Oil majors, auto, fuel and bio industries call for biofuel credits for auto makers

London (Quantum Commodity Intelligence) – A wide cross-section of oil majors, auto manufacturers and fuel and biofuel companies called for renewable fuels to generate credits for auto manufacturers in Europe that could contribute towards emissions reduction targets for vehicle fleets, in a joint letter sent to EU and EC luminaries this week.

The voluntary credits, generated by the usage of renewable fuels in the fuel mix in the same way as for existing renewable mandates, could be used by vehicle makers towards their own carbon-cutting targets for vehicles once those mandates have been met.

The contribution of the renewable fuel credits towards vehicle manufacturers' targets would also be capped.

Such a system would incentivise further investment in renewable fuels which the letter says are necessary to meet carbon targets while avoiding double-counting of credits between the system and the EU's Renewable Energy Directive

"A voluntary crediting system would also send timely investment signals for fuel suppliers to embark on the volume production of sustainable renewable fuels, which are much needed for the decarbonisation of legacy vehicles as well as other transport modes, such as shipping and aviation," said the letter.

"As a result, CO2 emissions from transport would be lowered along the value chain from well to wheel."

The letter was signed by 223 associations, companies and scientists, including Eni, ExxonMobil, Mazda Europe, Neste, OMV, Repsol, Siemens Energy, Total Energy, European Association of Automotive Suppliers and Fuels Europe.

"We, the signatories, would like to stress that sustainable renewable fuels are meant to complement and not lessen the EU's efforts on electrification during the transition to zero-emission mobility and for as long as favourable conditions for battery electric and hydrogen mobility are not fully in place across all of the EU Member States."