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E-fuels found to be the only shipping and aviation fuel compatible with meeting the EU’s biodiversity targets

Thursday, 21 November 2024 | 14:00

As the world convenes today at COP29’s Nature and Biodiversity Day, new research from the SASHA Coalition reveals the true extent of the impact different alternative fuels for shipping and aviation have on our planet’s health.

This new report, Fuelling nature: how e-fuels can mitigate biodiversity risk in EU aviation and maritime policy, follows an important development during week one at COP29, where the presidency launched the Hydrogen Declaration with the aim of catalysing a global clean hydrogen market. The new report looks at scenarios considering the four main alternative fuels for planes and ships (e-fuels made from green hydrogen produced with renewable energy, biofuels from crops, biofuels from residue and water and biofuels from oils and fats) and finds that in all scenarios using biofuels would put greater stress on biodiversity stabilisation and recovery.

This is set to get worse over time, and by 2050, the goals of the Nature Restoration Regulation could be completely undermined.

In contrast, prioritising e-fuels made from green hydrogen produced with renewable energy, which already have the greatest emissions reduction potential, would reduce pressure on natural habitats and land demand, and better support the EU’s long-term biodiversity strategy. In fact, e-fuels are the only potential alternative fuels for the shipping and aviation sectors which would reduce pressure on natural habitats and land demand, and which are compatible with meeting the EU’s biodiversity targets.

Rapid expansion of alternative fuel production will be critical in order to meet the EU’s decarbonisation goals for aviation and shipping under the ReFuelEU Aviation and FuelEU Maritime regulations. The EU has set goals to replace 70% of fossil jet fuel with lower GHG-intensity alternatives and to reduce the GHG intensity of maritime energy use by 80%, both by 2050. While these goals are crucial, there is also an urgent need to balance the EU’s decarbonisation targets for aviation and maritime sectors with its goals on biodiversity.

Until now, the need to develop alternative fuels has not been properly assessed alongside the EU’s biodiversity goals (set out in the EU Biodiversity Strategy for 2023, the Nature Restoration Regulation and the Birds and Habitats Directives). The EU’s failure to balance its approaches to the twin crises of climate change and biodiversity loss means our nature is now at risk from a long-term unsustainable approach to the energy transition.

The research shows that none of the alternative fuels available endanger the EU’s 2030 biodiversity targets, mostly due to the small amount of these fuels used or available. But looking ahead to 2050, the picture is clear – we need to invest in e-fuels now as they have the lowest long-term impact on nature and the environment. Additionally, legislation needs to be reassessed in light of the potential damage to nature, ensuring that e-fuels are prioritised in the revision.

Aoife O’Leary, Director of the SASHA Coalition says:

“The shipping and aviation industries urgently need to switch to alternative fuels to help them transition to net zero. But it’s critical that we choose the right fuels that are fit for our future, and if we don’t make the right choices now, our habitats and nature will be affected for decades to come. We are not currently on track to meet shipping and aviation’s alternative fuel demand with e-fuels, meaning our biodiversity is currently at risk. Scaling up e-fuels is costly, and we need much more investment in renewable electricity generation and e-fuel infrastructure to produce the amounts required. Governments must introduce the right policies to support the uptake of e-fuels.”

Cathryn Estes, VP Commercial at Arcadia eFuels says:

“This report adds to the mounting evidence of the environmental benefits of using e-fuels over biofuels, and the need for governments to support green hydrogen e-fuel production and adoption. Governments must recognise e-fuels’ role in decarbonising hard-to-electrify sectors, and put the right policies in place to help us realise their full potential, especially to ensure the limited supplies of green hydrogen we have are directed to the sectors that need them most.”

Recommendations for policymakers

The report lays out the following five key policy recommendations to ensure we decarbonise the shipping and aviation sectors while preserving biodiversity. It recognises that while e-fuels are more compatible with biodiversity preservation than biofuels, a certain level of biofuel use will be needed to meet aviation and shipping demand in the transition. Therefore, biofuel production, when necessary, must be conducted in line with measures to protect biodiversity.

1. Invest in e-fuels: Create the enabling environment to increase investment in and adoption of e-fuels. This will in turn, lead to more public and private investment in renewable electricity generation and e-fuel infrastructure.

2. Monitor soil health: Monitoring and managing soil carbon will ensure the sustainability of bioenergy production where necessary and support broader climate and biodiversity goals as soils are the largest terrestrial carbon store, and support 25% of biodiversity. The EU’s proposed soil monitoring law must align with renewable energy targets by encouraging Member States to adopt forest and agricultural residue removal thresholds for key soil types.

3. Recognise and prioritise the value of using land for preserving biodiversity: Develop assessments to help stakeholders understand the biodiversity values and ecological functions of lands before conversion to biofuel production.

4. Promote biodiversity in agricultural practice: Areas and features such as patches of semi-natural habitat, fallow land, native trees, hedgerows and ponds are essential for supporting biodiversity within agricultural landscapes, serving as refuges for wildlife, enhancing habitat connectivity, and providing ecosystem services such as pollination, natural pest control and water purification. These should be maintained as Ecological Focus Areas (EFAs) or under other agri-environmental measures of the Common Agricultural Policy (CAP). This should include strategies such as guidelines for biodiversity-friendly mixed energy cropping, agroforestry, and adaptive management, to enhance biodiversity preservation.

5. Reduce fuel demand: The pressures on biodiversity are already immense due to existing demands. Delaying demand reduction measures will only exacerbate constraints on land and marine ecosystems, making it costlier and more challenging to achieve climate and biodiversity goals in the future. Implementing overall demand reduction strategies can collectively reduce energy demand and help align the EU’s biodiversity and climate goals.
Source: Opportunity Green

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