What Policy Framework for Synthetic Fuels Exist in Europe and what Impact do they have?

Authors

Tobias BLOCK¹, Algara CASTLE², Felina NEU^3
1eFuel Alliance e.V., Hamburg, ²eFuel Alliance e.V., Brussels, ³Kühne Logistics University, Hamburg

Summary

This publication provides a short summary and assessment of the European Union’s current policy framework regarding decarbonization in the transport sector, with focus on regulations addressing synthetic fuels. Some of those include Renewable Energy Directive, FuelEU Maritime, ReFuelEU Aviation, CO2 standards for vehicles and the energy taxation directive. Furthermore, it predicts the impact those regulations will have on the demand and implementation of synthetic fuels within this decade. Concluding that synthetic fuels will face a low demand up of just 10-12 TWh till 2030 due to the current EU quotas being to unambitious and not following a technologically open approach, therefore often excluding the high decarbonization potential of synthetic fuels. Additionally, this paper proposes policy improvements to use the full potential synthetic fuels can provide.