EIGA joins 16 other industry associations supporting a clear regulatory framework for low-carbon fuels

The European Commission published its draft Delegated Act on Low Carbon Fuels as per the Hydrogen & Gas Package (art. 9: Certification of renewable gas and low-carbon fuels).

EIGA indeed supports a text that will bring legal certainty. Some amendments could improve the framework:

1. EIGA joined 16 industry associations which:

• Support the intention to deliver this Delegated Act efficiently and swiftly with a technologically neutral approach.
• Welcome the intention to apply equivalent requirements for domestic and imported low-carbon fuels to ensure a necessary level playing field.
• The co-signatories consider it necessary to include in the Delegated Act the possibility to recognise and provide adequate proof of better performance of individual projects, at each step of the production process, for all types of GHG, compared to the default values set in the Delegated Act – the latter needing regular review by the European Commission. Opening the possibility to showcase actual better performance will foster innovation and encourage overall emissions reduction. The calculation of the GHG intensity of the fuel should happen as an average of monthly, or more granular, intervals.
• Support the intention of the European Commission to consider both CCS and CCU but underline the need for clarification on several provisions e.g. the conditions/timeline related to the recognition of CCS in third countries, the provisions related to solid carbon or the introduction of the concept of long-lasting products in addition to permanent CCU (from the ETS) should be addressed.
• Stress the importance of considering the technical maturity and availability of hydrogen leakage detection technologies, a prerequisite before their integration into the GHG emissions calculation of low-carbon fuels and RFNBO.
• Welcome the intention to create a link with the RED Union Database and encourage the European Commission to ensure that the traceability provisions defined for renewable gases are also applicable to low-carbon gases. It should also be ensured that LCFs imported to Europe are properly recognised within the system.
• Underline the need to ensure regulatory certainty and clarity for project developers, whose timelines extend beyond the already foreseen 2030 review of the Delegated Act (Art. 92 of the Hydrogen and Gas Directive). For projects launched before this review, the co-signatories consider as essential to maintain stable regulatory requirements during their operating lifetime, which may extend beyond the review.
• Encourage the European Commission to facilitate a swift and efficient process of accreditation of Voluntary Certification Schemes, as it is one of the pillars of certification, a necessity to enable supply, trade, and demand for domestic and global volumes.

 

2. EIGA provided its own recommendations to the EU Consultation and in particular asked for:

• Regulatory visibility on upstream methane emissions
• Technology neutrality and flexibility in electricity sourcing
• A global level playing field between import and domestic production