carbon liquid fuels offer an affordable path to reducing emissions, avoiding the high cost of replacing entire heating systems. This approach allows consumers to make incremental changes toward cleaner energy without significant financial strain.
Eurofuel, as a key advocate for low-carbon liquid fuels, has outlined a three-step approach to help Europe meet its 2050 climate goals:
Step 1: Maximise Efficiency
Encouraging the installation of modern oil-fired condensing boilers can reduce fuel consumption immediately, with a potential 30% cut in greenhouse gas emissions compared to older models.
Step 2: Move to Hybrid Heating Systems
Hybrid systems combine renewable sources like solar or biomass with low-carbon liquid fuels, creating a flexible solution that can reduce emissions while ensuring a reliable heat supply, even when renewable sources are intermittent.
Step 3: Introduce Renewable Liquid Fuels
Progressively phasing in carbon-neutral fuels allows for a balanced, sustainable approach to achieving net-zero emissions, with the goal of 100% adoption by 2050.
Europe’s path to carbon neutrality is both challenging and transformative. By including low-carbon liquid fuels in its roadmap and strengthening transatlantic partnerships, the EU is setting an example for global collaboration in the face of climate change.
Through the efforts of Eurofuel and NORA, Europe and North America are building a shared foundation for sustainable energy solutions. This balanced approach combines technological innovation, energy security, and affordability, paving the way for a carbon-neutral future that leaves no one behind.