EU’s Clean Industrial Deal Must Ensure Green Fuels for the Green Transition of the Shipping Sector
The European Commission has launched a plan aimed at strengthening Europe’s competitiveness and green transition. Danish Shipping welcomes the focus on increasing and lowering the cost of renewable energy but also highlights the need for a much stronger effort from the EU to scale up the production of green fuels, particularly for shipping.
Today, the European Commission has unveiled its long-awaited Clean Industrial Deal, a framework consisting of around 40 new initiatives designed to enhance Europe's competitiveness and accelerate the green transition.
The plan has been well received by Danish Shipping, though it also comes with a warning.
“The Commission is focusing on exactly the right areas: competitiveness and green transition. These are fields where Europe has huge untapped potential – but where we also risk being left behind by the US and China if we do not act now. There are some excellent initiatives, such as a strong focus on the large-scale deployment of renewable energy and lower energy prices. And it is very positive that there is an emphasis on the production of green technology and green fuels within the EU. However, I need to see concrete plans for a massive scaling up of green fuel production. Without green fuels to power our ships, we will never achieve our goal of climate-neutral shipping,” said Anne H. Steffensen, CEO of Danish Shipping.
The Commission is focusing on exactly the right areas: competitiveness and green transition. These are fields where Europe has huge untapped potential – but where we also risk being left behind by the US and China if we do not act now.
Among the other measures of particular significance for shipping are improved opportunities for EU funding, including national state aid for green fuel investments, new contractual frameworks between buyers and producers, international trade and investment partnerships—such as those ensuring global green corridors—as well as increased demand for hydrogen to help produce low-emission fuels for shipping.
“Danish and European shipping is a key strategic strength in an uncertain and ever-changing world. It is essential that Danish and European shipping companies take the lead in the green transition on the world’s oceans. A strong and green European shipping sector that remains competitive in the global market will make Europe safer, greener, and more prosperous. But right now, we are at a crossroads. We simply do not have enough green fuels for our ships. The EU must take a leading role in pushing this agenda forward as the Clean Industrial Deal is implemented,” says Anne H. Steffensen.
Read more about the European Commission’s Clean Industrial Deal here.