Press Release

Europe’s lawmakers vote for world’s first green shipping fuel requirement

October 19, 2022

The European Parliament has voted for a 2% green hydrogen mandate for shipping. But it doesn’t go far enough, says T&E

Europe’s lawmakers voted today in favour of a 2% mandate for green shipping fuels by 2030. Transport & Environment (T&E) welcomes the world’s first measure to decarbonise shipping fuels but says much more will be needed to get shipping to zero emissions.

Delphine Gozillon, sustainable shipping officer at T&E, said: “This is the beginning of the end for fossil fuels in Europe’s shipping industry. The green shipping fuel mandate will kickstart the production of hydrogen-based fuels by providing investment security for fuel producers. But 2% will not be enough if we are to stick to 1.5 degrees. The EU must build on this and go bolder. There is a clear will to clean up the shipping industry. This is just the start.”

T&E has called on the EU to raise this mandate – otherwise known as a sub-quota – to at least 6% in 2035. 50 industry organisations and NGOs from all over Europe, including Unilever, Siemens and Alstom have backed this. The group also called for a removal of the exemption for companies with three ships or less, which would exempt 60% of shipping companies. This was rejected by the Parliament.

The Parliament also failed to announce a greenhouse gas (GHG) reduction target of 100% in 2050 which would effectively phase-out greenhouse gas emitting fuels. This puts the EU’s domestic shipping ambition at odds with its claims to be a global green shipping leader internationally, says T&E.

The Parliament did reduce incentives for fossil gas by introducing stricter GHG targets. This will shorten the lifetime of LNG as a compliance option, but it will not be enough to stop shipping’s worrying shift to LNG, warns T&E. However, as Delphine Gozillon concludes “it does signal that there is no long-term future for fossil LNG in shipping.”

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