Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Clean power for transport: a European alternative fuels strategy

Europe is heavily dependent on imported oil for its mobility and transport: in 2010, oil counted for 94% of energy consumed in transport, with 55% the largest consumer, 84% of it imported, with a bill of up to €1 billion a day in 2011, leading to a significant deficit in the EU trade balance of around 2.5% of GDP. Our supply of oil, and thus our mobility, depend to a large degree on politically unstable regions raising security of supply concerns. Price hikes driven by speculation on the impact of oil supply disruptions have cost the European economy an additional €50 billion per year over the last four years.

The effect of the oil dependency on the European economy is too large to neglect – the Union must act to end it. A strategy for the transport sector to gradually replace oil with alternative fuels and build up the necessary infrastructure could bring savings on the oil import bill of €4.2 billion per year in 2020, increasing to €9.3 billion per year in 2030, and another €1 billion per year from dampening of price hikes.

Support to the market development of alternative fuels and investment in their infrastructure in Europe will boost growth and a wide range of jobs in the EU. Research convened by the European Climate Foundation finds that 'greening' cars could generate about 700,000 additional jobs by 2025. Vigorous action of the Union as a first-mover on innovative alternative fuel solutions (for instance on batteries and powertrains) will also create new market opportunities for European industry and bolster Europe's competitiveness on the emerging global market.

At present, the market development of alternative fuels is still held back by technological and commercial short-comings, lack of consumer acceptance and missing adequate infrastructure. The current high cost of innovative alternative fuel applications is largely a consequence of these shortcomings. Initatives to support alternative transport fuels exist at both EU and national level but a coherent and stable overarching strategy with an investment friendly regulatory framework needs to be put in place.

For these reasons, this Communication sets out a comprehensive alternative fuels strategy and the road to its implementation covering all modes of transport. It aims at establishing a long-term policy framework to guide technological development and investments in the deployment of these fuels and give confidence to consumers.

An accompanying legislative proposal provides a general direction for the development of alternative fuels in the Single European Transport Area. Member States would have the flexibility to develop policy frameworks for the market development of alternative fuels in their national context. The proposal also sets binding targets for the necessary infrastructure build-up, including common technical specifications.

The Communication is complemented by a staff working document regarding the introduction of LNG as an alternative fuel for shipping.

See also:
- Proposal for a Directive of the European Parliament and of the Council on the deployment of alternative fuels infrastructure

EUR-Lex: SWD(2013)4: Actions towards a comprehensive EU framework on LNG for shipping http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2013:004:FIN

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