The Net Zero Industry Act shall define the Sustainable Alternative Fuels technologies as “Strategic Net Zero Technology”

The co-signatories would like to convey the industry’s recommendation to ensure a consistent definition of Sustainable Alternative Fuels in the Net Zero Industry Act. This definition needs to achieve two goals:

1) Align with other pieces of the EU policy framework on transport and fuels; and,

2) Ensure that all sustainable fuel technologies are adequately recognized order to decarbonise transport, encouraging innovation and the transition to renewable and low-carbonsolutions in the industrial sector.

Driven by EU policies, demand for Sustainable Alternative Fuels will rapidly rise in years to come, and – in the absence of a suitable domestic production capacity - supply shortages would force the EU to rely on foreign production. To ensure its energy security and independence, the Union must actively support the large-scale deployment of sustainable alternative fuels technologies and the development of resilient supply chains.

Therefore, the industry calls the policymakers to:

• Ensure consistency with EU legislation and provide certainty to investors, by aligning the definition of Sustainable Alternative Fuels to all fuels defined as sustainable by the Renewable Energy Directive (EU) 2018/2001 and to the low-carbon fuels to be determined by the upcoming revised Hydrogen and Gas Market Directive and do not limit their definition to ReFuel EU Aviation and FuelEU Maritime1;

• Include an explicit reference to Sustainable Alternative Fuels technologies in the list of strategic net-zero technologies to acknowledge their role in supporting and accelerating the transition of the transport and industry sectors.

The explicit and clear inclusion of Sustainable Alternative Fuels as a strategic technology for the European Union under the Article 3 of the Net Zero Industry Act would send a clear signal to the industry players, investors and innovators; encouraging them to focus their efforts on the development and adoption of these environmentally friendly solutions.

We thank you for your attention, your support and remain available, if necessary.

Signatories: CEWEP, eFuel Alliance, Eurogas, ESWET, Fertilizers Europe, FuelsEurope, and Methanol Institute.

1 Fuels production typically yields a range of different products and, for example, producing Sustainable Alternative Fuels will result in production of renewable and low-carbon fuels for road transport and chemical products. Including these fuels is key to leverage the benefits and synergies with other transportation sectors, allowing to exploit the full potential of these technologies for a net-zero transport future.