COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Clean Power for Transport: A European alternative fuels strategy
Date: 2013-01-24
Institutions: European Commission
Subjects: import (EU), petroleum product, self-sufficiency in energy, substitute fuel, transport infrastructure

EUROPEAN 
COMMISSION 

Brussels, 24.1.2013  
COM(2013) 17 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Clean Power for Transport: A European alternative fuels strategy 

{SWD(2013) 4 final} 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Clean Power for Transport: A European alternative fuels strategy 

1. 

INTRODUCTION 

Europe is heavily dependent on imported oil for its mobility and transport: in 2010, oil 
counted for 94% of energy consumed in transport, with 55% the largest consumer, 84% of it 
imported, with a bill of up to € 1 billion a day 
in 2011, leading to a significant deficit in the 
EU trade balance of around 2.5% of GDP. Our supply of oil, and thus our mobility, depend to 
a large degree on politically unstable regions raising security of supply concerns. Price hikes 
driven by speculation on the impact of oil supply disruptions have cost the European economy 
an additional € 50 billion per year  over the last four years.  

The effect of the oil dependency on the European economy is too large to neglect – the Union 
must act to end it. A strategy for the transport sector to gradually replace oil with alternative 
fuels and build up the necessary infrastructure could bring savings on the oil import bill 
of € 4.2 billion per year in 2020,  increasing to € 9.3 billion per  year in 2030, and another € 1 
billion per year from dampening of price hikes. 

Support  to  the  market  development  of  alternative  fuels  and  investment  in  their 
infrastructure in Europe will boost growth and a wide range of jobs in the EU. Research 
convened by the European Climate Foundation finds that 'greening' cars could generate about 
700,000 additional jobs by 2025. Vigorous action of the Union as a first-mover on innovative 
alternative fuel solutions (for instance on batteries and powertrains) will also create new market 
opportunities  for  European  industry  and  bolster  Europe's  competitiveness  on  the  emerging 
global market.  

Whilst  further  efficiency  improvements  spurred  by  EU  regulations  on  vehicle  emissions  of 
CO2  will  continue  to  represent  the  lowest  hanging  fruits  in  the  short  to  medium  term,  low-
CO2 alternatives to oil are also indispensable for a gradual decarbonisation of transport, 
a  key  objective  of  the  Europe  2020  strategy  for  smart,  sustainable  and  inclusive  growth1, 
towards the target of a 60% reduction of CO2 emissions from transport by 2050 set out in the 
"Roadmap  to  a  Single  European  Transport  Area  –  Towards  a  Competitive  and  Resource 
Efficient  Transport  System"  (2011  White  Paper  on  Transport)2.  Such  fuels  are  often  also 
beneficial in helping urban areas to meet Union air quality obligations.  

Powered  two-wheelers,  using  different  alternative  fuels,  could  also  contribute  to  these 
objectives. 

At present, the market development of alternative fuels is still held back by technological and 
commercial short-comings, lack of consumer acceptance and missing adequate infrastructure. 
The current high cost of innovative alternative fuel applications is largely a consequence of 
these  shortcomings.  Initatives  to  support  alternative  transport  fuels  exist  at  both  EU  and 
national level but a coherent and stable overarching strategy with an investment friendly 
regulatory framework needs to be put in place.  

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COM (2010) 2020 
COM (2011) 144 

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For these reasons, this Communication sets out a comprehensive alternative fuels strategy and 
the road to its implementation covering all modes of transport. It aims at establishing a long-
term  policy  framework  to  guide  technological  development  and  investments  in  the 
deployment of these fuels and give confidence to consumers. 
An  accompanying  legislative  proposal3  provides  a  general  direction  for  the  development  of 
alternative  fuels  in  the  Single  European  Transport  Area.  Member  States  would  have  the 
flexibility to develop policy frameworks for the market development of alternative fuels in their 
national context. The proposal also sets binding targets for the necessary infrastructure build-up, 
including common technical specifications. For electric recharging points, the proposal provides 
a single connector solution ensuring interoperability across the EU and certainty for the market. 

The strategy proposed in this Communication builds on substantial work with industry, public 
authorities and civil society - in the European Expert Group on Future Transport Fuels4,5, the 
Joint Expert Group Transport & Environment6, CARS 217, public consultation8, and studies9. 

For a long time the Union has invested in research and development into alternative fuels. The 
Commission's  proposal  for  energy  taxation  based  on  CO2  emissions  and  energy  content10 
supports alternative fuels. EU legislation limiting the CO2 emissions from cars and vans11 has 
stimulated  industry  to  develop  low-CO2  alternative  fuel  technologies.  However,  previous 
European  initiatives  supporting  alternative  fuels12,  including  market  quota13  and  favourable 
taxation14, have been followed up in uneven and disjointed ways.  

Some Member States have adopted ambitious targets on the deployment of alternative fuels 
and  taken  initiatives  on  infrastructure15  with  some  progress  seen.  In  other  Member  States, 
discussions  on  initiatives  have  only  started  recently  and  progress  is  slow.  But  there  is  a 
common  trend  throughout  the  European  Union  to  use  the  potential  of  alternative  fuels  in 
transport. Different technological choices in different parts of Europe, however, have led to a 

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12 

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14 

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of 

on 

21 

the 

June 

High 

Final 

fuels, 

2011: 

2012: 

Group 

Report, 

22  May 

alternative 

11  August 

Joint  Expert  Group  Transport  &  Environment, 

the  European  Expert  Group  on  Future  Transport  Fuels,  25  January  2011 

the  European  Expert  Group  on  Future  Transport  Fuels,  20  December  2011, 

COM (2013) 18 
Report  of 
http://ec.europa.eu/transport/urban/cts/doc/2011-01-25-future-transport-fuels-report.pdf 
Report  of 
http://ec.europa.eu/transport/urban/cts/future-transport-fuels_en.htm 
Report 
http://ec.europa.eu/transport/urban/cts/doc/jeg_cts_report_201105.pdf 
CARS 
Level 
http://ec.europa.eu/enterprise/sectors/automotive/files/cars-21-final-report-2012_en.pdf 
Public  Consultation 
http://ec.europa.eu/transport/urban/consultations/2011-10-06-cts_en.htm 
http://ec.europa.eu/transport/urban/studies/doc/2011-11-clean-transport-systems.pdf 
COM(2011)169 
Regulation (EC) No 443/2009 of the European Parliament and of the Council of 23 April 2009 setting 
emission performance standards for new passenger cars as part of the Community's integrated approach 
to  reduce  CO2  emissions  from  light-duty  vehicles,  OJ  L  140,  5.6.2009,  p.  1  and  Regulation  (EU) 
No 510/2011  of  the  European  Parliament  and  of  the  Council  of  11  May  2011  setting  emission 
performance standards for new light commercial vehicles as part of the Union's integrated approach to 
reduce CO2 emissions from light-duty vehicles, OJ L 145, 31.5.2011, p. 1. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  Economic  and 
Social Committee and the Committee of the Regions on alternative fuels for road transportation and on 
a set of measures to promote the use of biofuels, COM (2001) 547 
Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion 
of the use of biofuels or other renewable fuels for transport, OJ 123, 17.5.2003, p. 42. 
Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the  Community  framework  for  the 
taxation of energy products and electricity, OJ L 283, 31.10.2003, p. 51. 
Impact Assessment SWD(2013) 5 and related Summary SWD(2013) 6   

20  October 

2011: 

– 

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fragmentation of the internal market, creating technology border lines inhibiting the mobility 
of alternatively fuelled vehicles across Europe. Market penetration is hampered by the lack of 
infrastructure  and  common  technical  specifications,  and  requires  additional  specific  policy 
measures.  

Europe-wide coordination is needed to ensure proper functioning of the internal market and 
large-scale  deployment  of  alternative  fuels.  A  stable  policy  framework  with  binding  targets 
for  infrastructure  build-up  is  essential  to  attract  private  investment  into  alternative  fuel  and 
infrastructure roll-out, without burdening public budgets. Public intervention creating a clear 
regulatory framework should ensure consumer trust in the early stages of market take-up and 
complement the significant efforts already being made by Member States and industry.  

2. 

A COMPREHENSIVE MIX OF ALTERNATIVE FUELS 

A  consistent  long-term  strategy  on  alternative  fuels  has  to  meet  the  energy  needs  of  all 
transport  modes  and  be  consistent  with  the  EU  2020  strategy,  including  decarbonisation. 
However,  the  alternatives  available  and  their  cost  differ  between  modes.  The  benefits  of 
alternative  fuels  are  initially  larger  in  urban  areas  where  pollutant  emissions  are  of  great 
concern and in freight transport where alternatives have reached a sufficient level of maturity. 
For  certain  modes  of  transport,  in  particular  long-distance  road  freight  and  aviation,  limited 
alternatives are available. There is no single fuel solution for the future of mobility and all 
main  alternative  fuel  options  must  be  pursued,  with  a  focus  on  the  needs  of  each  transport 
mode. 

A strategic approach for the Union to meet the long-term needs of all transport modes 
must therefore build on a comprehensive mix of alternative fuels. All options need to be 
included  in  the  strategy  without  giving  preference  to  any  particular  fuel,  thereby  keeping 
technology  neutrality.  EU-wide  availability  and  common  technical  specifications  should  be 
provided for all alternative fuels presented in table 1.  

Table 1: Coverage of transport modes and travel range by the main alternative fuels 

Security of energy supply to transport is warranted by the wide diversification of sources for 
the different alternative fuels, in particular through the use of the universal energy carriers of 
electricity and hydrogen, and the close link to renewable energy sources. 

2.1. 

LPG (Liquefied Petroleum Gas)  

LPG  (Liquefied  Petroleum  Gas)  is  a  by-product  of  the  hydrocarbon  fuel  chain.  Its  use  in 
transport  increases  resource  efficiency.  Currently,  it  derives  from  crude  oil  and  natural  gas; 
and in the future possibly also from biomass. Currently, gas (natural gas as well as LPG) is 

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being flared of in huge quantity  16 (140 billion cubic meter in 2011). LPG is widely used in 
Europe, accounting for 3% of motor fuels and powering 9 million cars. LPG infrastructure is 
well  established,  with  some  28,000  dispensing  sites  in  the  EU  but  with  a  very  uneven 
distribution  across  the  Member  States.  Its  advantage  consisting  in  producing  low  pollutant 
emissions, however, has been diminishing as the EURO standards have progressed to lower 
general emission limits. There remains, however, a clear advantage in particulate emissions. 
LPG might still expand its market share but will likely remain a niche market. 

Natural gas including biomethane 

2.2. 
Natural  gas  can  be  supplied  from  large  fossil  fuel  reserves17,  from  biomass  and  waste  as 
biomethane, where production should come from sustainable sources, and in future also from 
"methanisation" of hydrogen generated from renewable electricity18. All can be injected into 
the  natural  gas  grid  for  supply  from  a  single  network.  Natural  gas  offers  a  long-term 
perspective in terms of security of supply to transport and a large potential to contribute to the 
diversification of transport fuels. It also offers significant enviromental benefits, in particular 
when  it  is  blended  with  biomethane  and  provided  that  fugitive  emissions  are  minimised. 
Natural gas also presents an advantage in lower emissions. 

LNG (Liquefied Natural Gas) 

Natural  gas  in  liquefied  form  (LNG)  with  high  energy  density  offers  a  cost-efficient 
alternative  to  diesel  for  waterborne  activities  (transport,  offshore  services,  and  fisheries), 
trucks and rail, with lower pollutant and CO2 emissions and higher energy efficiency. LNG is 
particularly suited for long-distance road freight transport for which alternatives to diesel are 
extremely limited. Trucks might be able to meet the more stringent pollutant emission limits 
of future EURO VI standards cost-efficiently. 

LNG  is  also  an  attractive  fuel  option  for  vessels  in  particular  to  meet  the  new  limits  for 
sulphur content in marine fuels decreasing from 1 % to 0.1 % from 1 January 2015 in Sulphur 
Emission Control Areas (SECAs) in the Baltic Sea, North Sea and English Channel as set by 
the International Maritime Organisation (IMO)19. These obligations will be relevant for about 
half  of  the  10,000  ships  currently  engaged  in  intra-EU  shipping.  LNG  is  an  attractive 
economic  alternative  also  for  shipping  outside  SECAs,  where  sulphur  limits  will  decrease 
from 3.5% to 0.5% from 1 January 2020, and globally. 

Lack of fuelling infrastructure and common technical specifications on refuelling equipment 
and safety regulations for bunkering hamper market uptake20. LNG in shipping, on the other 
hand, could be economically viable, with current EU prices considerably lower than for heavy 
fuel oil and low sulphur marine gasoil, and prospects of increasing spreads in future.  

LNG development into a global commodity can improve security of energy supply in general 
by boosting the use of natural gas as fuel for transport. LNG use in transport can also increase 
the value of gas otherwise flared. 

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World bank http://www.worldbank.org/en/news/2012/07/03/world-bank-sees-warning-sign-gas-flaring-increase 
IEA, World Energy Outlook 2011; natural gas: http://www.iea.org/aboutus/faqs/gas/ 
http://www.research-in-germany.de/46100/2010-05-06-storing-green-electricity-as-natural-
gas,sourcePageId=8240.html 
Directive 2012/33/EU of the European parliament and of the Council of 21 November 2012 amending 
Council Directive 1999/32/EC 
North European LNG infrastructure project; final report May 2012 

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CNG (Compressed Natural Gas):  

Natural  gas  vehicle  technology  is  mature  for  the  broad  market,  with  close  to  1  million 
vehicles on the road in Europe and around 3,000 filling stations. Additional refuelling stations 
could easily be supplied from the existing dense natural gas distribution network in Europe, 
provided the quality of gas is sufficient for CNG vehicles. 

CNG  vehicles  have  low  pollutant  emissions  and  have  therefore  rapidly  gained  ground  in 
urban  fleets  of  buses,  utility  trucks  and  taxis.  Optimised  gas-only  vehicles  can  have  higher 
energy efficiency. 

An economically viable market development could be expected by private initiatives as CNG 
vehicles are competitive with conventional vehicles in price and performance, and natural gas 
is cheaper than petrol and diesel. But public intervention is necessary to avoid fragmented EU 
level markets and to enable EU-wide mobility for CNG vehicles. 

GTL (Gas-To-Liquid)  

Natural  gas  can  also  be  transformed  to  a  liquid  fuel  by  first  decomposing  it  to  a  "synthesis 
gas",  consisting  of  hydrogen  and  carbon  monoxide,  and  then  by  refining  to  a  synthetic  fuel 
with  the  same  technical  characteristics  as  conventional  fuels,  fully  compatible  with  existing 
combustion engines and fuel infrastructure. Synthetic fuels can also be produced from waste 
feedstock.  They  improve  the  security  of  supply  and  reduce  pollutant  emissions  of  present 
vehicles. Moreover they promote advanced engine technologies of higher energy efficiency. 
High cost, however, presently limits market take-up. 

2.3 

Electricity 

Electric vehicles (EVs), using a highly efficient electric motor for propulsion, can be supplied 
by  electricity  from  the  grid,  coming  increasingly  from  low-CO2  energy  sources.  Flexible 
recharging  of  vehicle  batteries,  at  times  of  little  demand  or  ample  supply,  supports  the 
integration of renewable energy into the power system. EVs emit no pollutants and no noise 
and  are  therefore  particularly  suited  for  urban  areas.  Hybrid  configurations,  combining 
internal  combustion  engines  and  electric  motors,  can  save  oil  and  reduce  CO2  emissions  by 
improving the overall energy efficiency of propulsion (up to 20%) but are, without external 
recharging possibilities, not an alternative fuel technology.  

The technology of electric vehicles is maturing, and the deployment of EVs is picking up. 
Member States aim to have 8-9 million EVs on the road by 2020. The main issues are high 
cost,  low  energy  density  and  heavy  weight  of  batteries.  These  limit  the  driving  range  of 
vehicles  considerably.  Normal  recharging  takes  several  hours.  Fast,  possibly  inductive 
recharging  or  battery  swapping  can  alleviate  the  problem.  Improvements  in  battery 
technology  are  essential  for  the  market  take-up  of  EVs.  Electric  two-wheelers  share  all  the 
assets of EVs and can support their broad market penetration. 

Lack of recharging points, with a common plug, is a major obstacle to market uptake. They 
would need to be located at home, at the workplace and also in public spaces. At present, the 
majority  of  Member  States  do  not  have  sufficient  number  of  publicly  accessible  recharging 
points,  and  have  not  announced  policies  to  develop  an  adequate  network  of  recharging 
facilities. 

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EVs can also be used for electricity storage and grid stabilisation and, in order to allow for a 
flexible electricity pricing system based on demand/supply, a controlled interaction with the 
electricity network will be needed. 

Electricity can supply clean power also to waterborne transport. Shore-side electricity use by 
ships berthed at ports has been recommended where air quality or noise limits are exceeded21.  

2.4.  Biofuels (liquid) 

Biofuels  are  currently  the  most  important  type  of  alternative  fuels,  accounting  for 
4.4%22  in  EU  transport.  They  can  contribute  to  a  substantial  reduction  in  overall  CO2 
emissions, if they are produced sustainably and do not cause indirect land use change. They 
could  provide  clean  power  to  all  modes  of  transport.  However,  supply  constraints  and 
sustainability considerations may limit their use. 

Biofuels  can  be  produced  from  a  wide  range  of  feedstock  through  technologies  in  constant 
evolution  and  used  directly  or  blended  with  conventional  fossil  fuels.  They  include 
bioethanol,  biomethanol  and  higher  bioalcohols,  biodiesel  (fatty-acid  methyl  ester,  FAME), 
pure  vegetable  oils,  hydrotreated  vegetable  oils,  dimethyl  ether  (DME),  and  organic 
compounds.  

First  generation  biofuels  are  based  on  food  crops  and  animal  fats.  They  mainly  include 
biodiesel and bioethanol. In order to mitigate against possible impacts of some biofuels, the 
Commission  has  proposed23  to  limit  the  amount  of  first  generation  biofuels  that  can  be 
counted towards the Renewable Energy Directive24 targets to 5%, and increased the incentives 
for advanced biofuels such as those made from ligno-cellulosic biomass, residues, waste, and 
other non-food biomass, including algae and microorganisms. Post 2020, the Commission is 
of the opinion that only the latter biofuels should receive public support. 

Liquid  biofuels  commercially  available  today  are  mainly  "first  generation"  biofuels.  Blends 
with  conventional  fossil  fuels  are  compatible  with  the  existing  fuel  infrastructure,  and  most 
vehicles and vessels are compatible with the blends currently available (E10 - petrol with up 
to  10%  bioethanol  and  diesel  with  up  to  7%  FAME  biodiesel  content).  Higher  blends  may 
require  minor  adaptations  of  power  trains,  and  corresponding  fuel  standards  need  to  be 
developed. High-level petrol-ethanol blend containing 85% ethanol (E85) is used in only few 
Member States in flexible fuel vehicles (FFVs) that can also use lower blends. 

Consumer acceptance of biofuels has been hampered by the lack of coordinated action across 
Member  States  when  introducing  new  fuel  blends,  the  lack  of  common  technical 
specifications, and the lack of information on the compatibility of new fuels with vehicles. 

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Commission  Recommendation  of  8  May  2006  on  the  promotion  of  shore  side  electricity  for  use  by 
ships at berth in Community ports (2006/339/EC) 
Source: http://ec.europa.eu/energy/publications/doc/2012_energy_figures.pdf (data relating to 2010) 
COM  (2012)  595  -  Proposal  for  a  directive  of  the  European  Parliament  and  of  the  council  amending 
Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC 
on the promotion of the use of energy from renewable sources 
Directive  2009/28/EC  of  the  European  Parliament  and  of  the  Council  of  23  April  2009  on  the 
promotion  of  the  use  of  energy  from  renewable  sources  and  amending  and  subsequently  repealing 
Directives 2001/77/EC and 2003/30/EC, OJ L 140, 5.6.2009, p. 16. 

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Some  biofuels  such  as  hydro-treated  vegetable  oils  can  be  blended  at  any  ratio  with 
conventional  fuels  and  are  fully  compatible  with  existing  refuelling  infrastructure  and  road 
vehicles, vessels, locomotives, and planes for up to 50% blends.  

For  aviation,  advanced  biofuels  are  the  only  low-CO2  option  for  substituting  kerosene.  The 
compatibility  of  bio-kerosene  with  today's  planes  has  been  proven.  Cost,  however,  has  to 
become  competitive.  The  'Flightpath  2050'25  initiative  aims  at  75%  reduction  in  CO2 
emissions and 90% reduction in nitrogen oxide (NOx) emissions. 

2.5. 

Hydrogen  

Hydrogen is a universal energy carrier and can be produced from all primary energy sources. 
It can serve as transport fuel and as storage medium for energy from solar and wind power. Its 
use  therefore  has  the  potential  to  improve  the  security  of  energy  supply  and  reduces  CO2 
emissions. Hydrogen is most efficiently deployed in a fuel cell which is twice as efficient as a 
combustion engine. It may also be used as feedstock to produce liquid fuels of various kinds 
that can be blended in or substitute normal petrol and diesel fuels. 

The  technology  for  hydrogen  fuel  cell  vehicles  is  maturing,  and  is  being  demonstrated  in 
passenger cars, city buses26, light vans and inland ship applications. They have performance, 
range  and  refuelling  times  comparable  to  gasoline  and  diesel  vehicles.  Presently  about  500 
vehicles are in operation, and around 120 hydrogen refuelling stations in place. Industry has 
announced  a  roll-out  of  vehicles,  including  hydrogen  powered  two-wheelers,  for  the  next 
years,  and  several  Member  States  plan  for  hydrogen  refuelling  networks.  European  type 
approval regulation includes hydrogen vehicles. 

The  main  issues  are  high  cost  of  fuel  cells  and  the  absence  of  a  refuelling  infrastructure 
network.  Industry  studies  indicate  that  costs  can  be  reduced  to  the  levels  of  conventional 
petrol and diesel vehicles by 202527.  

Ships  and  vessels  can  use  clean  power  supply  by  hydrogen-supplied  fuel  cells.  Small  boats 
have  run  on  hydrogen  while  larger  vessels  would  mainly  use  auxiliary  power  supplied  by 
hydrogen fuel cells when they are at berth. Fuel cells operated with hydrogen could replace 
diesel engines in trains.  

3 

PRIORITY FIELDS FOR FURTHER EU ACTION  

Priorities for further action need to be set according to the stage of technological maturity and 
market  development  as  well  as  future  perspective  of  the  different  fuels,  focussing  on 
infrastructure,  technical  specifications,  consumer  information,  co-ordination  of  public 
expenditures to reduce costs and improve impacts, and R&D. 

3.1  Addressing alternative fuels infrastructure  
The  proposal  for  a  "Directive  on  the  deployment  of  alternative  fuels  infrastructure"28  is  a 
major step to solve the "chicken and egg" problem where alternative fuel infrastructure is not 

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Flightpath 2050, Europe’s Vision for Aviation. Report of the High Level Group on Aviation Research. 
Luxembourg: Publications Office of the European Union, 2011.  
http://www.global-hydrogen-bus-platform.com/ 
“A portfolio of power-trains for Europe: a fact-based analysis. The Role of Battery Electric Vehicles, 
Plug-in Hybrids and Fuel Cell Electric Vehicles”, McKinsey & Company, 2010 
COM(2013) 18 

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built  as  there  is  an  insufficient  number  of  vehicles  and  vessels,  the  manufacturing  industry 
does  not  produce  them  at  competitive  prices  as  there  is  insufficient  consumer  demand,  and 
consumers  in  consequence  do  not  purchase  them.  This  proposal  provides  for  sufficient 
infrastructure coverage to ensure economies of scale on the supply side and network effects 
on  the  demand  side.  It  focuses  on  the  fuels  where  failures  of  market  coordination  are 
particularly relevant, that is electricity, hydrogen  and natural  gas (LNG  and  CNG). Without 
such an action all other efforts to promote alternative fuels risk remaining ineffective. 

The Commission has initiated work towards a comprehensive strategy on LNG for shipping, 
involving  in  particular  the  European  Maritime  Safety  Agency  (EMSA)  and  representatives 
from industry. This topic is addressed in an accompanying Staff Working Document29. 

The  investment  in  the  build-up  of  alternative  fuels  infrastructure  (estimated  at  €  10  billion) 
will pay back with the market take-up. Direct public funding for infrastructure build-up is not 
needed if Member States use the wide range of policy tools at their disposal, such as building 
permissions, concessions, procurement regulations, access and charging regulations and non-
financial  incentives.  European  Union  funds,  on  the  other  hand,  are  available  for  the  market 
development of alternative fuels and the build-up of their infrastructure. 

Moreover,  a  market-take  up  for  gaseous  alternative  fuels  will  also  create  an  incentive  to 
reduce hydrocarbons' venting and flaring which would in turn create supply savings as well as 
climate and environmental benefits.30 

3.2  Developing common technical specifications 

Most  urgent  is  the  implementation  of  common  technical  specifications  in  the  Union  for  the 
interface between EVs and recharging points. The lack of an agreement on a "common plug" 
is  now  considered  one  of  the  heaviest  impediments  to  the  broader  market  uptake  of  EVs  in 
Europe31.  

Common  technical  and  safety  specifications  are  also  needed  for  hydrogen,  CNG  and  LNG 
refuelling  points  and  for  the  injection  of  biomethane  into  the  natural  gas  grid.  For  biofuels, 
high blend standards should be formulated. 

The proposed infrastructure Directive addresses the key issues of standards and requires the 
implementation of common technical specifications for alternative fuel infrastructures. 

3.3 

Addressing consumer acceptance  

Privileged  access  rights,  including  charging,  e.g.  in  urban  access  restriction  zones,  are 
effective  non-financial  incentives  to  use  alternative  fuel  vehicles.  Adressing  this  subject  is 
considered for the urban mobility actions announced in the 2011 Transport White Paper. 

Information campaigns and large-scale demonstration projects should improve acceptance of 
new technology concepts and inform citizens. Horizon 2020 will support these activities. 

Harmonisation of consumer information on fuel quality and vehicle compatibility and on the 
availability of recharging/refuelling points, as well as on environmental, financial and safety 

29 
30 

31 

EN 

SEC (2013) 4 
It  is  estimated  by  the  World  Bank  that  the  annual  volume  of  natural  gas  being  flared  and  vented 
worldwide  each  year  is  about  110 billion  cubic  meters (about  3  %  of  all  gas  marketed  in  the  world), 
enough 
Italy, 
the  annual  consumption  of  Germany  and 
http://www.climate.org/publications/Climate%20Alerts/sept2012/flaring-venting-emissions.html 
COM (2012) 636 Final 

to  provide  natural  gas 

for 

9 

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aspects  is  important  to  create  consumer  acceptance,  in  particular  for  biofuels  and  synthetic 
fuels. This is addressed in the accompanying legislative proposal. 

Guidelines on financial incentives for consumers to purchase clean and efficient vehicles are 
indispensable  in  order  to  coordinate  the  demand-side  measures  adopted  in  Members  States. 
This subject is addressed in a forthcoming Commission Staff Working Document "Guidance 
on financial incentives for clean and energy efficient vehicles"32. 

3.4  Addressing the technological development  

R&D  funding  within  Horizon  2020  should  prioritise  research,  demonstration  or  market-
oriented projects for alternative fuels on all transport modes according to the different stages 
of their technological and economic development.  

Specific  technology  roadmaps  for  alternative  fuels  will  be  developed  in  the  frame  of  the 
Strategic Transport Technology Plan33. Where several options exist for the same application, 
fuel prioritisation should be guided by a well-to-wheels analysis, such as developed in studies 
coordinated by the Joint Research Centre (JRC) of the European Commission34.  

Public-private partnerships should be further developed based on the experience gained with 
European Technology Platforms and Joint Technology Initiatives (JTIs). The European Green 
Cars initiative, the Fuel Cells and Hydrogen Joint Undertaking, Clean Sky, and SESAR have 
driven  development  in  their  respective  areas  and  a  new  Joint  Technology  Initiative  on  the 
bioeconomy is under preparation.  

New partnerships should support technology development and accelerate market introduction, 
such  as  the  Smart  Cities  &  Communities  initiative35.  The  Commission  will  facilitate 
information  exchange  and  coordinated  regional  action  across  the  EU  with  the  European 
Electromobility Observatory. 

Research and development of advanced biofuels, the only alternative fuel option for aviation, 
need further investment. The European Industrial Bioenergy Initiative launched in November 
2010 in the framework of the Strategic Energy Technology Plan (SET-Plan)36, aims at large 
scale commercial availability of advanced bioenergy, including resource-efficient biomethane 
production, by 2020. Dedicated financing instruments and market incentives will support the 
construction  of  production  plants  for  aviation  and  other  advanced  biofuels,  with  the  aim  to 
attain the target of two million tonnes of sustainable biofuels by 2020 for civil aviation in the 
Union, as set out by the European Advanced Biofuels Flightpath launched by the Commission 
in 201137, together with major airlines, aircraft manufacturers and biofuel producers.  

New research facilities for Electric Vehicle / Smart Grid Interoperability in the Joint Research 
Centre  (JRC)  will  support  EVs  and  smart  grids.  The  facilities  will  include  full  vehicle, 
component,  including  battery,  and  smart  grid  testing  capabilities  in  support  of  international 
standardisation  activities.  The  JRC  will  promote  the  development  of  harmonised  testing 
methodologies  and  global  standards  for  EVs,  their  power  grid  interoperability  and  their 
recharging  technologies  through  an  international  partnership  with  the  US  Department  of 
Energy (Argonne National Laboratories). 

32 
33 
34 

35 
36 
37 

SEC(2013) xxx 
COM(2012) 501 final of 13/09/2012 
http://iet.jrc.ec.europa.eu/about-jec/sites/iet.jrc.ec.europa.eu.about-
jec/files/documents/wtw3_wtw_report_eurformat.pdf 
COM (2012) 4701  
http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm 
http://ec.europa.eu/energy/renewables/biofuels/flight_path_en.htm 

EN 

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Batteries and fuel cells are key technologies and a comprehensive R&D strategy needs to be 
launched  to  regain  knowledge  in  Europe.  Electrochemistry,  as  a  core  scientific  knowledge, 
therefore needs to be promoted in R&D and professional education. Manufacturing, including 
hydrogen production from renewables and on-board storage should be given support to regain 
and strengthen European competitiveness in this field.  

Union  funded  projects  address  LNG  infrastructure  and  deployment  needs:  for  shipping  the 
North  European  LNG  Infrastructure  Project,  the  Clean  North  Sea  Shipping  (CNSS)  project, 
the  marine  engine  project  HELIOS,  and  for  heavy  duty  vehicles  the  LNG  Blue  Corridor 
project.  Further  research  is  needed  on  dedicated  engines  and  after-treatment  for  CNG  and 
LNG powertrains and light-weight fuel tanks. 

4. 

CONCLUSIONS 

The  market  development  of  alternative  fuels  should  break  the  dependence  on  oil  and 
contribute  to  improving  the  security  of  Europe's  energy  supply,  support  economic  growth, 
strengthen  the  competitiveness  of  European  industry,  and  reduce  greenhouse  gas  emissions 
from transport.  

The increasing demand for energy for transport and the need to break transport's dependency on 
oil  can  only  be  met  by  the  comprehensive  mix  of  alternative  transport  fuels  presented  in  this 
Communication. The growing interest for natural gas – for maritime and inland-waterways, for 
long distance road haulage applications, and light duty vehicles - as well as electricity for short 
distance road transport - indicates that it would be possible, in the short to medium term, to both 
increase the European supply of energy for transport as well as reduce dependency on imported 
oil. At the same time, accelerating the development of advanced biofuels – which have potential 
for  all  transport  modes,  but  are  the  only  option  for  aviation  -  and  the  progressive  build-up  of 
electricity and hydrogen supply networks to provide area wide coverage for road transport are 
essential  for  rapid  market  development.  In  parallel,  research  and  development  of  critical 
components for electric propulsion such as batteries, should deliver significantly improved range, 
performance, durability and reduced costs for a competitive market offer. 

This Communication and the accompanying legislative proposal catalyse the transformation of 
Europe's  energy  supply  for  transport.  With  the  requirements  to  establish  national  policy 
frameworks  for  alternative  fuels  and  the  build-up  of  infrastructure  with  common  technical 
specifications,  the  EU  will  complete  the  policy  measures  on  the  development  of  alternative 
fuels, from research to market penetration, by ensuring availability of the fuels in the market. 

No public spending is required for the build-up of alternative transport fuel infrastructure if the 
Member  States  use  the  wide  range  of  measures  available  to  mobilise  private  investment  cost-
efficiently. Union support will be available from TEN-T funds, Cohesion and Structural Funds 
together with the European Investment Bank lending.  

A  broad  basis  among  industry,  policy  and  civil  society  should  be  maintained  for  the  future 
development  of  alternative  transport  fuels,  using  the  existing  European  expert  groups  with 
participation from industry, civil society, and the Member States.38 

The Commission will continue to support the Member States, review progress and propose any 
necessary changes and adjustments taking into account technological and market developments. 

38 

Inter alia the European Expert Groups on Future Transport Fuels and the Joint Expert Group Transport & 
Environment.  

EN 

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