Decarbonisation:existing EU policy
Katinka van der Jagt
European Commission
DG CLIMA B.3 (Aviation, Maritime and Carbon Market)

Decarbonising Maritime Transport
EXPERT WORKSHOP
26-27 November 2018

The challenge of decarbonisation
Estimated growth of CO2 emissions from int. shipping v. reduction needs

Source: Discussion paper on GHG emission reduction
targets for international shipping; Öko-Institut & CE Delft forGerman Federal Ministry for the Environment, 20152

Different examples- MRV Regulation 2015/757- Directive on the deployment of alternative fuels
infrastructure (2014/94/EU)- Fuel Quality Directive and Renewable Energy
Directive- CO2 emissions heavy trucks and light road roadtransport

The challenge of decarbonisation
EU action addressing CO2 shipping emissionsRegulation (EU) 2015/757 establishes a system for monitoring, reporting and verificationof CO2 emissions and other relevant information from ships
Objective: Trigger the uptake of emission reductions measures by the removal of market
barriers, especially those linked to the lack of transparency
- Ships above 5000 GT performing maritime transport activities

- EEA related voyages and in EEA ports

- Annual reporting and publication of aggregated emissions data on a per ship basis

- Verification of data by independent, accredited verifier- First monitoring period 1 January 2018 – 31 December 2018:

The challenge of decarbonisation
EU action addressing CO2 shipping emissions (cont.)

EU MRV Foundation for any measure Provides reliable information on ship efficiency andcan help removing market barriers
 Drives forward the international debate

The challenge of decarbonisation
EU action addressing CO2 shipping emissions (cont.)

BunkerDeliveryNoteTankSoundingMonitoringPlanFlowMetersEmissionMeasurement

AnnualEmissions
ReportVerification

Centraldatabase

The challenge of decarbonisation
EU action addressing CO2 shipping emissions (cont.)
Submitmonitoring planand emissions
reports

Enforcement
measures (ifnecessary)
National
enforcement
authority
Provide a list of shipsthat may be in breachwith the regulation

Ship

Submit verifiedemissions
reports

EuropeanCommission

Verifier

Issue adocument ofcompliance

Compliance
Cycle
7The challenge of decarbonisation
EU action addressing CO2 shipping emissions (cont.)

EU MRV Foundation for any measure Provides reliable information on ship efficiency andcan help removing market barriers
 Drives forward the international debate

Directive on the deployment of alternative
fuels infrastructure (2014/94/EU)
In 2014, the EU has adopted the Directive on the deployment of alternative
fuels infrastructure (2014/94/EU), which..
 - Requires Member States to develop national policy frameworks for themarket development of alternative fuels and their infrastructure; - Foresees the use of common technical specifications for recharging and refueling stations; - Paves the way for setting up appropriate consumer information on
alternative fuels, including a clear and sound price comparisonmethodology.

Why Alternative Fuels in Shipping?
GHG emissions vs Air Pollution
GHG (Greenhouse Gases) - CO2 (Carbon Dioxide), CH4 (Methane),N2O(NitrousOxide),
HFCs(HydroFluorocarbons),
PFCs(Perfluorocarbons) and SF6 (Sulphur Hexafluoride)
Other Relevant Substances - NOx (Nitrogen Oxides), SOx(SulphurOxides),
NMVOC(Non-Methane
Volatile
OrganicCompounds), CO (Carbon Monoxide) and PM (Particulate Matter,
including Black Carbon).
Alternative fuels are excellent solutions for air pollution. However,from a GHG perspective, some have limited advantages andtherefore are transitory solutions to zero-carbon fuels needed.

Directive on the deployment of alternative
fuels infrastructure (2014/94/EU)
The Directive on the deployment of alternative fuels infrastructure(2014/94/EU) specifies specifically for the maritime sector:• Electricity supply for transport – shore-side [Article 4] to beinstalled as a priority in ports of the TEN-T Core Network, and inother ports, by 31 December 2025, unless there is no demand,and the costs are disproportionate to the benefits, including
environmental benefits.
• Naturalgas
supplyfor
WATERBORNEtransport[Art 6.1 – 6.2], at maritime ports throughout the TEN-T Core
Network by 31 December 2025 at the latest.

• Standards and technical specifications [Annex II]

Directive on the deployment of alternative
fuels infrastructure (2014/94/EU)
Article 4  Electricity supply for transport – shore-side• Member States shall ensure that the need for shore-side
electricity supply for inland waterway vessels and sea-going ships
in maritime and inland ports is assessed in their NPFs.
• Such shore-side electricity supply shall be installed as a priority
in ports of the TEN-T Core Network, and in other ports, by 31
December 2025, unless there is no demand, and the costs are
disproportionate to the benefits, including environmentalbenefits.

Directive on the deployment of alternative
fuels infrastructure (2014/94/EU)
Art 6.1 – 6.2  Natural gas supply for WATERBORNE transport
Member States shall ensure, through their NPFs, that an appropriate
number of refuelling points for LNG are put in place…:
at maritime ports to enable LNG inland waterway vessels or seagoing ships to circulate throughout the TEN-T Core Network by
31 December 2025 at the latest.
at inland ports to enable LNG inland waterway vessels or seagoing ships to circulate throughout the TEN-T Core Network by
31 December 2030 at the latest.

Directive on the deployment of alternative
fuels infrastructure (2014/94/EU)
AnnexII
Standards
andtechnical
European standards for shore-side electricityspecifications

Shore-sideelectricity
supplyfor
seagoing
ships
Shore-side electricity supply for seagoing ships, including the design,
installation and testing of the systems, shall comply with thetechnical specifications of the IEC/ISO/IEEE 80005-1 standard.
Shore-side electricity supply for inland waterway vessels
LNG refuelling points for waterborne vessels compatible with ISO/TC
67 European standards for natural gas supply
 LNG refuelling points for waterborne vessels compatible withISO/TC 67

GHG emissions trends in the main economic sectors
201415

Low-emission mobility• Low-emission mobility: an essential component of the shift to thelow-carbon, circular economy• Transport sector challenges••••

About one quarter of greenhouse gas emissions
Dependence on oil for more than 90% of its need
Major cause of air pollution in cities
Global competition and third countries' market access• Level of ambition for transport••••

GHG emissions at least 60% lower than in 1990 by mid-century, andfirmly on the path towards zero
Emissions of air pollutants to be drastically reduced without delay
Decrease oil import dependency
Increase innovation and competitivenessEU Strategy for low-emission mobility• Integrated and comprehensive approach, mix of policy
instruments, mutually supporting and reinforcing• Main levers for regulatory actions••••

Efficiency of the transport system
Low-emission alternative energy for transport
Zero-emission vehicles
Vehicle efficiency standards• Cross-cutting initiatives for an enabling environment

Scaling up the use of low-emission alternative energy• The transition to low-emission alternative energy intransport needs to accelerate, it will also contribute toEnergy Security• Effective framework to incentivise low-emission energy(including advanced biofuels, renewable electricity andsynthetic fuels) to be put in place• Transition of food-crop based biofuels to advanced biofuels• Infrastructure for alternative fuels needs to be rolled-out• Obstacles to electro-mobility need to be removedEU2020 climate and energy package: European Union passed

two major directives on bioenergy and biofuels in 2009: The Renewable Energy
Directive (2009/28/EC) and the Fuel Quality Directive (2009/30/EC)•••

Fuel Quality Directive

Renewable Energy Directive

FQD setting a greenhouse gas(GHG) reduction target for fuelsuppliers, requiring them to reduce
the GHG intensity of the fuel mix by
6% in 2020.
Both: introduced a set ofsustainability criteria•

Biofuels required to provide atleast a 35% GHG reduction
compared to fossil fuels

RED setting targets for renewableenergy consumption, including a
sub-target mandating 10% ofenergy used in transport to be
produced with renewable sources• Not: accounting for indirect
land use change (ILUC)
emissions  ILUC Directive(EU) 2015/1513

Cap on food-based biofuels

Transport fuel policy up to 2020
Fuel Quality Directive

Renewable Energy Directive• 6% GHG target by 2020
relative to fuel baseline in 2010
• Applicable to fuel suppliers• Implementation by April 2017
• Contributions:• 10% target for renewableenergy in transport by 2020
• Applicable to Member States• Contributions:

••
••

•

Biofuels
Fuels of non-biological origin
Low-carbon fossil fuels (CNG,LNG, LPG)
Upstream emission reductions(reduction of flaring andventing)Electricity•••

Biofuels
Renewable fuels of nonbiological origin
Electricity• Specific support for advanced
biofuels (e.g. biofuels produced
from waste and residues,cellulose) and electricity

Cap on food-based biofuels

The FQD and the RED set out the following
sustainability requirements:

For biofuels to count towards the greenhouse gas emission
reduction targets, they must meet certain sustainability
criteria to minimise the undesired impacts from theirproduction.
• - Greenhouse gas emissions from biofuels must be lower
than from the fossil fuel they replace – at least 50% (forinstallations older than 5 October 2015) and 60% for newerinstallations.
• - The raw materials for biofuels cannot be sourced fromland with high biodiversity or high carbon stock.

Recast of RED: RED II• - November 2016: European Commission package ‘Clean Energy
for all Europeans’ RED II proposal• - June 2018: final compromise EU institutions was agreed• - November 2018: EP approved new targets for renewables, EEand second generation biofuels confirming agreement RED II• NB FQD: No plans to extend the greenhouse gas reduction target
beyond the year 2020, addressing the decarbonisation oftransport fuels after 2020 via RED II.

Commission proposal for post-2020 policy on transport fuels
8%

7%

7%

6.7%

6.4%

6%

6.1%

5.8%
5.4%

5.0%

5%

4.6%
4.2%

4%

3.8%

3%

Food based biofuels

2%

1%

0%
2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

• Increasing the share of low carbon and renewable fuels in transport through an EU
blending mandate on fuel suppliers• Target level increasing over time from 1.5% energy share in 2021 to 6.8% in 2030
• Focus is on advanced and waste-based biofuels, power-to-gas/liquid, and renewableelectricity• Food and feed based biofuels don't count towards the transport target; theircontribution to the overall 27% target is phased down from 7% in 2021 to 3.8% in 2030.
• 2025 Review of GHG saving and innovation effects

Recast of RED: RED II
1. - overall EU target for Renewable Energy Sources (RES)
2. consumption by 2030 increased from 27% to 32%;
3. - a sub-target for RES in transport was introduced in the finalagreement: MS must require fuel suppliers a minimum of 14% of
the renewable energy in road and rail transport by 2030;
4. - Each MS to define Integrated National Energy and Climate Plans
following GLs Energy Union Governance Regulation.
• NB Fuels used in the aviation and maritime sectors are excluded
from the 14% obligation but these sectors can opt to contribute to
the target. The contribution of non-food renewable fuels supplied
to these sectors will count 1.2 times their energy content.

Feedstock of the advanced biofuels in
the RED II recast 2021-2030:
1. Feedstocks included in Annex IX are as follows:
2. »» Part A (i.e. advanced biofuels):
3. • Algae, if cultivated on land in ponds or photobioreactors;
4. • Biomass fraction of MSW from unsorted household waste;
5. • Bio-wastes separately collected from households;
6. • Biomass fraction of agro-industrial waste not fit for food or feed;
7. • Straw;
8. • Animal manure;9. • Sewage sludge;
10.• Palm oil mill effluent and empty palm fruit bunches;
11.• Tall oil pitch;• .

Feedstock of the advanced biofuels in
the RED II recast 2021-2030 cont:1. • Crude glycerine;
2. • Bagasse (sugar cane residue)
3. • Grape marcs and wine lees;
4. • Nut shells;
5. • Husks;
6. • Cobs cleared of kernels of corn;
7. • Biomass fraction of waste and residues from forestry and forest
industries;
8. • Other non-food cellulosic material, also includes industrial
residues after the extraction of
9. vegetable oils, sugars, starches and proteins;
10.• Other ligno-cellulosic materials.

CO2 emission standards for heavyduty vehicles in the EU:
1. On 17 May 2018, the European Commission presented alegislative proposal setting the first ever CO2 emission standards
for heavy-duty vehicles in the EU.
2. The proposed targets for average CO2 emissions from new lorries:
3. In 2025, 15% lower than in 2019 - mandatory and can beachieved using technologies that are already available on
the market.
4. In 2030, at least 30 % lower than in 2019 (indicative target,subject to review in 2022) - to incorporate additional informationon the new technologies needed to meet this target.

CO2 emission standards for heavyduty vehicles in the EU:
1. Scope: large lorries, which account for 65% to 70% of all CO2
emissions from heavy-duty vehicles -> 2022, the scope to beextended to include other vehicle types such as smaller lorries,buses, coaches and trailers

2. The proposal also includes a mechanism to incentivise the uptakeof zero- and low-emission vehicles, in a technology-neutral way:
3. System of super credits will reward those manufacturers who will
invest more in innovative technologies, while preserving theenvironmental integrity of the CO2 targets. It also includes zeroemission buses which are needed for cleaner air in cities.

CO2 emission standards for heavyduty vehicles in the EU:
1. On 8 November 2017, the European Commission presented alegislative proposal setting new CO2 emission standards forpassenger cars and light commercial vehicles (vans) in theEuropean Union for the period after 2020

2. The proposed targets are set for the EU-wide average emissionsof new cars and vans in a given calendar year from 2025 on, withstricter targets applying from 2030.
3. The proposal also includes a mechanism to incentivise the uptakeof zero- and low-emission vehicles, in a technology-neutral way.

CO2 emission standards for heavyduty vehicles in the EU:
1. incentivise the uptake of zero- and low-emission vehicles, in atechnology-neutral way:
2. Manufacturers achieving a share of zero- and low-emission
vehicles, which is higher than the proposed benchmark level of
15% in 2025 and 30% in 2030, will be rewarded in the form of aless strict CO2 target. For determining that share, account istaken of the emission performance of the vehicles concerned. As aconsequence, a zero-emission vehicle is counted more than a lowemission vehicle.

Possible take home:
1. - perhaps early to discuss a fuel standard, as the way forward forthe marine sector still needs to become more concrete and islikely hybrid
2. - strong incentives are needed for real transition, fuel standard
may not be sufficient to achieve this (California experience of 8y)
3. - other incentives and regulatory action should (also) be
considered
4. - compromise solutions may take long
5. - time-window is limited for showing progressThank you!
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