The e-NG Coalition has drafted a response to the European Commission’s EU Emissions Trading System (EU ETS), calling for “clearer rules and stronger investment incentives to scale up renewable fuels of non-biological origin (RFNBOs)”.
In its letter, the e-NG Coalition highlights such points as making maritime fuel support bankable; giving the e-fuel value chain legal certainty; unlocking production and infrastructure funding; protecting the carbon price signal; and making sure the rules work together. Some actionable advice offered includes doubling the support reserve to 220 million allowances, making electro-natural gas (e-NG), electro-liquified natural gas (e-LNG) and other RFNBOs explicitly eligible for ETS-funded investment support and a faster reduction in the emissions cap from 2036.
In the letter’s conclusion, e-NG Coalition stated: “Unless the additional funding reaches the fuels facing the largest cost gap and the projects requiring higher capital investments, the revision risks delivering less than expected… Getting these elements right will determine whether the revision unlocks European RFNBO production or leaves it stranded between a weaker price signal and support it cannot rely on.”
