Power-to-X for Applications - your P2X network
Fit for 55 needs more punch
Frankfurt, 6.12.2021. The EU climate package "Fit for 55" contains many good approaches for achieving the ambitious climate targets by 2030 and for the associated market ramp-up of hydrogen and its derivatives (power-to-X). Nevertheless, this needs to be tightened up in order to develop more punch. This is, in short, the assessment of the VDMA Power-to-X for Applications, which in a position paper now presented takes a detailed look at the effects of the "Fit for 55" package on the emerging hydrogen market and the climate targets.
In VDMA's view, significantly more renewable energy capacities are needed for successful sector integration. Although the Commission has recently raised the corresponding targets, the quotas for RFNBO (Renewable Fuels of Non-Biological Origins) in the revision of the Renewable Energies Directive (RED III) are still not high enough to stimulate sufficient investment in these fuels for transport. Yet more use of green hydrogen and derived fuels is an indispensable tool for reducing emissions. To ensure that sufficient hydrogen and eFuels are available in 2030, the Commission's planned 2.6 percent quota for these fuels should be brought forward to 2026 and doubled by 2030.
“When it comes to the maritime energy transition, the EU must now take the lead internationally”, says Peter Müller-Baum, Managing Director VDMA Power-to-X for Applications. Therefore, the proposal "FuelEU Maritime" should be supplemented by a separate reduction path that regulates maritime transport within the EU and leads to climate-neutral European shipping as early as 2045. The same applies to "ReFuelEU Aviation". The quotas for synthetic kerosene mentioned there should reflect the ambition and competence of the P2X industry. Accordingly, VDMA calls for the introduction of a new sub-target for synthetic fuels of 0.8 percent already for 2027 and a much more ambitious target of 2.5 percent for 2030.
Carbon pricing based on the polluter pays principle is arguably the most important component of European climate policy. "A high carbon price in the new emissions trading scheme for transport and buildings, combined with a minimum tax rate for sustainable alternative fuels of zero in all EU member states and for all transport sectors, could establish price parity with fossil fuels," says Peter Müller-Baum. Both the Fit for 55 package and the EU taxonomy for sustainable financing would have to be stringently based on life-cycle analyses in which all technologies are subjected to a holistic climate assessment, from the primary energy source to the end use - only this would ensure comparability.
and its derivatives.
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