The EU’s sweeping proposals to curb greenhouse emissions are likely to upend the continent’s oil demand over the years and decades to come. Here’s a run through the plans — and key timings — for aviation, shipping and makers of road-fuel.
It’s important to remember that the proposals come from the European Commission and still require endorsement from both EU member states — like France and Germany — and the European Parliament to become laws. The whole process usually takes about two years, sometimes longer.
The EU is planning to toughen greenhouse-gas emission rules for airlines. While flights within the bloc have already been included in its carbon market since 2012, the European Commission has now proposed phasing out free permits that carriers currently receive to cover their pollution.
In 2019, OECD Europe’s oil-derived marine fuel market was 50.6 million tons, according to the International Energy Agency. That’s about 925,000 barrels a day, or, about 1% of global oil demand. As part of its proposals, the EU announced plans to include shipping in its Emissions Trading System, and a FuelEU Maritime initiative that aims to boost uptake of sustainable fuels.
The EU is seeking to establish a new emissions-trading program for heating and road transport fuels. The market, adjacent to the existing EU ETS, will regulate fuel suppliers rather than households or car drivers.
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