29 September 2021

GEIR News – September 2021

Almost two years ago, the European Commission released its communication on the European Green Deal, aiming to set the path towards climate neutrality in Europe by 2050.

In the context of this strategy, the key priority for GEIR remains to work towards setting a potential regeneration target for waste oil at the EU level through the ongoing assessment, as outlined in the Waste Framework Directive.

Nevertheless, other upcoming trends for waste oil would find their origin in the recent publication of the “Fit for 55 Package” by the Commission. This comprehensive and interconnected set of 12 legislative proposals aims to deliver the Green Deal by cutting 55% of greenhouse gas (GHG) emissions by 2030 in the EU. While the Package is focusing on several sectors, the set of proposals will have a significant impact on activities in transport & mobility, energy, industry and trade to a certain extent. Importantly, these pieces of legislation will define some of the future trends on the demand and supply for waste lubricating oils, namely for engine and maritime oils. When it comes to land transport, the CO2 Emission Standards Regulation proposal sets new CO2 reduction targets for cars and vans, the final objective being to ban all sales of internal combustion engine cars and vans by 2035. In addition to that, the Commission plans to set up an adjacent EU Emissions Trading System (ETS) for road transport (along with building heating) which will put an obligation on fuel suppliers to buy and surrender emission allowances depending on the carbon intensity of the fuels. With regard to maritime transport, the FuelEU Maritime initiative is setting limits on the GHG intensity of energy used in ships notably by encouraging the switch to alternative and low-carbon fuels. Moreover, it is worth highlighting that the Commission is planning to extend the current ETS to maritime transport emissions. Finally, another major change lies in the revision of the Energy Taxation Directive which sets the taxation on energy products based on their energy content and environmental performance, rather than the volumes consumed. This proposal also introduces a minimum tax rate for maritime fuels to boost the uptake of less polluting alternatives.