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Decarbonisation

9 November 2021

New study: Crediting System for Low-Carbon Fuels

Today, Frontier Economics (FE) published a study commissioned by NGVA Europe, together with a coalition of European associations representing the automotive, fuel and energy industries, to review the EC’s Impact Assessment (IA) of a “low-carbon fuel crediting system”.

The "Fit-for-55" Package introduced last summer by the European Commission included a proposal for revising the the CO2 emission standards for new passenger cars and light commercial vehicles (‘fleet targets’). In the IA, the European Commission rejected the introduction of a crediting system for low-carbon fuels (LCF). This new study by FE thoroughly and critically reviews the IA, and demonstrates that:

  • The methodology in the Impact Assessment is inadequate to properly assess the multiple benefits of such a crediting mechanism
  • Crediting is a valuable low-carbon option for the environment, consumers and manufacturers
  • A crediting system can be implemented at limited administrative cost
  • A voluntary crediting system is a “no regret” measure and a step towards a holistic, resilient and effective climate policy

NGVA Europe remains convinced that such a crediting mechanism is the right tool to ensure that decarbonisation of road transport is happening in a fast and cost-effective manner, by recognising the benefits of renewable fuels such as biomethane in cutting CO2 emissions of road vehicles. This study will be the basis to further our dialogue with the EU institutions within the next weeks and months.

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Download the full study here.
Find the related information portal here

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