EU’s climate and competitiveness goals are at risk if the fuels industry is not included in the strategic sectors of the Clean Industrial Deal
The CEOs and leading executives of the EU fuel manufacturing industry have warned EU policymakers that, without a business case for the industry’s transformation, the future of the fuels industry is at stake.
Here is what is at risk if the fuel manufacturing industry is not included in the Clean Industrial Deal (CID):
- Investments in low-carbon and renewable fuels and industrial products
- The energy security of Europe
- Resilience of economies and critical infrastructure
- Quality jobs and social coherence
- Competitive industrial value chains
The EU fuel manufacturing industry fully supports the EU’s ambition to achieve climate neutrality by 2050, but the industry needs supportive policy so that it can help the EU meet its ambition. Luis Cabra, President of FuelsEurope, stated: “The EU fuel manufacturing industry is instrumental to the decarbonisation of the transport sector (it currently supplies 97% of the energy needed to move people and goods), the chemical & petrochemical industry which relies for more than 50% on feedstock supplied by our industry, and many others sectors that depend on its products. In order for the industry to transition, it needs a clear, comprehensive, and actionable strategy to ensure it is economically sustainable.”
Currently, liquid fuels and feedstock for the petrochemical industry are mostly of fossil origin, but by leveraging innovation they are shifting towards low-carbon and renewable products. Combined with other low-carbon solutions such as electricity and hydrogen, they will enhance energy security, resilience, social impact, industrial competitiveness and economic efficiency.
Europe cannot afford to lose the investments needed for the transition of its fuel manufacturing industry. A Clean Industrial Deal that ignores the strategic importance of the fuel manufacturing industry may have unforeseen consequences. The competitiveness of entire industrial value chains linked to fuels and products supply (i.e. chemical & petrochemical, automotive, aviation, maritime, military), security of EU energy supply, quality jobs, and the very achievement of the EU climate and circular economy goals will all be at stake.
Liana Gouta, Director General of FuelsEurope, commented: “To ensure that the sector’s transition is successful and contributes to the EU’s journey towards climate neutrality, we call on Europe’s leaders to recognize the fuel manufacturing industry as an essential and strategic sector by including it in the Clean Industrial Deal with a dedicated action plan for its transition.”
The clock is ticking, but it is not too late, and we stand ready to collaborate with the European Commission and other stakeholders in the development and implementation of this strategic plan.
- Read here the full letter signed by the CEOs and leading executives of the Fuels Manufacturing Industry.