Energy security requires European-made low-carbon fuels

President von der Leyen's call during today's State of the Union address to accelerate Europe's energy independence is a timely reminder that energy security and decarbonisation must progress together.

While electrification will play a central role in reducing emissions and strengthening Europe's competitiveness, many sectors cannot be electrified easily or quickly. Renewable and low-carbon fuels, produced through innovative technologies, are therefore essential to support the transition and ensure no sector is left behind.

Investment in renewable and low-carbon fuels and related products is critical for the decarbonisation of aviation, maritime transport, heavy-duty road transport and industrial processes. These investments also strengthen Europe's energy resilience by reducing reliance on imported fossil fuels and expanding domestic energy production.

At the same time, Europe must preserve and transform its existing industrial base. Strong industrial assets, including refining and fuel manufacturing facilities, are strategic capabilities that can accelerate the scale-up of renewable and low-carbon fuels while supporting jobs, innovation and industrial competitiveness across Europe.

To ensure a greater strategic autonomy for Europe, it is equally important to develop a robust domestic production capacity for renewable and low-carbon fuels. Replacing dependence on imported fossil fuels with a new dependence on imported renewable and low-carbon fuels would not strengthen Europe's energy security. Europe must therefore create the conditions for investment in homegrown production, ensuring that renewable and low-carbon fuels are produced at scale within Europe and contribute to long-term energy independence.

Liana Gouta, Director General of FuelsEurope, stated, “President von der Leyen is right to underline the importance of accelerating Europe's energy independence. To achieve this, Europe must mobilise all available low-carbon solutions and maintain a strong industrial base capable of delivering them. Renewable and low-carbon fuels are indispensable for sectors where direct electrification is not yet viable at scale, while Europe's refining and fuel manufacturing assets provide a strategic foundation for their production. Europe should not replace one import dependency with another. We need policies that support investment in domestic production and enable renewable and low-carbon fuels made in Europe to play a central role in strengthening our competitiveness, energy security and climate ambitions.”

To strengthen Europe’s strategic autonomy and build a climate-neutral economy, continued investment in homegrown renewable and low-carbon technologies and fuels will be vital to delivering a secure, competitive and resilient energy system.