EWABA urges improvements to EU ETS revision to maximise renewable fuel deployment

EWABA has welcomed the European Commission’s proposed revision of the EU Emissions Trading System (EU ETS), describing it as a meaningful step towards meeting the bloc’s 2040 climate target while bolstering industrial competitiveness and energy security.

EWABA said the draft text rightly strengthens support for renewable fuels in hard‑to‑abate transport segments, particularly maritime and aviation.

The association highlighted the creation of the Sustainable Maritime Alternative Propulsion (SMAP) mechanism as a major advance, offering long‑term investment certainty for renewable fuel producers and sending a clear signal to investors and suppliers. EWABA also praised provisions recognising the value of European renewable fuel production, noting that domestic output enhances resilience and reduces reliance on imported fossil fuels.

However, EWABA warned that two targeted adjustments are essential for the proposal to deliver its full potential.

First, the association called for explicit inclusion of Annex IX Part B biofuels – notably used cooking oil (UCO) and animal‑fat biodiesel – within the SMAP mechanism.

As drafted, SMAP applies only to Annex IX Part A feedstocks, excluding the most widely available and commercially deployed renewable fuels currently used in maritime transport. EWABA said Part B biodiesel already enables immediate emissions reductions without engine modifications or new bunkering infrastructure and excluding it would undermine the proposal’s decarbonisation goals.

Second, EWABA urged policymakers to ensure sustainability remains the core criterion for feedstock sourcing.

The group cautioned against linking support to geographical origin, arguing that Europe lacks sufficient domestic waste and residue feedstocks to meet demand. Imports of sustainable Annex IX materials are therefore indispensable. EWABA said EU rules should reward verified sustainability and full traceability, supported by the expanding Union Database, rather than location‑based preferences.

EWABA concluded that, with these adjustments, the EU ETS revision would deliver a more effective, technology‑neutral framework capable of accelerating emissions reductions while strengthening Europe’s renewable fuels industry.