EU Parliament support for renewable fuel-powered trucks prompts controversy

Green campaigners have condemned the European Parliament’s proposed provisions for trucks running solely on renewable fuels, though the fuels industry insists the move is in line with Europe’s climate goals.

CO2-neutral fuels are highlighted as a climate solution under the Parliament’s position on the EU’s proposed regulation on CO2 standards for Heavy-Duty Vehicles (HDVs).

The Parliament’s position, approved on 21 November, would task the European Commission with developing “a methodology” for registering trucks, buses and trailers “running exclusively on CO2-neutral fuels”.

While the text is not explicit, it is presumed that such vehicles would count towards the overall carbon reduction fleet targets that manufacturers must meet. The draft targets mandate a 45% reduction in 2030, 65% in 2035, and 90% as of 2040.

The move to include HDVs running on CO2-neutral fuels in addition to electric and hydrogen vehicles is reminiscent of the debate over passenger car CO2 standards. In a last-minute intervention, Germany, the bloc’s automotive leader, secured an agreement that new synthetic fuel-powered cars could be sold after the zero-emission cut-off date in 2035.

However, while the law governing passenger car CO2 standards included an exception for e-fuels made with green hydrogen and carbon captured from the atmosphere, the Parliament’s definition of CO2-neutral fuels for HDVs is broader.

The Parliament’s definition adheres more closely to that contained in the Renewable Energy Directive, which includes not only synthetic fuels, but biofuels – both crop-based and those made from waste materials and residues.

If the Parliament position is adopted as law, trucks running exclusively on biodiesel made from crops would be considered carbon neutral.

‘Technology diversity’

In the run-up to the Parliament vote, fuels groups pushed strongly for a so-called Carbon Correction Factor (CCF) under which the quantity of green fuels in Europe’s fuel mix would automatically count towards the CO2 targets for HDVs.

While the CCF was ultimately defeated, lawmakers did pass an amendment in support of CO2-neutral fuels.

The inclusion of this amendment was praised by the centre-right European People’s Party (EPP), who hailed the vote as a defeat for Europe’s “prohibition policy”.

“Excluding technology from the outset is the wrong way. At the end of the day, everyone should decide for themselves which technological solution is best suited for their applications,” said Jens Gieseke, the EPP’s speaker on the file.

Refinery lobby group FuelsEurope called the inclusion of renewable fuels “an additional route for meeting Europe’s climate neutrality objectives”, while CLEPA, a trade association for automotive suppliers, branded it “a positive signal for technology diversity” that will allow manufacturers to more effectively cut emissions.

The biofuels industry similarly portrayed the move as a means to ensure the EU meets its climate objectives.

“The EU Parliament has understood that heavy-duty vehicles, buses and coaches are not cars, and that electrification needs to be complemented by other solutions currently more available and affordable,” said Xavier Noyon, secretary general of trade group the European Biodiesel Board (EBB).

“The future of climate-neutral transport will be based on real emissions over the life cycle and technology neutrality otherwise we will fail,” he told Euractiv.

Noyon additionally remarked that as the carbon-neutral fuels backed by the Parliament are included in the Renewable Energy Directive to decarbonise road transport, “their sustainability cannot seriously be questioned”.

However, environmental groups slammed the Parliament’s favourable stance towards alternative fuels, calling it “a lifeline to the oil industry”.

“Even suggesting that trucks running on palm and soy could play a role in the EU’s climate efforts is madness,” said Fedor Unterlohner, freight manager at green NGO Transport & Environment.

“The Commission and Council should now clarify during the trilogue negotiations that there is no role left for trucks running on e-diesel, HVO or biomethane as they will be 25-50% more expensive than their zero-emission counterparts,” he told Euractiv.

Beyond the environmental debate, it remains to be seen if customers will opt for green-fuel-powered trucks over alternatives.

Speaking to journalists, Alexander Vlaskamp, the CEO of manufacturer MAN Truck & Bus said that the extra expense of e-fuels – which are roughly twice the price of hydrogen – is likely to make synthetic fuel-powered trucks unpopular.

“As we are in the commercial vehicle industry, our customers have to make money when they operate their vehicles. Buying e-fuels for their fleet is far too expensive,” he said.

The Parliament will now enter into negotiations with the Council of the EU, which represents member states, to finalise the law.

As the Council did not include a provision for HDVs running exclusively on green fuels within its negotiating text, it is uncertain if countries will accept this.

While member states such as Italy, Poland and Czechia have sought to enshrine biofuels to decarbonise transport, they have faced pushback from other nations. Germany is known to be a proponent of synthetic fuels, but has not traditionally extended the same backing to crop-based biofuels.

[Edited by Frédéric Simon/Nathalie Weatherald]

Read more with EURACTIV